Fears over global recovery as Asian stocks, crude fall

Heightened concerns that global recovery may be faltering has seen Asian stocks drop the most in more than two weeks, oil fall for a third straight day and the South Korean won weaken the most.

The MSCI Asia Pacific Index retreated 1.4 per cent to 112.36 as of 11:35 am in Tokyo and is set to record its worst first half in two years. For every stock that advanced in the MSCI's Asian gauge more than six stocks declined.

Japan's Nikkei 225 Stock Average lost 2.1 per cent, while Australia's S&P/ASX 200 Index dropped 1.5 per cent. The Kospi declined 1 per cent in Seoul. Chinese stocks have touched a 14-month low.

Crude dropped 3.9 per cent, the sharpest three-day slide in six weeks.

An unexpected drop in US consumer confidence led to a global share sell-off that was encouraged by the downward revision of an economic indicator for China. The Conference Board revised down its April leading economic index for China to show the smallest gain in five months.

This triggered a global sell-off in speculative assets and Chinese stocks dropped the most in six weeks. China's Shanghai Composite Index fell 1.1 per cent to a 14- month low on concerns about policy tightening measures and the European debt crisis.