Stocks decline for 2nd day

World stock markets dropped for a second day yesterday, with Tokyo tumbling about 3 percent, after a dismal start to the US earnings season dampened hopes that the worst of the economic slump is over.

Investors in Asia unloaded shares across most industries - from financials to energy firms and airlines - after more weakness on Wall Street that stirred talk of an end to the huge, monthlong advance in global equities since March.

But traders became defensive again as US firms began releasing their first-quarter results, with giant aluminum maker Alcoa reporting a wider-than-expected loss as prices for the lightweight metal plunged amid softening demand. It was a bleak opening to the earnings period - and added to anxiety that the recession's toll on major companies could be worse than many already fear.