Asian markets slump on Wall Street sell-off

A pedestrian walks past an electronic stock display at a security company in Tokyo. Japan’s Nikkei index closed down 4.18% at 14,008.47 points yesterday.AFP/TokyoAsian markets slumped yesterday – led by a 4% fall in Tokyo – following a huge sell-off on Wall Street as disappointing US manufacturing data compounded already deep fears about emerging markets. Traders were also spooked by a warning from Treasury Secretary Jacob Lew, who warned that the US borrowing limit will be reached on Friday, renewing fears of a Washington stand-off and possible default. Tokyo dived 4.18%, or 610.66 points, to 14,008.47. The losses leave the Nikkei 14% down since the start of the year, having surged 57% in 2013 to mark its best year in four decades. Seoul fell 1.73%, or 33.11 points at 1,886.85 and Sydney lost 1.75%, or 90.8 points, to 5,097.1. Hong Kong plunged 2.89%, or 637.65 points, to 21,397.77. Chinese tech giant Lenovo dived 16.40% on fears it may have bitten off more than it can chew with the purchase last week of struggling Motorola from Google for $2.91bn. The firm slumped more than 8% on Thursday in response to the news, before the stock market closed for the Lunar New Year holiday. Shanghai and Taipei were closed for the Lunar New Year holiday. In other markets, Wellington was 0.97%, or 46.88 points, lower at 4,802.62; Manila shed 2.15%, or 129.29 points, to 5,886.01; Kuala Lumpur lost 1.40%, or 25.20 points, to 1,778.83; Jakarta fell 0.78%, or 34points, to 4,352.26; Singapore closed down 0.84%, or 25.15 points, at 2,965.80 and Bangkok fell 1.24%, or 15.97 points, to close at 1,276.84. In currency dealing the greenback edged up against the yen after tanking to levels not seen since the start of December. The dollar was at 101.26 yen yesterday, from 100.94 yen late in New York and sharply down from 102.31 yen in Tokyo earlier Monday. Oil prices were higher. US benchmark West Texas Intermediate for delivery in March gained 19 cents to $96.62 and Brent North Sea crude for March was down 14 cents at $105.90.