London is still top among the world’s financial centres but the fallout from the credit crunch has cut into its lead over rival cities, particularly in Asia and the Middle East, according to a study to be released today.

Singapore climbed past Hong Kong into third place, followed by Zurich, Geneva and a newly resurgent Tokyo, which rose two places into seventh.

The Global Financial Centres Index – a twice-yearly ranking – found that both London and New York, its nearest rival, had lost ground since February in the wake of financial crises and massive job losses in financial services.

The gap between New York and the third place city is now the smallest ever.

Financial Times