Asian indices slump on fear of recession; Nikkei plunges nearly 2%

Asian markets sank on Thursday, after the Dow suffered its worst day of the year. Fears of a global recession mounted, causing investors to flee equities. Tokyo's key Nikkei plunged nearly 2 per cent at the open before recovering slightly to finish the morning 1.2 per cent down.

The losses followed a dark day on European bourses and on Wall Street, with all three US benchmarks tumbling around 3 per cent and US bond yields plunging, as investors deserted stocks for safer treasury assets. Weeks of pro-democracy protests in Hong Kong have added to the climate of uncertainty. Shanghai and Jakarta fell 0.7 per cent, while Sydney plummeted more than 2 per cent. Singapore also shed 0.9 per cent. However, Hong Kong edged up 0.1 per cent after opening 1.5 per cent down.