TOKYO, Aug. 5 (UPI) -- Asian stocks were hammered Friday as investors sold off in reaction to the 512-point plunge on the New York Stock Exchange the previous day.
Major Asian stock exchanges never fully recovered from their losses that began right after the opening bell. Investors rushed to the sidelines as global concerns mounted over the United States economy and the debt crisis in Europe.
The benchmark Nikkei-225 Index on the Tokyo Stock Exchange, which set the tone for Friday's Asian proceedings, plunged 360 points, or 3.7 percent, to close at 9,299 points. The U.S. dollar rose to about 79 yen in early action in response to the Japanese intervention in the currency markets the previous day to rein in the surging yen, but lost steam and had dropped to the 78-yen range.
Hong Kong's blue chip Hang Seng Index also was pounded, losing 939 points, or 3.7 percent, to close at 20,946 points.
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South Korea's Kospi Index also fell 3.7 percent to close at 1,944 points. Australia's All Ordinaries Index closed at 4,170 points, down 4.2 percent.
India's exchanges recovered from earlier lows, encouraged partially by some reports the Dow and other indices were expected to show some strength when markets opened in New York.
The Bombay Stock Exchange's 30-stock Sensex ended the day down 372 points, or 2.1 percent, to 17,321 after hitting a low of 16,990. The National Stock Exchange's Nifty also came back from the day's low of 5,116 to close at 5,224, down 108 points, or 2.02 percent.
Investors remained concerned about a global recession.
"The conventional wisdom on Wall Street was that the economy was growing -- that the worst was behind us," Peter Schiff, president of Euro Pacific Capital, said in a CNN report. "Now what people are realizing is the stimulus didn't work and we may be headed back to recession."
