Asian markets slide as economic gloom deepens

TOKYO: Asian stocks tumbled Thursday as global economic gloom deepened following a plunge in Japanese exports and a warning from the Federal Reserve that the United States could be in recession next year.Fears of an implosion of the US car industry continued to weigh heavily on investors' minds as the "Big Three" begged for government aid to survive the worst financial crisis since the Great Depression in the 1930s.Japanese exports dropped at the fastest pace in almost seven years, pushing Asia's largest economy deeper into recession as the global economic slump curbs international trade flows.Dealers' screens around Asia were flashing red. Stocks dropped 4.3 percent in Tokyo, 5.1 percent in Hong Kong and 4.9 percent in Seoul in early trade. Overnight on Wall Street the Dow Jones Industrial Average sank 5.07 percent, hitting the lowest level since March 2003."Investors tend to react nervously to negative data signalling recession," said Kazuhiro Takahashi at Daiwa Securities SMBC. "There is also caution regarding a possible bailout of the Big Three. It has not taken a concrete shape yet and there are fears that the negotiations may fail."