Asian stock markets plunged Friday after more bad news on the U.S. economy, a vital export market, triggered a broad sell-off on Wall Street overnight, AP reported. Disappointing reports on U.S. retail sales and jobless claims undercut hopes for a late-year recovery in the U.S. and depressed investor sentiment across Asia. In Japan, the benchmark Nikkei 225 index closed down 2.75 percent at 12,212.23. Hong Kong's Hang Seng index tumbled 3.1 percent to 19,752.65, dropping below the key psychological level of 20,000 to its lowest point in more than a year. Markets in mainland China, India, Australia and Singapore were also down more than 2 percent. Pessimism permeated markets as they nervously awaited the August U.S. employment report later Friday. News Thursday from major U.S. retailers that shoppers curtailed their spending last month helped send the Dow Jones industrial average down 344.65 points, or 2.99 percent, to 11,188.23. Investors bracing for weak U.S. jobs figures fueled selling in Japan, said Masaru Ohnishi, equity strategist at JP Morgan Securities in Tokyo. But because markets have already fallen so sharply, they are «likely to rebound if results are good,» Ohnishi said. «And even if the data are weak, U.S. markets are unlikely to fall that much further on Friday.» A drop in the dollar against the yen overnight contributed to the malaise, pummeling major Japanese exporters. The dollar fell to 106.59 yen Friday afternoon in Asia; on Thursday in Tokyo it was trading above 108 yen. Toyota Motor Corp. retreated nearly 2.5 percent, and Nissan Motor Co. tumbled 3.6 percent. Sony Corp. dived 4.2 percent to after the consumer electronics maker announced Thursday it is recalling 440,000 Vaio laptop computers worldwide due to a wiring flaw that could cause overheating. Sony said the recall involves 19 models in the Vaio TZ series manufactured between May 2007 and July 2008. Investors in Hong Kong sent Chinese commodity producers spiraling, with Angang Steel losing 5.3 percent and Aluminum Corp. of China, or Chalco, down 3.9 percent early Friday afternoon. Telecoms such as heavyweight China Mobile, down 3.3 percent, also took a beating. Inflation continues to be a major concern in Asia, with the Philippines reporting Friday that the August consumer price index rose 12.5 percent from a year ago, the highest in nearly 17 years. The local stock index fell 1 percent to 2,724.72.
