Nikkei

ON JAPAN

Stocks in Asia rallied overnight as reports of slowing Chinese growth increased speculation the government would act to ease lending curbs and avoid a hard landing.

Asian markets rallied overnight as Moody's mulled raising the ratings of some Asian countries, while investors pinned their hopes on an EU summit to solve the debt crisis.

Asian stocks fell overnight alongside US indices after a congressional committee in the States charged with reducing the nation's deficit failed on Monday to agree on cuts.

Markets across Europe recovered from early losses on Thursday despite a new warning from the EU Commission that the eurozone may fall into recession next year.

Markets in Asia and the US soared overnight after leaders in Europe agreed a three-pronged deal to tackle the debt crisis.

Asian shares suffered overnight and European indices plunged today as investors fretted over the lack of progress towards solving Europe's debt crisis.

The FTSE 100 has fallen a further 2.7% in early trading after the S&P 500 closed under 1,100 for the first time since September 2010.

Asian indices responded to the move by Standard & Poor's to downgrade Italy by falling overnight.

The FTSE 100 sold off sharply in early trading alongside indices across Europe as fears over a break-up of the region swept across markets once again.