If there is one thing investors hate it is uncertainty, and with the risk of more skeletons in the closet, few people were in the mood to buy.
News that the US, Eurozone, Japanese and other central banks had pumped huge amounts of cash into the financial system only appeared to add to the sense of nervousness in Asian markets about the US mortgage market troubles.
Although the central banks' actions aimed to reassure investors, some took the view that the problem could be bigger than had been initially thought because the central banks were forced to intervene.
Investors fear that the US housing woes might eventually affect global economic growth if funds for business dry up, although analysts said that so far the fallout appeared to be limited.
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