Asian markets continue big falls

The Asian share falls follow after declines in the US and Europe

Asian shares fell in Tuesday trading, echoing declines seen in both the US and Europe on Monday following a downbeat World Bank report.

Japan's main Nikkei index ended 2.8% lower, while Hong Kong's Hang Seng lost 2.9%, after the World Bank study said emerging economies were slowing.

The report also hit global oil and metal prices, with firms in those sectors leading the share falls.

US light crude was down 85 cents to $66.65 a barrel in Tuesday trading.

On Monday it had fallen by $2.76 a barrel. London's Brent crude also continued to slide, dropping a further 83 cents to $66.15.

The US's Dow Jones share index fell 2.4% on Monday, while the UK's FTSE 100 index shed 2.6%.

'Surprised people'

The World Bank said it expected GDP in developing countries to grow by just 1.2% this year, compared with 5.9% in 2008 and 8.1% in 2007.

Australian shares were also lower on Tuesday, with the main index there dropping 3%.

Energy analyst Ben Westmore of National Australia Bank in Melbourne said the World Bank report had come as an unpleasant surprise.

"Financial markets were expecting a quicker recovery [to the global economy], so for the World Bank to make such a large revision down surprised people," he said.