AFP, Hong Kong :
Asian shares and the dollar sank Friday on growing concerns about the global economy while the head of the IMF warned the eurozone could slip into recession if governments do not act.
Investors took their lead from a heavy sell-off on Wall Street, which wiped out the previous day’s Federal Reserve-fuelled gains. Fears of a fall-off in demand also sent oil traders fleeing, pushing Brent crude prices to a four-year low.
Tokyo tumbled 1.15 percent, or 178.38 points, to 15,300.55, Sydney shed 2.05 percent, or 108.38 points, to 5,188.3 and Seoul slipped 1.24 percent, or 24.33 points, to 1,940.92.
Hong Kong shed 1.90 percent, or 445.99 points, to 23,088.54 while Shanghai eased 0.62 percent, or 14.83 points, to 2,374.54.
Taipei was closed for a public holiday.
Markets surged after minutes released Wednesday from the Fed’s most recent meeting indicated policymakers could refrain from hiking US interest rates any time soon as global economic and geopolitical woes were offsetting a domestic recovery.
That came as a relief to dealers who had come to expect a rise before the bank’s mid-2015 timetable.
However, that elation was erased late Thursday after another round of negative eurozone data, including a 5.8 percent slump in German exports in August. Leading German think tanks also slashed their growth forecasts for the eurozone’s largest economy.
“Overriding everything is just the concern that European growth is weak and getting weaker,” said William Lynch of Hinsdale Associates.
On Wall Street the Dow tumbled 1.97 percent, the S&P 500 shed 2.07 percent and the Nasdaq sank 2.02 percent.
The dollar, which touched a six-year high above 110 yen last week, was struggling at 107.80 yen in Asia Friday, compared with 107.84 yen late in New York. The euro fetched 136.86 yen against 136.87 yen in US trade and well down from the 137.70 yen seen earlier Thursday in Tokyo.
The Japanese currency, a safe haven investment, has spiked as traders look to protect their cash.
The euro also bought $1.2670 against $1.2691.
Oil prices were hit by demand worries. US benchmark West Texas Intermediate for November delivery was down $1.92 at $83.85, its weakest since June 2012. Brent crude fell $1.65 to $88.40, levels last seen in November 2010.
Gold was at $1,219.71 an ounce against $1,230.80 late Thursday.
