Asian markets slump on pessimism over corporate earnings

Tokyo: Asian markets have veered sharply lower, with Tokyo's Nikkei index tumbling nearly 7 per cent, amid spreading pessimism over corporate earnings outlooks in the US and at home.

Asian markets opened lower on Wednesday after an overnight decline on Wall Street and extended losses as the day progressed.

Japan's Nikkei 225 stock average fell for the first time in three days, dropping 631.56 points, or 6.79 per cent, to 8,674.69. Hong Kong's Hang Seng was down 5.07 per cent in afternoon trading, while South Korea's main index closed 5.14 per cent lower.

Particularly hard hit were Japan's megabanks, which slumped after The Nikkei financial daily reported that Mitsubishi UFJ would miss its net profit projection for the April-September period by about two-thirds.