CANBERA (dpa-AFX) - Asian stocks fell broadly on Tuesday amid concerns about the global economic outlook after the International Monetary Fund (IMF) slashed its world economic forecast, citing a range of triggers beyond escalating trade tensions.
These potential triggers include a 'no-deal' Brexit for the U.K. and a deeper-than-envisaged slowdown in China.
The IMF now projects a 3.5 percent growth rate worldwide for 2019 and 3.6 percent for 2020, down 0.2 and 0.1 percentage points below its last forecasts in October.
Brexit worries also lingered as British Prime Minister Theresa May offered nothing new to break the political deadlock just 10 weeks before Britain leaves the EU.
China's Shanghai Composite index fell 30.81 points or 1.18 percent to 2,579.70 while Hong Kong's Hang Seng index closed at 27,005.45, down 191.09 points or 0.70 percent from its previous close.
Japanese shares gave up early gains to close lower as the yen strengthened on worries over slowing global growth, stalled Brexit talks and the ongoing U.S. government shutdown.
The benchmark Nikkei average declined 96.42 points or 0.47 percent to 20,622.91, while the broader Topix index closed 0.63 percent lower at 1,556.43.
Fanuc, Komatsu and Panasonic declined 2-3 percent. Zozo slumped 6.4 percent after reports that a number of shops were withdrawing from its online fashion shopping site.
Australian markets retreated after mining giant BHP reported a drop in second-quarter iron ore production and said it would take a $600 million hit due to production disruptions at its copper and iron ore operations.
The benchmark S&P/ASX 200 dropped 31.60 points or 0.54 percent to 5,858.80 while the broader All Ordinaries index ended down 29.20 points or 0.49 percent at 5,924.30.
BHP shares dropped 1.3 percent while rivals Rio Tinto and Fortescue Metals Group fell 0.6 percent and 1.7 percent, respectively.
The big four banks fell 1-2 percent. Energy stocks fell broadly despite higher oil prices. Oil Search tumbled as much as 2.8 percent while Woodside Petroleum, Santos and Origin Energy ended down between 0.6 percent and 0.8 percent.
Seoul stocks fell amid growth worries after China reported its weakest growth in nearly three decades and the IMF warned over the impact of trade tensions.
The benchmark Kospi slid 6.84 points or 0.32 percent to 2,117.77 despite GDP data for the fourth quarter of 2018 coming in above expectations.
Samsung Biologics, Samsung Group's health care unit, bucked the weak trend to end 1.8 percent higher after an administrative court suspended the execution of punitive action by the financial watchdog for alleged violation of accounting rules.
New Zealand shares fell modestly, with the benchmark S&P/NZX 50 index ending down 33.94 points or 0.37 percent at 9,114.63, dragged down by financials and consumer staple companies.
Overnight, the U.S. markets were closed for a public holiday.
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