Markets head south on concerns over China slowdown and US tapering

PETALING JAYA: Asian stock markets sank deeper into the red yesterday as weak factory output data in the United States and China sowed fresh doubts on investors’ minds about the health of the global economy even as the US Federal Reserve continues to reduce its stimulus programme.

Stocks in Japan, Asia’s best-performing market last year, took a pounding yesterday as the Nikkei 225 Average plunged 4.18% to 14,008 points – its lowest since August last year. The huge one-day drop put the index firmly in correction territory after it fell 14% from a recent peak of 16,291 points on Dec 30.