IN THE U.S.: DOW TRIPS AMID WORRIES OVER FAR EAST MARKETS.

Byline: Jonathan Fuerbringer The New York Times

The tug of war continued in the stock market Monday, with those worried about the economic fallout from Asia's financial turmoil winning this round.

The Dow Jones industrial average fell 113.15 points, or 1.4 percent, to 7,767.92, while the broader Standard & Poor's index of 500 stocks dropped 16.42 points, or 1.7 percent, to 946.67. While a sizable decline, the Dow is still up 8.5 percent since its record 554 point decline on Oct. 27, leaving the Asian optimists still in the lead.

But analysts expect the stock market to stay volatile as investors reassess the outlook almost daily because of new developments from Asia.

The stocks of companies exposed to Asia remained on their roller coaster as the sentiment about the outlook for Asia and its impact on growth, earnings and inflation here changed once again.

The apparent trigger for Monday's sell-off was the formal announcement of the closing of Yamaichi Securities Co., the fourth largest brokerage house in Japan.

The Yamaichi closing has raised concerns about the Japanese selling their holdings of American bonds, a move that could drive U.S. interest rates higher.