Asian stock markets tumble on recovery fears

HONG KONG (AFP) - Asian stocks slumped on Tuesday, led by a Wall Street dive sparked by renewed fears a global economic recovery may not be as quick as hoped following a grim World Bank report.
Tokyo sank 2.82 percent, Sydney shed 3.10 percent, Hong Kong 2.89 percent and Seoul 2.8 percent, with commodity and energy stocks bearing the brunt of selling. Elsewhere Taipei was down 2.27 percent and Shanghai lost 0.12 percent.
The region took a cue from a 2.35 percent drop on Wall Street, its worst single-day loss in two months after the World Bank estimated growth among developing economies at just 1.2 percent, much lower than the previous two years. Profit-taking after a three-month rally also weighed on shares.
The declines in share and commodity markets can simply be put down to good, old-fashioned profit-taking, said Craig James, chief economist at CommSec.
The rally in commodity prices went too far, too soon. Fund managers are urgently trying to lock in gains.
Commodity firms had been pushed higher by rising crude prices, which passed 73 dollars earlier this month before falling back and below $67 Tuesday.
A correction had been expected in stock markets recently as they had soared to highs not seen for several months after hitting a trough in March.
TOKYO: Down 2.82 percent. The Nikkei-225 slumped 276.66 points to 9,549.61 after falling more than three percent earlier in the day.
HONG KONG: Down 2.89 percent. The Hang Seng Index retreated 521.18 points to 17,538.37. Traders said they expected the index to fall to 16,500 in the medium term.
SYDNEY: Down 3.10 percent. The S&P/ASX 200 index slumped 121.3 points to 3,796.9, its biggest fall since May 14.
SHANGHAI: Down 0.12pc. The Shanghai Composite Index, which covers A and B shares, fell 3.61 points to 2,892.70.
The fall ended a four-day winning streak for the bourse.
TAIPEI: Down 2.27 percent. The weighted index dropped 143.74 points to 6,197.47.
SEOUL: Down 2.8 percent. The KOSPI ended 39.17 points lower at 1,360.54, the lowest since April 29.
SINGAPORE: Down 1.80 percent. The Straits Times Index fell 40.82 points to 2,226.10.
KUALA LUMPUR: Down 0.14 percent. The Kuala Lumpur Composite Index lost 1.49 points to end at 1,044.48.
BANGKOK: Down 2.14 percent. The Stock Exchange of Thailand dropped 12.44 points to close at 569.85.
JAKARTA: Down 3.07 percent. The Jakarta Composite Index lost 60.64 points to 1,914.38.
MANILA: Down 1.73 percent. The composite index lost 41.82 points to 2,370.06.
WELLINGTON: Down 1.18 percent. The NZX-50 slipped 32.91 points to 2,762.01.
MUMBAI: Flat. The 30-share Sensex fell 2.21 points, or 0.02 percent, to 14,324.01, recovering from the days low of 14,016.95.