Asian markets continue to lose ground led by Japan, Hong Kong (AP) (18-06-2009)

HONG KONG - Asian stocks continued losing for a fourth day on Thursday amid a growing belief the markets were due for a reality check after the recent surge.

Investors have become skeptical about the staying power of a massive spring rally amid signs that global industrial production and demand, while stabilizing, may still be far from lifting the economy out of its worst recession in decades.

Overnight weakness on Wall Street, as well as the urge to take some profits after months of gains as the second quarter closes out, only encouraged traders to sell more.

Japan's Nikkei 225 stock average shed 170.89, or 1.7 percent, to 9,669.96, and Hong Kong's Hang Seng dropped 356.52, or 2 percent, to 17,728.08. South Korea's Kospi lost 1.2 percent, Australia's key index was down 0.5 percent and Taiwan's benchmark pulled back 0.8 percent. But Shanghai's benchmark added 1.3 percent, as the World Bank raised its 2009 economic growth forecast for the world's third-largest economy from 6.5 percent to 7.2 percent.

Oil prices lingered near $71 a barrel Thursday in Asia, with benchmark crude for July delivery off 10 cents to $70.93 a barrel. The contract rose 56 cents overnight.

The dollar was slightly lower at 95.75 yen from 95.87 yen. The euro declined to $1.3931 from $1.3970.

Source: AP