HONG KONG, Sept 16: Asian stocks slumped on Tuesday following the collapse of US investment bank Lehman Brothers, while governments tried make reassurances that their economies were sound.

Japanese shares dropped almost five per cent to close at a three-year low, while Hong Kong was off 5.4 per cent and Seoul lost more than six per cent.

Officials in Australia, Japan and elsewhere pledged to try to keep markets calm, with Tokyo injecting 2.5 trillion yen (24 billion dollars) into the markets.

But investors were faced with an array of bad news that went well beyond the fall of Lehman.

In Australia, where a surprise late rally kept the market’s losses to 1.4 per cent, Prime Minister Kevin Rudd met treasury officials and the head of the Reserve Bank of Australia.

Markets found no solace after news that two Japanese banks were among Lehman’s biggest lenders, one of which, Aozora, lost around 20 per cent of its share value.

However, Jakarta’s bourse finished the day one per cent higher after opening almost seven per cent down.

TOKYO: Japanese share prices plunged nearly five per cent, dealers said.

Banking shares were flooded with sell orders on news that two Japanese financial institutions were top lenders to Lehman Brothers.

The Tokyo Stock Exchange’s benchmark Nikkei-225 index fell 605.04 points or 4.95 per cent to 11,609.72, its lowest close since July 8, 2005.

The broader Topix index of all first-section shares plunged 59.63 points or 5.07 per cent to 1,117.57.

HONG KONG: Share prices closed down 5.4 per cent, dealers said.

The benchmark Hang Seng Index plunged 1,052.29 points to 18,300.61, its lowest closing level since October 2006. Turnover was 88.42 billion Hong Kong dollars (11.34 billion US).

Phillip Capital Management strategist Y.K. Chan said 18,000 is the key support for the index in the near term.

Chan said China’s surprise rate cut late Monday should be positive as it marks the end of credit tightening and the start of an easing cycle on the mainland.

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

The benchmark SP/ASX200 closed down 66.9 points at 4750.8, while the broader All Ordinaries dropped 75.2 points to end the day at 4799.8.

A total of 1.78 billion shares worth $7.02 billion (5.7 billion US) was traded, with 233 stocks up, 944 down and 243 unchanged.

It’s not quite as bad as people expected, but if you look at it over two days it’s pretty large money, said CMC Markets senior dealer James Foulsham.

Mining giant BHP Billiton gained 35 cents to 36.40 and Rio Tinto was up 42 cents to 106.85.

SINGAPORE: Singapore shares closed 1.01 per cent lower, dealers said.

But they said there was further downside risk and investors remained edgy with a close watch on the troubled US financial sector.

The blue-chip Straits Times Index closed down 25.12 points at 2,461.43 on volume of 1.37 billion shares worth 1.64 billion Singapore dollars (1.15 billion US). Decliners outnumbered rising stocks 404 to 184, with 760 issues even.

KUALA LUMPUR: Malaysian share prices ended 1.9 per cent lower, dealers said.

The Kuala Lumpur Composite Index fell 19.26 points to close at 1,012.37.

Plantation company IOI Corp ended down 4.7 per cent at 4.04 ringgit, Tenaga Nasional lost 5.8 at 6.50 ringgit and Malaysia’s largest lender Maybank shed 5.7 at 7.40 ringgit.

JAKARTA: Indonesian shares closed one per cent higher, dealers said.

The Jakarta Composite Index rose 16.39 points to end at 1,735.64 after tumbling more than seven per cent in early trade.

Coal miner Bumi fell 6.3 per cent to 3,275 rupiah.

WELLINGTON: New Zealand share prices fell 2.87 per cent, dealers said.

The benchmark NZX-50 index dropped 92.59 points to 3,227.30.

Finance Minister Michael Cullen said the economy was vulnerable to slower global growth, but the financial sector remained sound.

Market leader Telecom fell 13 cents to $2.80.

MUMBAI: Indian shares ended flat, dealers said.

The BSE benchmark 30-share Sensex index fell 12.47 points or 0.09 per cent to 13,518.8.

The benchmark Sensex has now fallen for six straight days.—AFP