Asian stock markets have fallen significantly, with Japan's Nikkei Index sinking nearly 10 percent. This is as recent steps by the world's major economies to fortify credit markets have failed to stem fears that the spreading financial crisis could spawn a global recession. Though it remains to be seen how the coordinated rate cut will affect the markets on Thursday.

After a miserable day on Wall Street, investors in Asia responded by dumping stocks in a broad regional sell-off.

In Japan shares were hammered hard. The benchmark Nikkei Index spiraled down nearly 10 percent in afternoon trading to its lowest intraday level in five years.