On Monday most Asian stock market indicators slumped as new figures revealed Japan's economy contracted the most in 35 years and Group of Seven finance ministers warned the global decline is likely to continue through most of the year.
The news out of Japan, worse than many forecasts, was a sobering reminder of the toll on Asia's export-driven countries as world demand collapses amid the worst economic downturn in decades. According to the government, the world's second-biggest economy shrank at an annual pace of 12.7 percent last quarter.
To top the gloomy forecast news, investors also seemed disappointed after finance chiefs from the Group of Seven finance ministers finished their meeting with pledges to work together to boost growth and unemployment but without any concrete measures.
The number of international investors believing that governments are not doing enough to come up with a solution to the credit crisis continues to increase.
The global recession is deeper than anticipated. At the same time policy makers are failing to deliver measures to address the problems, Dariusz Kowalczyk, chief investment strategist for SJS Markets in Hong Kong, the Associated Press reported. It seems that what they're doing is too little too late.
Japan's Nikkei 225 stock average lost 41.84 points, or 0.5 percent, to 7,737.56, and Hong Kong's Hang Seng Index dropped 275.65 points, or 2 percent, to 13,279.02. South Korea's Kospi lost 0.8 percent to 1,182.39.
Singapore and Australian markets also declined. Benchmarks however in Shanghai and Taiwan gained.
In Japan, exporters were down on data showing the economy sank deeper into recession.
With the current results, Japan has seen the sharpest drop since 1974 oil shock with outpaced declines of 3.8 percent in the U.S. and 1.2 percent in the euro zone.