(Agencies)
Updated: 2008-03-03 14:09

SEOUL, South Korea -- Asian markets tumbled Monday morning as investors reacted nervously to a steep decline on Wall Street Friday after disappointing economic and corporate news reawakened worries about a US recession.

Japan's benchmark index sank 4 percent, while Australia's market fell 3 percent and key indices in South Korea and Hong Kong were down nearly that much.

Passersby walks past an electric market board in Tokyo, Monday, March 3, 2008. Asian markets tumbled Monday morning as investors reacted nervously to a steep decline on Wall Street Friday after disappointing economic and corporate news reawakened worries about a US recession. [Agencies]

Investors in Asia dumped shares after a series of depressing economic and corporate reports Friday out of the United States -- a vital export market for Asia -- sent the Dow Jones industrial average falling 315.79, or 2.51 percent, to 12,266.39.

The bad news included poor quarterly results from American International Group Inc and Dell Inc and weaker-than-expected results on the Chicago purchasing managers index.

In Tokyo, the benchmark Nikkei 225 stock index lost 4.01 percent to 13,057.09 points by midday.

Japanese stocks were also pushed down by the dollar's slide against the yen, which erodes earnings at the nation's vital exporters. The dollar fell to 102.92 yen, its lowest point in three years. By late morning in Tokyo, the dollar bought 103.04 yen, down from 103.96 yen late Friday in New York.

Asian markets, which have fallen much of the year so far, had staged a modest recovery through the middle of last week, but pessimism returned late last week and Monday.

Hong Kong's blue chip Hang Seng index plunged more than 3 percent at the opening. By late morning, it was down 2.6 percent at 23,698.65.

In Seoul, the Korea Composite Stock Price Index was down 2.9 percent to 1,662.29 in late morning trading. And in Sydney, the benchmark S&P/ASX200 index was down 3.1 percent to 5,401.2.