Pessimism abounds in stock markets worldwide. New York share prices have taken a beating amid concern over corporate earnings and economic prospects. The tumble in New York quickly spilled over to Tokyo, sending key market gauges to their year-to-date lows.

Given the eroded investor confidence, the Tokyo market -- as measured by the 225-issue Nikkei average -- appears likely to move between 13,500 and 15,000 in the short term.

The biggest question now is whether Wall Street is in for a sustained slide. Investors were disappointed at the U.S. Federal Reserve's refusal to cut a key interest rate at a meeting of its policy-setting committee Tuesday.