World stocks tumble
World stock markets tumbled Tuesday, dragged down by heavy losses the previous day on Wall Street after the United States confirmed it was in recession and a raft of grim data suggested worse lay around the corner.
A steep interest rate cut by Australia's central bank and fresh steps by Japan to tackle the credit crunch failed to soothe investor fears.
Stocks slumped in Asia, with Tokyo closing down 6.35 percent, Hong Kong sliding 5.0 percent, Seoul shedding 3.3 percent and Sydney sliding 4.2.
In early European trade, London was down 1.43 percent, Frankfurt lost 1.60 percent and Paris fell 1.41.
"We believe that last week's stock rally went too far and markets were ripe for a correction," said Dariusz Kowalczyk, chief investment strategist at CFC Seymour in Hong Kong.
"The reason for the rebound in risk aversion was dismal data from across the globe, mostly regarding the manufacturing sector in November," he said.
US manufacturing slumped to a 26-year low in November, highlighting the abrupt downturn in the world's biggest economy, a survey showed.