ASIA STOCKS closed with huge losses

Japan stocks plunged, with the Nikkei 225 (NKY) Stock Average entering a bear market at the close, as the yen rose to its strongest against the dollar in two months. All shares on the gauge fell for the second time this year.

All 33 industry groups declined on the broader Topix index, which sank 4.8% to 1,044.17 at the close in Tokyo. The Nikkei 225 slumped 6.4% to 12,445.38, its third fall of more than 5% in the past month.

The World Bank cut its global growth forecast for this year after emerging markets from China to Brazil slowed more than projected, while budget cuts and slumping investor confidence deepened Europe’s contraction.

The World Bank cut its global growth forecast for this year to 2.2% from 2.4% projected in January, the bank said in a report released yesterday in Washington. China’s growth outlook was reduced to 7.7% from 8.4%, according to the report.

The slowdown in China’s growth may extend into the third quarter, the China Securities Journal said today. Uncertainties over investment growth will increase as urban development may be slower than expected, according to the newspaper.

The Shanghai Composite Index (SHCOMP) dropped 2.8% to 2,148.36 at the close, the lowest level since Dec. 13.

Hong Kong’s Hang Seng China Enterprises Index (HSCEI) lost 3.3%, heading for a bear market, as trading resumed following a one-day holiday.

SAIC Motor Corp. led declines for automakers after growth in industrial output slowed to 9.2% last month from 9.3% in April.

Baoshan Iron & Steel Co., the listed unit of China’s second-biggest steelmaker, lost 2.8% after it cut product prices.

Sany Heavy Industry Co., the biggest Chinese machinery maker, tumbled 5.7%.

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