HONG KONG, July 8: Asian stocks tumbled Tuesday as concerns about the global credit squeeze and surging inflation flared again, with the G8 industrial powers warning soaring food and fuel prices threaten world growth.

Taiwanese shares fell the most, sliding nearly four per cent, closely followed by a slump of over three per cent in Hong Kong. South Korea was down nearly 3.0 per cent and Asia’s biggest bourse, Japan, skidded some 2.5 per cent.

The falls came after Wall Street retreated Monday on renewed fears about the global credit squeeze following the default crisis among so-called “subprime” -- or riskier -- US homeloans.

Investors were nervous ahead of key second quarter earnings reports from major US banks, which have lost billions of dollars on securities whose value is linked to subprime loans.

TOKYO: Japanese shares closed 2.45 per cent lower on fresh jitters over the US financial sector, after briefly falling below 13,000 for the first time in nearly three months, dealers said.

The Tokyo Stock Exchange’s benchmark Nikkei-225 index tumbled 326.94 points to end at 13,033.10, briefly falling below the psychologically important 13,000-level for the first time since April 15.

The broader Topix index of all first-section shares fell 29.29 points or 2.23 per cent to 1,283.51.

The Nikkei may find support above 12,890 if the Dow (Jones Industrial Average) holds above 10,800,” Yutaka Yoshino, a technical analyst at Nikko Citigroup, told Dow Jones Newswires.

HONG KONG: Hong Kong share prices tumbled to close down 3.16 per cent, dealers said.The Hang Seng Index ended down 692.25 points at 21,220.81. Turnover was 63.74 billion Hong Kong dollars (8.17 billion US).

Investors don’t have confidence to hold stocks for any period of time given the continued volatility in global markets,” Ben Kwong, chief operating officer at KGI Asia, told Dow Jones Newswires.

SYDNEY: Australian shares closed down 1.4 per cent, dealers said.

The benchmark S&P/ASX 200 index was down 69.6 points at 4,932.9, its weakest close since August 2006, while the broader All Ordinaries fell 69.3 points to 5022.4. Volume was 5.0 billion dollars (US$4.8 billion).

Among major banks, ANZ lost 60 cents to $18.60. Investment firm Babcock & Brown dropped 6.5 per cent to 6.51. Allco Finance Group added 4.4 per cent to 36 cents after selling its interest in Singapore real estate assets.

SINGAPORE: Singapore share prices closed 1.62 per cent lower, dealers said.

The blue-chip Straits Times Index fell 47.50 points to 2,886.62. Volume totalled 1.12 billion shares worth 1.28 billion Singapore dollars (941 million US).

Singapore Airlines dropped six cents to 14.36 Singapore dollars. Singapore Telecommunications was off one cent at 3.51.

Neptune Orient Lines was one of the key decliners, skidding 19 cents to 2.98.

KUALA LUMPUR: Malaysian share prices closed down 0.5 per cent, dealers said.

The Kuala Lumpur Composite Index dropped 6.01 points to 1,121.25.

Sime Darby lost 3.5 per cent at 8.35 ringgit. Tenaga was up 0.7 per cent at 7.75 ringgit. Maybank gained 0.7 per cent at 7.0 ringgit.

JAKARTA: Indonesian shares closed 1.1 per cent lower, dealers said.

The Jakarta Composite Index dropped 24.85 points to 2,278.97.

A trader told Dow Jones Newswires that banking shares pulled the index up from an intra-day low of 2,263.77.

Buying in most bank blue-chips... lifted the main index from its low, he said.

WELLINGTON: New Zealand shares closed up 1.25 per cent, dealers said.

The NZX-50 gross index rose 39.14 points to close at 3,160.59.

It’s really only the quality stocks that are coming in for attention,said Grant Williamson of Hamilton Hindin Greene.

Fletcher Building climbed 31 cents to 6.53 dollars. Telecom rose nine cents to 3.47 dollars. Contact Energy gained 12 cents to 7.72.

MUMBAI: Indian shares closed 1.3 per cent lower, dealers said. The benchmark Mumbai 30-share Sensex index fell 176.34 points to 13,349.65.

Increasing global credit concerns pulled the markets down. We expect quarterly earnings to become the next trigger, said Advait Date, dealer with brokerage BHH Securities.—AFP