The news from European and Asian markets is grim today.

“European shares have followed the lead from Asia and fallen in early trading, reports the BBC, “with investors troubled by signs that the US housing market is deteriorating.”

London’s FTSE 100, Frankfurt’s Dax and the Paris Cac 40 all fell by just over 1% in morning trade.

Asia fared worse. Hong Kong’s Hang Seng closed down 3.6% and Japan’s benchmark Nikkei 225 index closed 3.3% lower.

India’s Sensex index shed 5% before closing 3.8% lower while Taiwan’s Taiex dropped 1.47%.

Record home repossessions in the US and indicators that the credit crisis there is spreading have rattled investors, many of whom now believe the US is heading for, or has already entered, a recession.

Despite today’s bad news from the Nikkei, Eric Roseman remains bullish on Japan.

“Japanese consumer spending is responsible for about 50% of GDP. Any marked improvement in domestic consumption is therefore bullish for smaller companies and corporate earnings.

At this point, amid a bear market for global stocks, it’s hard to forecast when Japanese smaller companies will rebound. They’re unbelievably cheap at this point. Long-term investors should view Japanese small-caps as a cheap option with no expiration.”

And for China bulls, J. Christoph Amberger is tipping a Chinese-Canadian mining stock you can pick up for less than C$3. To find why this stock could double, click here.