New Delhi - Indian stocks tumbled in morning trading on Monday as the benchmark Sensex plunged 5.6 per cent on nervous selling by funds and investors on reports that US investment banker Lehman Brothers appeared ready to file for bankruptcy.

The 30-share-sensitive index was trading at 13,210 levels, a loss of 786 points, or a 5.61 per cent at 11:30 local time (0600 GMT), over an hour after opening.

Realty, capital goods, oil and pharma stocks declined sharply.

Washington - The embattled investment bank Lehman Brothers was expected to file for bankruptcy before the start of trading later Monday, hours after financial services firm Merrill Lynch agreed to sell itself to Bank of America.

Negotiations throughout the weekend failed to produce a buyer for the venerable Lehman Brothers, leading to the bankruptcy plans, the Washington Post reported early Monday on its website.

Manila - Philippine shares fell sharply by 4.15 per cent on Monday on fresh fears over the continuing financial woes in the United States.

The Philippines Stock Exchange's 30-share composite index plunged 109.96 points to close at 2,536.16 from Friday's finish of 2,646.12.

A total of 2.02 billion shares valued at 1.91 billion pesos (40.65 million dollars) were traded.

Losers swamped gainers 92 to 11, with 33 issues unchanged.

Taipei - Taiwan's stock market shed nearly 4 per cent Monday due to investors' fears that the US investment bank Lehman Brothers Holdings Inc may declare bankruptcy.

In mid-morning trading, the TAIEX index fell 211.39 points, or 3.35 per cent, to 6,099.29 points.

New York - Crisis talks continued Saturday involving US Treasury Secretary Henry Paulson and top bankers amid ongoing fears about the future of Lehman Brothers Holdings Inc.

US media reports said Paulson had categorically ruled out any any state aid for the bank, which is desperately looking for a potential buyer after its shares tumbled 94 per cent since the beginning of the year as the credit crisis ravaged the US financial sector.

Bank of America Corp was said to be the leading contender for a takeover, but British banks Barclays and HSBC were also seen as having a possible a role in a rescue.

New York  - US stocks made small gains on Friday, led by energy and metals companies, but were held down by ongoing fears about the future of Lehman Brothers Holdings Inc.

Hurricane Ike's anticipated arrival on the US mainland drove up petrol prices, helping refiners make strong gains.

The price of copper surged while gold ended a nine-day string of losses. Shares in metals giant Freeport-McMoRan Copper and Gold Inc jumped more than 8 per cent.