LONDON/HONG KONG (AFP) - Europe's main stock markets closed sharply lower on Monday, extending losses after another massive bailout for US insurer AIG and a huge cash call at bank giant HSBC spooked already nervous investors. In London, the FTSE 100 index of leading shares lost 5.33 percent, its worst finish since 2003. In Frankfurt, the DAX fell 3.48 percent and in Paris the CAC 40 tumbled 4.48 percent. Meanwhile, Asian markets tumbled Monday, taking their cue from Wall Street's fall to near 12-year lows, as fears deepened over the ravaging effects of the global financial crisis and the plight of major banks. Tokyo stocks sank 3.81 percent as diving Japanese automobile sales added to worries about the recession in Asia's largest economy, which is being battered by a slump in exports. "The Tokyo market is being hit directly by the lower share prices overseas," said Toshihiko Matsuno, research head at SMBC Friend Securities. The market in New York Friday reacted to news of a worse-than-expected 6.2 percent contraction in the US economy in the fourth quarter. Banking fears were exacerbated by HSBC announcing a rights issue amid a 70 percent slump in net profit and after the US government said Friday it would increase its stake in ailing Citigroup to 36 percent. The news helped push Hong Kong stocks 3.9 percent lower. "HSBC's massive rights issue makes the Hong Kong market feel the credit crisis is lapping closer to our shores, which really hurts sentiment," Y.K. Chan, a strategist at Phillip Capital Management, told Dow Jones Newswires. Australian share prices tumbled 2.8 percent to a five-year low on falls in the banking and mining sectors. South Korean shares closed down 4.2 percent. Chinese shares climbed 0.51 percent on government stimulus hopes.