Asian Stocks Slide on U.S. Consumer Confidence Drop

Asian stock markets slid Wednesday after a plunge in American consumer confidence magnified worries about the U.S. recovery.

Losses in most regional markets, which tracked declines in U.S. and European stocks overnight, followed a two-day advance. The dollar weakened against the yen and euro, while oil prices rose above $79 a barrel.

Sellers were emboldened by news a key measure of U.S. consumer confidence dropped sharply.

The dive in the U.S. Conference Board index to 46 in February from 56.5 last month suggested the world’s largest economy will heal at a slower pace than expected. Consumer spending accounts for about 70 percent of U.S. economic activity, making the financial health of ordinary Americans critical to any lasting rebound.

Fresh anxiety about the U.S. overshadowed new signs international trade was picking up. Japan’s exports jumped more than 40 percent last month from a year earlier, fueled by robust demand for vehicles and high-tech goods in Asia.

In Tokyo, the Nikkei 225 stock average fell 188.82 points, or 1.8 percent, to 10,163.28. Hong Kong’s Hang Seng was down 1 percent at 20,421.13 and South Korea’s Kospi dropped 1.1 percent to 1,611.84.

Australia’s market fell 1.5 percent, Shanghai was down 0.1 percent and Singapore lost 1 percent.

In oil, the benchmark contract added 36 cents to $79.22 after shedding $1.45 overnight.

The dollar was down slightly at 90.19 yen from 90.21 yen. The euro rose to $1.3538 from $1.3509.

In the U.S. Tuesday, the Dow fell 100.97, or 1 percent, to 10,292.41 after being up around 19 before the consumer confidence index was released.

The Standard & Poor’s 500 index dropped 13.41, or 1.2 percent, to 1,094.60, while the Nasdaq composite index fell 28.59, or 1.3 percent, to 2,213.44.

2/23/2010 10:48 PM HONG KONG (AP)