Banks Sink Regional Stocks

Asian markets tumbled Friday on the heels of a sharp retreat in U.S. stocks overnight following the release of more dismal economic data.

In Australia, the S&P/ASX 200 fell 3.4% to close at 4970.50. Shares were particularly hard hit after National Australia Bank disclosed an additional provision of 830 million Australian dollars against its portfolio of collateralized debt obligations. The bank said the portfolio is now provisioned to a "worst case" level of nearly 90%. (See related article.)

That news pushed shares of NAB down 13.5%, and sent ...