Asian Markets: Shares lower as JAL plunges again on fears of bankruptcy

Updated

In Asia today, Japan's Nikkei Index closed at 10, 258 – up 0.2 percent. Hong Kong's Hang Seng Index lost 0.3 percent, ending the day at 21,930, and China's Shanghai Composite Index fell 0.1 percent to 2,977.

Japan's worst-performing stock was Japan Airlines Corp. (JALSY), which plunged 11 percent for a second day in a row. Reports surfaced that the airline will abandon plans to raise cash by selling part of its JALways Co., and investors began toying with the idea of bankruptcy for the beleaguered airline. The company is begging creditors for 600 billion yen ($6.6 billion) in financial assistance, including debt relief of about 300 billion yen ($3.3 billion), according to a Reuters report. A government committee is overseeing the airline's efforts to right itself, but so far has rejected plans, including a proposal to cut operating costs by 30 percent by eliminating 6,800 jobs and 50 flying routes.

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