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PRICES TUMBLE ON WORLD MARKETS; TRADING IS HALTED TWICE IN PARIS

SHARE PRICES TUMBLE ON WORLD MARKETS; TRADING IS HALTED TWICE IN PARIS

Stock prices tumbled Monday on European and Far Eastern markets, and trading on the Paris exchange was suspended twice as investors reacted to Friday's 190-point plunge on Wall Street after a weekend of financial hand-wringing.

Brokers said shock waves from the selling spree in New York sent prices plummeting on the Tokyo, Hong Kong, Australian, New Zealand, Philippine and Thai stock exchanges, although bargain hunters prompted a slight recovery.More than $54.5 billion was wiped out from share values in London as traders ignored advice from the Bank of England to stay calm.

In Frankfurt, stocks sank 8 percent, and panic selling was evident as traders reported extremely hectic business.

In Milan, Italian officials temporarily suspended trading on 55 percent of all listed stocks because of heavy declines. Overall the market index was down 6.7 percent shortly before the close.

Prices on the Tokyo Stock Exchange plummeted across the board Monday in the market's sharpest single-session fall this year, with much of the decline registered in the first 15 minutes of trading. The dollar plunged against the yen, closing 3.25 yen lower at 140.75 yen.

Analysts played down the significance of the slide, saying it was expected and reflected investor nervousness.

On the Hong Kong market, the Hang Seng Index dropped 181 points, or about 6.5 percent, in hectic trading to close at 2601.70. The market dropped 162 points in the first 10 minutes.

The drop fell far short of the 33 percent dive that followed the Wall Street crash of October 1987, but nevertheless was the sharpest fall in the Hong Kong market since a 580-point plunge June 5 after Chinese troops opened fire on demonstrators at Beijing's Tiananmen Square.

In Bangkok, prices on the Thai market plunged more than 40 points for a loss of about 6 percent. Only mandatory halts limiting a stock's slide to 10 percent in a day prevented further damage.

American Stock Exchange President Kenneth Liebler said Monday that trading in Tokyo and London showed that markets were not headed toward a repeat of the crash two years ago.

"It's not nearly as bad as what we saw during the Black Monday experience two years ago," Liebler said on CBS "This Morning."

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(Additional information)

Around the globe

Stock markets worldwide dropped Monday in response to Friday's plunge on Wall Street:

LONDON: 100-share Financial Times-Stock Exchange 2,163.4, down 70.5 points or 3.2 percent.

FRANKFURT: German Stock Index 1385.72, off 203.56 points or 12.8 percent.

TOKYO: 225-issue Nikkei Stock Average 34,468.69, down 647.33 or 1.8 percent.

HONG KONG: Hang Seng Index, 2,601.70, down 180.60 or 6.5 percent.

SYDNEY: All Ordinaries Index, 1,601.5, down 140.4 points or 8 percent.

MANILA: Composite Index 1,212.21, down 76.41 or 5.92 percent.