|Asian shares track Street losses
Asian markets slumped Tuesday, following a huge sell-off on Wall Street as disappointing US economic data compounded already deep fears about emerging markets.
Traders were also spooked by a warning from Treasury Secretary Jacob Lew, who warned that the US borrowing limit will be reached on Friday, renewing fears of a Washington stand-off and possible default, AFP reports.
Tokyo dived 2.62 percent by the break, Hong Kong sank 2.15 percent after a four-day holiday weekend, Sydney fell 1.33 percent and Seoul was 1.41 percent lower.
Shanghai and Taipei were closed for the Lunar New Year holiday.
US stocks took a hammering on Monday after the Institute for Supply Management said its purchasing managers index (PMI) of manufacturing activity fell to 51.3 in January from 56.5 in December. A figure above growth indicates growth and anything below points to contraction.
On Wall Street the Dow closed down 2.08 percent, the S&P 500 fell 2.28 percent and the Nasdaq 2.61 percent.
The results -- following worse-than-expected jobs data in January -- raised concerns the US economy may not be as strong as initially thought, a worry for investors less than a week after the Federal Reserve said it would reduce its stimulus, citing signs of a strong recovery.
They also come as emerging markets are rattled by fears of capital flight caused by the Fed tapering as well as signs of weakness in China, a key driver of global growth.
China at the weekend released official figures showing its PMI fell to 50.5 in January from 51 in December and HSBC last week said its PMI for the country came in at a six-month low of 49.5.