Global stock markets dropped for a second day running on Friday over investor alarm about the potential for a widespread default after Dubai's shock demand to suspend the debt of a key state company. Asian indices suffered massive falls, with Hong Kong's Hang Seng Index slumping almost five percent by the close. Tokyo dived 3.22 percent, hit also by the yen striking a fresh 14-year high point against the dollar, which is bad for Japanese exporters. Shortly after the start of European trading, London's benchmark FTSE 100 index was down 0.36 percent at 5,175.44 points, one day after falling by its sharpest amount since March.