Asian, European markets drop over bailout uncertainty

(CNN) -- Asian and European stock markets pushed lower Monday after having the weekend to digest Friday's passage of a $700 billion bank bailout plan in the United States.

The U.S. Congress passed the bill last week, and President George W. Bush signed it Friday.

Growing fears about European financial markets added to the selloff.

Losses of 4 to 5 percent were the norm.

Japan's Nikkei Exchange closed down 465.05 points, or 4.25 percent, at 10,473.09 on Monday, extending Friday's three-year low.

The Korea Exchange in Seoul, South Korea finished the day off 4.3 percent.

Singapore's Straits Times Index was down nearly 4.9 percent in late-day trading and the Shanghai Composite fell about 5.2 percent. The Taiwan Weighted shed 4.1 percent. Watch a somber start to Monday trading in Asia-Pacific »

The Australian Securities Exchange plunged about 3.4 percent to 4,544.70, and Hong Kong's Hang Seng was off 4.7 percent of its value, falling to 16,853.85.

Meanwhile, the major European markets fell sharply Monday, following the lead of Asian-Pacific markets. In early trading, London's FSTE slipped 2.3 percent, while the CAC 40 in Paris shed 4.4 percent. Germany's XETRA DAX dropped 3.9 percent.

Vienna's Stock Exchange plunged 8.4 percent after the opening bell; its biggest drop since May 2005, The Associated Press reported.

Russia's RTS index held onto steep early losses after plunging nearly 9 percent in the first 30 minutes of trading on Monday. At 12 p.m. (4 a.m. ET), the index was down 8.75 percent.

Wall Street fell on fell on Friday as the three major indices were all down more than a percent. The Dow Jones industrial average fell 157.47 points, 1.5 percent. The Standard & Poor's 500 index lost 1.35 percent and the Nasdaq composite lost 1.48 percent.

Stock markets around the world have endured days of turmoil as a consequence of uncertainty over Washington's response to the credit crisis. Watch debate on whether the bailout will work »

European markets rallied last Friday after Wall Street opened.