Asian stocks staged a retreat Thursday as lingering fears about the global financial markets and a weakening U.S. dollar triggered a wave of selling, sending indexes across the region sharply lower.
The Nikkei 225 index tumbled 3.3 percent to 12,433.4, its lowest in 2 1/2 years; In Hong Kong, the Hang Seng Index fell 4.8 percent to 22,301.6.
In Tokyo, traders were alarmed by the yen's recent surge against the dollar, which erodes overseas earnings at the country's key exporters. Toyota Motor Corp. and Honda Motor Co. fell 3 percent and 4.2 percent respectively. Sony Corp. shares sank 4 percent.
Japanese financial shares were also hit hard, with Mizuho Financial Group and Mitsubishi UFJ Financial Group each dropping 6.8 percent, and Sumitomo Mitsui Financial Group skidding 7.3 percent.
Meanwhile, commodity-related stocks rose, sidestepping the overall market decline as crude futures traded near the overnight record high. Inpex Holdings rose 5.1 percent and Showa Shell added 3.2 percent.
China's Shanghai Composite fell 2.4% to 3,971.26, ending below the 4,000-point level for the first time since July, on worries the country's central bank could further increase interest rates and banks' reserve requirements to control soaring consumer prices.
Elsewhere:
Australia's S&P/ASX 200 fell 2.3% to 5,135.90, a day after it jumped 2.4%.
South Korea's Kospi declined 2.6% to 1,615.62.
Taiwan's Weighted index lost 2.7% to 8,210.99.
with files from other services
