Asian markets slump on falling oil, metal prices

Asian markets tumbled Wednesday, along with commodity prices and hopes for a rapid recovery of the global economy.

The pessimism permeated stock exchanges throughout the region, with several losing more than 2 percent in early afternoon trading. Oil prices slid to near $62 a barrel.

Japan's benchmark Nikkei 225 stock average extended its losing streak to a sixth day, falling 2.2 percent to 9,434.91, after worse-than-expected machinery orders data disappointed investors and fanned concerns about the fragility of the world's second-biggest economy.

The country's core machinery orders, a closely watched indicator of spending on equipment and factories, fell 3 percent in May from a month earlier. That was far less than economists' expectations for a 1.8 percent rise and marked the lowest value on record since the government began compiling comparable data in April 1987.

A recovery in capital spending "remains distant," especially with Japan's high dependence on exports, said Chiwoong Lee, an economist at Goldman Sachs in Tokyo.

In Hong Kong, the Hang Seng index slid 301 points, or 1.7 percent, to 17,560.97, while South Korea's Kospi lost 0.9 percent to 1,421.16. Australia's key stock measure fell 0.5 percent, while mainland China's Shanghai Composite index _ the world's best-performing index this year _ tumbled 2.2 percent.

Investor confidence has waned after poor U.S. and European jobs data and plunging commodities prices. Oil prices have declined to near $62 a barrel from $73 last week amid growing concerns about a slower-than-expected global recovery.

Prices for other commodities from metals to soybeans have also headed south, putting an even greater drag on stock markets.

In Japan, steelmaker JFE Holdings Inc. plunged 5.1 percent and Nippon Mining Holdings Inc. fell 5.3 percent. Australian mining giant BHP Billiton Ltd. was off 1.8 percent in Sydney.

Recent economic data has stoked fears that the market might have gotten ahead of itself in March and April, when investors sent stocks soaring in hopes that the global recession will end some time this year.

On Tuesday, the Dow Jones industrial average fell 161.27, or 1.9 percent, to 8,163.60, the lowest finish for the blue chips since April 28. The S&P 500 fell 2 percent, while the Nasdaq sank 2.3 percent.

U.S. futures were down marginally, pointing to further declines Wednesday. Dow futures were down 21 points, or 0.3 percent, to 8,110, while S&P futures were down 1.3 points, or 0.2 percent, to 878.

Benchmark crude oil for August delivery fell 75 cents to $62.18 a barrel at midday in Singapore in electronic trading on the New York Mercantile Exchange.

The dollar slipped to 94.36 yen from 94.78 yen late Tuesday. The euro was lower at $1.3905 from $1.3918.