World stock markets suffered fresh maulings Monday with five-percent plunges in Europe and Tokyo at a four-year low on doubts whether a Wall Street bailout package could stem the global financial crisis, dealers said.

The London and Paris stock markets plunged five percent in morning trade after Germany's fourth biggest bank had to be rescued over the weekend -- news that pushed the euro to a 13-month low against the dollar on Monday.

Crude oil futures meanwhile tumbled below 90 dollars a barrel in London and New York as worsening financial turmoil triggered fears about slowing demand for energy.

"The market is not convinced that the US bailout package can protect the economy from the financial crisis," said Toyo Securities strategist Ryuta Otsuka.

Investors dumped shares after US stock markets had fallen sharply on Friday, despite US congressional approval of a 700-billion-dollar bank bailout.

On Monday, Tokyo's Nikkei-225 index ended down 4.25 percent as Sydney's stock market lost 3.3 percent and Seoul tumbled 4.3 percent.

European indices plummeted in morning trade, with London down a massive 5.09 percent, Paris suffering a loss of 5.08 percent and Frankfurt 4.91 percent lower.

"The Fed's bailout plan may have been passed on Friday but so far there's been no real reaction in credit markets and because of this the natural assumption is going to be that the measures won't work, even if such a call is rather premature," said CMC Markets dealer Matt Buckland.

Underscoring the worsening conditions in the United States, the world's largest economy, 159,000 US jobs were lost in September, according to government figures published Friday.

"The approval of the financial rescue plan failed to bolster market confidence. Pessimism towards the global economy is running deeper," said Young Wang, an analyst at Yuanta Securities Investment Consulting in Taipei, where stocks ended down 4.1 percent, also at a four-year low.

As the US-born financial crisis takes a stronger grip in Europe, the German government agreed an emergency rescue package of 50 billion euros, or 68 billion dollars, for Hypo Real Estate, late Sunday before markets opened in Asia.

It also announced an unlimited guarantee for personal savings deposits.

France's BNP Paribas meanwhile announced Sunday that it was taking control of the operations of ailing financial group Fortis in Belgium and Luxembourg.

The leaders of France, Germany, Italy and Britain vowed over the weekend to protect fragile banks but did not discuss a European financial rescue package.

"Financial stocks are certainly going to be under pressure again with German mortgage lender Hypo Real Estate being the latest to receive state aid but the overall impact is going to cross all sectors with the prospect of slowing demand weighing on all the (company) heavyweights," added Buckland.

In an effort to keep credit flowing, Japan's central bank pumped emergency funds into the short-term money market for a 14th straight business day, pouring in 1.0 trillion yen (9.5 billion dollars).

Markets were looking ahead to a meeting Friday of finance chiefs from the Group of Seven rich nations, waiting for any announcements on coordinated action such as liquidity injections or interest rate cuts, dealers said.

A speech Tuesday by US Federal Reserve Chairman Ben Bernanke would also be closely watched for any clues on the possibility of a US interest rate cut.

The Bank of England was expected to cut British borrowing costs by at least a quarter of a percentage point when it meets on Thursday.