HONG KONG, Aug 13: Asian shares closed mostly down on Wednesday as fears about the global credit squeeze flared anew, with Japan tumbling more than two percent after saying its economy had shrunk.

The Tokyo bourse fell 2.11 per cent after official data showed the Japanese economy had contracted in the second quarter.

Falling exports and weak consumer spending have put Asia’s largest economy on the brink of its first recession in six years.

The Sydney market closed two per cent down as Australia’s biggest bank, Commonwealth Bank of Australia, said its annual profit had risen seven percent but warned of an economic slowdown and continuing global credit squeeze.

Hong Kong slipped back 1.6 per cent and Taiwan ended little changed. The key bourses in China, South Korea and Singapore also finished in the red.

Among smaller markets, India fell 0.78 per cent as a government panel there said economic growth was likely to slow to 7.7 per cent in the current financial year.

High inflation and slowing economic growth in the wake of the US financial crisis and global credit crunch have vexed Asian investors in 2008, punishing the region’s stock markets.

TOKYO: Japanese share prices closed down 2.11 per cent, hit by renewed worries about the health of the world’s top banks and news of a contraction in the domestic economy, dealers said.

The Tokyo Stock Exchange’s benchmark Nikkei-225 index lost 280.55 points to end at 13,023.05. The broader Topix index of all first-section shares declined 24.94 points or 1.96 per cent to 1,246.48.

Investors started feeling jittery about the US financial sector again,Fumiyuki Nakanishi, a strategist at SMBC Friend Securities, told Dow Jones

HONG KONG: Hong Kong share prices closed down 1.6 per cent, dealers said.

The benchmark Hang Seng Index dropped 347.57 points at 21,293.32. Turnover was 69.32 billion Hong Kong dollars (8.88 billion US).

Mobile phone operator China Unicom was 4.3 per cent lower after announcing plans to spend up to 100 billion yuan (14.6 billion US dollars) on its third-generation services in 2009-2010.

HK Exchanges fell 3.1 percent after reporting a slightly lower-than-expected 28 percent rise in first-half net profit to $2.97 billion.

SYDNEY: Australian shares closed 2.0 per cent lower, dealers said.

The benchmark S&P/ASX 200 lost 102.0 points to close at 4,951.6 while the broader All Ordinaries shed 94.4 points to 4,995.9. Turnover was 1.2 billion shares worth 5.3 billion dollars (4.6 billion US).

ANZ fell 2.8 per cent to 16.99 dollars, National Australia Bank dropped 3.4 per cent to $25.58 and Westpac slid 4.0 per cent to $23.51.

KUALA LUMPUR: Malaysian share prices closed 0.6 per cent lower, dealers said.

The Kuala Lumpur Composite Index fell 6.25 points to close at 1,112.53.

Foreign funds were net sellers again today (Wednesday), one dealer told Dow Jones Newswires.

JAKARTA: Indonesian shares closed 0.3 per cent higher, dealers said.

The Jakarta Composite Index rose 5.94 points to 2,063.52.

Bank Mandiri rose 4.6 per cent to 2,875 rupiah, Bank Rakyat rose 4.3 per cent to 6,050 and Bank Central Asia rose 7.0 percent to 3,000.

WELLINGTON: New Zealand shares closed down 0.25 per cent, dealers said.

The benchmark NZX-50 index fell 8.39 points to 3,345.24.

Fletcher Building closed up 15 cents at $6.58 after announcing a profit slightly ahead of expectations.

MUMBAI: Indian shares closed down 0.78 per cent, dealers said.

The benchmark 30-share Sensex index fell 119.01 points to 15,093.12.—AFP