(MENAFN- AFP) Asian shares slumped on Friday, tumbling further into the red after weak manufacturing data from China added to fears about the health of the world economy.
The dollar notched more losses, down more than two cents against the euro from where it stood before minutes from the US Federal Reserve dampened hopes for a rate rise next month.
Tokyo shares slumped 2.98 percent, or 597.69 points, to finish at 19,435.83, a three-month low and down 5.28 percent on the week.
Seoul fell 2.01 percent, or 38.48 points, to 1,876.07 as tensions climbed with North Korea, and Sydney dropped 1.40 percent, or 73.98 points, to close at 5,214.60.
Shanghai lost 2.46 percent in afternoon trading, heading for its worst weekly rout in four years after a survey showed manufacturing activity hit a 77-month low in August.
Hong Kong fell 2.05 percent, heading for its fifth day of losses after the benchmark index entered a bear market, down more than 20 percent from its April peak.
"Global markets are in panic mode as the full scale of China's slowdown becomes clearer and the market pricing for a Fed September rate hike is unwound," said Angus Nicholson at IG Markets.
"China's currency devaluation, further stock market declines, and now another weak PMI appear to have put it front-and-centre in investors' minds."
US shares sank more than 2.0 percent Thursday, with the Dow dropping to its lowest level for 2015 as worries spread about the strength of the world economy.
Gold gained as investors looked for safer bets, rising to $1,161.68 in Asia compared to $1,138.80 late Thursday.
- Sea of red -
Market sentiment has nosedived since China's central bank devalued its currency last week in a surprise move widely seen as aimed at boosting the country's flagging exports.
Stoking concerns, the preliminary reading of Caixin's Purchasing Manager's Index (PMI) came in at 47.1 this month, its worst reading since March 2009 and significantly below analysts' forecasts.
The news sent Shanghai stocks plunging to lows not seen since before Beijing launched a huge rescue package last month to stop a rout that wiped some four trillion yuan off the benchmark.
"The (Chinese) economy continues to be on a downward trend and it's not likely to pick up soon as there's no clear driver for growth," said We Wei, an analyst at Huaxi Securities in Shanghai.
"The stock market may drop further to seek a lower support," he told Bloomberg News.
Commodity shares continued their slide as concerns about a slowdown in China, the world's top importer of industrial metals and energy, continued to weigh.
A slump in raw materials prices has wiped off some $2 trillion from commodity stocks since the middle of last year.
US benchmark West Texas Intermediate (WTI) for October delivery, a new contract, lost 54 cents to $40.78 a barrel in afternoon trade, while Brent crude for October tumbled 62 cents to $46.00 a barrel.
The WTI September contract closed 34 cents higher at $41.14 in New York on Thursday, marginally higher than recent six and a half year lows.
Analysts said oil held above the key $40 a barrel level thanks to a weaker greenback, which makes it cheaper for international investors to buy dollar-denominated oil.
Investors will be watching the weekly US oil rig count, due out on Friday, to see if a slump in crude prices has started to dampen production in the world's top economy.
In currency markets, the dollar stood at 122.92 yen, down from 123.38 yen in New York on Thursday.
The euro rose to $1.1284 and 138.68 yen, compared with $1.1241 and 138.69 yen in New York.
In other markets:
-- Wellington rose 0.13 percent, or 7.71 points, to 5,751.19.
Telecoms giant Spark New Zealand gained 9.42 percent to NZ$3.02 after they increased shareholder dividends. Fletcher Building was down 1.57 percent at $7.53
-- Taipei fell 3.02 percent, or 242.89 points, to 7,786.92.
Taiwan Semiconductor Manufacturing Co shed 3.97 percent to Tw$121.0 while Fubon Financial Holding lost 3.02 percent to Tw$49.85.
Financial markets in Manila are closed for a public holiday.
-- Bloomberg News contributed to this article --
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