Asian markets tumble on economic concerns

Crude oil price settled lower at $58.02 a barrel, down 83 cents in New York trading on Wednesday, as worse than expected U.S. retail sales data and gloom on Wall Street more than outweighed the impact of a government report showing a surprise drop in U.S. crude and gasoline stockpiles.

A report from the U.S. Energy Information Administration showed that U.S. crude inventories fell by 4.7 million barrels; defying expectations for a 10th straight weekly build. In late Asian trading on Thursday, crude oil fell further below $57 a barrel after dismal economic data dampened investor optimism for economic recovery and energy demand.

Stocks on Wall Street saw substantial weakness during trading on Wednesday, as disappointing retail sales offset some of the recent optimism about the outlook for the economy. The major averages closed firmly negative, with the Nasdaq ending the session at its worst level of the day. The Dow Jones Industrial Average fell 2.18%, the Nasdaq Composite tumbled 3.01% and the S&P 500 index moved down 2.69%.

A report from the Commerce Department showed that retail sales unexpectedly fell 0.4 percent in April following a revised 1.3 percent decrease in March. Economists had expected sales to come in unchanged compared to the 1.2 percent decrease originally reported for the previous month. A separate report from the Commerce Department showed a continued decrease in business inventories in the month of March. The report showed that business inventories fell 1.0 percent in March following a revised 1.4 percent decrease in February.

Economic data is likely to remain in focus on Thursday. Traders are likely to keep a close eye on the Labor Department's weekly jobless claims report along with its report on wholesale price inflation for the month of April.

The Japanese market closed sharply lower after gloomy economic data in the U.S. dampened investor sentiment and the strengthening of the Japanese yen clouded the earnings of Japanese exporters. The benchmark Nikkei 225 index fell 247 points or 2.64% to 9,094, the lowest closing in about two weeks. Likewise, the broader Topix index of all First Section issues on the Tokyo Stock Exchange moved down 26 points or 2.94% to 863, the lowest closing since May 1.

Financials came under significant selling pressure. Mitsubishi UFJ Financial Group slumped 5.92%, Sumitomo Mitsui Financial Group fell 3.09%, Mizuho Financial Group plummeted 5.69% and Resona Holdings lost 2.25%.

Insurer Mitsui Sumitomo Insurance fell 3.89% and Sompo Japan Insurance tumbled 4.28%. Among brokerages, Nomura Holdings tumbled 4.87%, Daiwa Securities Group plummeted 6.81% and T&D Holdings lost 6.27%.

Automakers and high-technology stocks closed weaker. Honda Motor fell 3.54%, Suzuki slipped 1.63%, Toyota tumbled 4.10%, Nissan slumped nearly 6% and Mazda Motor plummeted 6.64%.