Stocks now: Japan index falls as much as 10%
HONG KONG -- Asian stocks plummeted Thursday, with Tokyo's market plunging more than 10%, after another dive on Wall Street as worse-than-expected data about the U.S. economy heightened fears of a global recession.
Japan's benchmark Nikkei 225 stock average slid 911 points, or 9.6%, to 8,635.56, after earlier falling as much as 10.3%. Hong Kong's key index lost 963.65 points, or 6%, to 15,034.65.
South Korea's Kospi was down 7.2%, Australia's benchmark was off 6.3% and Singapore's index lost about 6%.
Investors were unnerved by U.S. data showing the country's retail sales fell 1.2% in September, almost double the 0.7% decline analysts expected. Other readings, released by the U.S. Federal Reserve, indicated the economy continued to slow in the early fall as financial and credit market problems took a turn for the worse.
The figures were ominous signs that the world's largest economy — a critical export market for Asia — was sliding into recession.
"Sentiment is deteriorating very fast. People are losing what little confidence they have on a day-by-day basis," said Jacky Choi, a Hong Kong-based fund manager at Value Partners Ltd., which manages about $5 billion in Asia. "Everyone is very worried about the economy in the U.S and around the world."
In New York Wednesday, the Dow Industrial average ended down 733.08, or 7.87%, at 8,577.91 — the biggest percentage drop since the 8% drop on Oct. 26, 1987, which followed Black Monday, the Oct. 19 crash that sent the blue chips down 22.6% in a single session.
The massive selling accelerated as the U.S. Federal Reserve Chairman Ben Bernanke warned in a speech Wednesday that patching up the credit markets won't provide an instantaneous jolt to the economy.
Oil prices continued to fall. Light, sweet crude for November delivery slid $1.48 to $73.06 in Asian trade on the New York Mercantile Exchange.
European markets sank Wednesday, with Britain's FTSE 100 index dropping 7.2% to 4,079.59, while Germany's DAX ended down 6.5% at 4,861.63
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