Asia stocks took yet another dive on Tuesday, as fearful investors cut their losses amid a broad regional slump.
Japan's benchmark Nikkei index fell 4.2%, extending its tumble this year to just over 14%.
The slide has put the index well into correction territory, and erased a big chunk of last year's stunning 57% gain.The sell-off has been fueled in part by a stronger Japanese yen, which has gained about 3.7% this year after hitting a five-year low in January.
The Australia ASX All Ordinaries dropped 1.7% and Hong Kong's Hang Seng lost almost 3% as it pushed into a correction. The trouble in Asia follows a dismal performance Monday for U.S. stocks.
The Dow tumbled 326 points, or almost 2.1%, while the S&P 500 and Nasdaq were also down more than 2%.
A much worse-than-expected reading on manufacturing activity in the U.S. was the catalyst for investor discomfort on Monday. World markets -- particularly in developing economies -- have been volatile in recent weeks as concerns bubble over global economic health.
Investors have been pulling out of emerging markets this year now that the U.S. Federal Reserve has begun to scale back its bond buying. The bet is that higher rates in the U.S. and a stronger dollar will make emerging market investments far less attractive.
Recent weeks have been marred by growing fragility in Turkey, India, Brazil, Indonesia and South Africa, as those countries have depended on foreign investment to finance imports.
All are set to hold elections this year, promising months of political uncertainty and little impetus for reform. Weakness in China's important manufacturing sector has only added to worries.
Many emerging economies have benefited over the past few years as the Fed and other central banks have pumped money into the global economy.
Investors yanked more than $6.3 billion from emerging market equity funds last week, the largest outflow on record in dollar terms, according to Boston-based fund tracker EPFR Global.
cnn.com
The slide has put the index well into correction territory, and erased a big chunk of last year's stunning 57% gain.The sell-off has been fueled in part by a stronger Japanese yen, which has gained about 3.7% this year after hitting a five-year low in January.
The Australia ASX All Ordinaries dropped 1.7% and Hong Kong's Hang Seng lost almost 3% as it pushed into a correction. The trouble in Asia follows a dismal performance Monday for U.S. stocks.
The Dow tumbled 326 points, or almost 2.1%, while the S&P 500 and Nasdaq were also down more than 2%.
A much worse-than-expected reading on manufacturing activity in the U.S. was the catalyst for investor discomfort on Monday. World markets -- particularly in developing economies -- have been volatile in recent weeks as concerns bubble over global economic health.
Investors have been pulling out of emerging markets this year now that the U.S. Federal Reserve has begun to scale back its bond buying. The bet is that higher rates in the U.S. and a stronger dollar will make emerging market investments far less attractive.
Recent weeks have been marred by growing fragility in Turkey, India, Brazil, Indonesia and South Africa, as those countries have depended on foreign investment to finance imports.
All are set to hold elections this year, promising months of political uncertainty and little impetus for reform. Weakness in China's important manufacturing sector has only added to worries.
Many emerging economies have benefited over the past few years as the Fed and other central banks have pumped money into the global economy.
Investors yanked more than $6.3 billion from emerging market equity funds last week, the largest outflow on record in dollar terms, according to Boston-based fund tracker EPFR Global.
cnn.com
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