Asian markets were mostly lower Tuesday as financial shares lost ground amid spreading turmoil in financial markets. Japan shed 2% while South Korea closed 1.77% lower.
Credit worries flared up after thousands of savers lined up on Monday to pull deposits from Britain's fifth-largest housing lender, Northern Rock, which fell victim to the sharp rise in borrowing costs between banks and had to be rescued by emergency Bank of England funding last week.
Financial stocks were further hit after Bank of America , the second-largest U.S. bank, warned that recent volatility in capital and credit markets will have a "meaningful impact" on third-quarter results at its corporate and investment bank. Japan's Mizuho Financial Group, Australia's National Australia Bank, South Korea's Woori Finance and Singapore's United Overseas Bank were all on the decline.