Asian markets follow the Dow down on the grim economic outlook (AP) (02-12-2008)

TOKYO (AP) -- Gloom and doom reigned over Asian markets Tuesday as investors sold off stocks following huge overnight losses on Wall Street and dismal economic data out of the U.S., a crucial export market. Falling metal and other resource prices also contributed to the drop.

Japan's Nikkei 225 stock average tumbled 533.53 points, or 6.4%, to 7,863.69, and Hong Kong's Hang Seng index lost 5% to 13,401.73.

Global markets had rallied last week, but any nascent investor confidence quickly wilted after grim U.S. economic data sent the Dow Jones industrial average plummeting nearly 700 points -- or 7.7% -- Monday, wiping out more than half of last week's big gains.

Australia's central bank slashed its key interest rate Monday a full pecentage point to 4.25% as it tries to prevent the economy from sliding into recession. But investors took scant comfort from the move, and the benchmark S&P/ASX 200 index fell 4.2% at 3,528.2.

While markets in mainland China and Singapore edged up, key indices in the Philippines, Taiwan, India and South Korea dropped sharply.

Japanese exporters have been hurting from the yen's renewed appreciation, which erodes their overseas earnings. The dollar was trading at 93.15 yen from 93.18 late Monday. The euro stood at $1.2608 from $1.2597.

U.S. stock index futures were up modestly, suggesting Wall Street would bounce back Tuesday. Dow futures were up 33 points, or 0.4%, to 8,172, while S&P 500 futures were up 2.3 points, or 0.3%, to 818.1.

The bleak outlook for the U.S. economy drove oil prices fell below $48 a barrel in Asian electronic trading. Light, sweet crude for January delivery was down $1.53 to $47.75 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Singapore.

.Source: AP