US markets end lower; Dow down 80 pts while Asian markets trading higher; Nikkei up 1.33%

US markets fell after President Barack Obama warned of stricter oversight for Wall Street. Also, dividend cuts triggered a sell-off in insurers and an unexpected drop in home sales dragged down industrial shares, overshadowing speculation that banks will pass the government's so-called stress tests.

The Dow Jones Industrial Average was down 80.05 points or 1.1% at 7,270.89. The S&P 500 Index shed 8.24 points or 1.1% to 764.90 while the Nasdaq Composite Index lost 16.40 points or 1.1% to 1,425.43.

In economic data, the January home sales came in at lowest levels since 1997, down 5.3%.

Gold fell 2% after US policymakers reassured investors that the economy will recover from the recession, eroding the appeal of the precious metal as an alternative investment. Silver slid too.