As heads of the Big Three U.S. car-makers appealed for a government handout in Washington, the outlook for world economies weighed on investors.

Tokyo lost 0.66 percent, while Hong Kong slid 0.77 percent as dealers were unable to find any recent positive news as the worst financial crisis in decades dragged on.

“A strong sense of caution lingers,” said Motoki Ichikawa, investment information chief at SMBC Friend Securities in Tokyo.

“The market lacks a clear direction,” he said, adding investors were watching for additional economic stimulus measures in the United States as well as a possible rescue for the Big Three: General Motors, Ford and Chrysler.

Sydney was 0.7 percent off, Seoul lost almost two percent, Taipei ended 0.49 percent down and Singapore dived 1.59 percent.

However, Shanghai soared 6.05 percent on bargain-hunting a day after plummeting 6.31 percent.

U.S. Treasury Secretary Henry Paulson warned there was no immediate relief in sight for the American economy, but ruled out using a giant Wall Street bailout package to help automakers.

GM boss Rick Wagoner warned the U.S. economy faces “catastrophic collapse” if the government does not step in, while Chrysler’s chief said the firm could run out of cash without “immediate” help.

“Investors are increasingly wary about the situation because the likely aftermath would be significant if the (U.S. ) carmakers collapse,” Yukio Takahashi, market analyst at Shinko Securities, told Dow Jones Newswires.

Japan’s Nissan Motor chief executive Carlos Ghosn warned the company was likely to make “zero” profits in the second half of the current fiscal year. Japan, Hong Kong and Germany are already in recession, while it is widely expected the United States and Britain will follow.

The financial crisis continued to pressure shipping firms and airlines. Neptune Orient Lines (NOL) said it would cut about 1,000 jobs, blaming an “unprecedented” industry downturn, and Air New Zealand announced 200 layoffs.

Hong Kong pumped US$600 million into the forex market to defend the local currency’s peg to the greenback. South Korea said its corporate bankruptcies hit a three-year high in October.

The Asian losses came despite modest gains overnight on Wall Street, which finished 1.83 percent higher.

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