New York  - Major US stock indices closed lower Monday, after the World Bank said it expects the global economy to shrink this year and billionaire Warren Buffett offered another dire assessment about the state of the US economy.

Hong Kong- Hong Kong shares plummeted by nearly 5 per cent Monday, sliding steeply in late trading as shares in HSBC bank fell by a massive 24 per cent.

The blue-chip Hang Seng Index fell by 576.94 points, or 4.84 per cent, to end the day at 11,344.58. Turnover was 35.7 billion Hong Kong dollars (4.6 billion US dollars.)

Monday's trading was dominated by a sell-off of HSBC shares which fell 24 per cent to close at 33 Hong Kong dollars, their lowest level since 1995.

Tokyo  - Japan's benchmark Nikkei 225 Stock Average on Monday dropped to its lowest closing level in more than 26 years on concerns over prospects of the global financial industry and the domestic economy.

The benchmark Nikkei index fell 87.07 points, or 1.21 per cent, to close at 7,086.03.

The broader Topix index of all first section issues was also down 10.86 points, or 1.51 per cent, to 710.53.

On currency markets at midday (0300 GMT), the dollar traded at 98.32-37 yen, up from Friday's 5 pm quote of 97.35-37 yen.

Tokyo  - The Tokyo market ended morning trading lower Monday on worries about the US financial sector.

The benchmark Nikkei 225 Stock Average dipped 57.91 points, or 0.81 per cent, to 7,115.19.

The broader Topix index of all first section issues was also down 10.22 points, or 1.42 per cent, to 711.17.

On currency markets at 9 am (0000 GMT), the dollar traded at 97.94-99 yen, up from Friday's 5 pm quote of 97.35-37 yen.

For the week ended Mar 6, 2009, the 30 share index, Sensex lost 565.79 points (6.36%) to settle at 8,325.82, while the broad based NSE Nifty sank 143.5 points (5.19%) at 2,620.15 during the same period.

During the week, mid-cap stocks declined 171.99 points at 2,586.30. The small-cap shares dropped 194.28 points (6.25%) at 2,911.73.

The easing inflation, which dropped by 33 basis points to 3.03%, and administration’s stimulus of cut in interest rate by 50 basis points failed to boost investor reaction in the markets.

Indian equities closed the week on a positive note. Fag-end buying in sectors including IT, metals and refinery stocks assisted the benchmark Sensex to close up 128 points.

After gaining over 3%, IT stocks topped the list among sectoral indices. IT sector remained in the forefront following a continued fall in the Indian current to near the 52 level as compared to US dollar as big portion of their income comes from abroad.