Crisis echoes from Hungary to Wall St

By Patricia Zengerle

WASHINGTON (Reuters) - More emerging markets fell victim to the spreading global financial crisis on Wednesday and a raft of large U.S. companies posted poor results, sending fresh shivers through financial markets around the world as recession fears deepened.

Argentina's surprise plan to nationalize its private pension system caused chaos in local markets and spread gloom to other emerging markets as investors read it as a desperate government move to stave off default. The country's stock market has plunged 27 percent since the government announced the plan on Tuesday.

And in Hungary the central bank hiked interest rates aggressively to prop up its battered currency as officials said the country sought help from the International Monetary Fund. Investors, however, continued to sell the forint on concerns over the health of Hungary's banking system and its ability to finance a large external debt.

The White House said U.S. President George W. Bush will host world leaders on November 15 to discuss the financial crisis, future reforms and begin developing solutions. The White House, however, played down the idea that quick fixes would emerge at the talks.

On Wall Street on Wednesday, stocks skidded to a five-year low, slammed by disappointing results from companies including planemaker Boeing and carrier AT&T . Plummeting commodity prices drove down shares of energy and materials companies.

Oil fell 7.5 percent to below $67, a 16-month low.

The Standard & Poor's 500 index and Nasdaq Composite Index each closed at their lowest levels since 2003, slumping 6.10 percent and 4.77 percent, respectively. The Dow Jones industrial average sank 5.69 percent.

The deteriorating global economy and concern about financial market stability sent the dollar to a two-year high.