Adding to the housing worries, tile US Mortgage Bankers Association said delinquencies for all home loans rose to a three-year high of 4.95% in the fourth quarter, and to 13.33% in the risky 'subprime' market.
The Dow Jones Industrial Average fell more than 240 points overnight for its second-biggest drop in almost four years on Tuesday, with a tepid 0.1 % rise in the US retail sales in February providing little cheer for investors.
But barring a really severe economic downturn in the US, the Asian economies should continue to enjoy solid growth, said Tim Rocks, Asian equities strategist at Macquarie Securities in Hong Kong.
"We see the outlook as fundamentally very, very strong. Domestic conditions in Asia are very, very healthy. We don't see the Asian markets as particularly expensive overall," he said.
"We think it's a danger to become too defensive in this environment. Obviously we're .not going to know the full extent of this slowdown in the US for some time now so there's some reason for caution, "he added.
Across the region, stock price screens were awash with red.
Sydney lost 2.1 %, Shanghai slid 1.97%, Manila fell 3.38%, Seoul declined 2.0%, Kuala Lumpur was down 2.7% in late deals and Singapore shed 3.06%. Indian share prices were not spared from the rout, with Mumbai down over 3% in early deals. Dealers said the disquiet about the US economy had unnerved investors who are still jittery after last month's big sell-off sparked by heavy losses in Shanghai.
"The latest bout of share market turmoil has its origins in the US even though a 9% one-day fall in Chinese shares (on February 27) may have provided an initial psychological trigger," AMP Capital Investors head of investment strategy Shane Oliver said in Sydney.
"We remain of the view that while recent weakness and volatility in share markets may have further to run, it is just another correction in a still rising trend, " he said.
The Dow Jones Industrial Average fell more than 240 points overnight for its second-biggest drop in almost four years on Tuesday, with a tepid 0.1 % rise in the US retail sales in February providing little cheer for investors.
But barring a really severe economic downturn in the US, the Asian economies should continue to enjoy solid growth, said Tim Rocks, Asian equities strategist at Macquarie Securities in Hong Kong.
"We see the outlook as fundamentally very, very strong. Domestic conditions in Asia are very, very healthy. We don't see the Asian markets as particularly expensive overall," he said.
"We think it's a danger to become too defensive in this environment. Obviously we're .not going to know the full extent of this slowdown in the US for some time now so there's some reason for caution, "he added.
Across the region, stock price screens were awash with red.
Sydney lost 2.1 %, Shanghai slid 1.97%, Manila fell 3.38%, Seoul declined 2.0%, Kuala Lumpur was down 2.7% in late deals and Singapore shed 3.06%. Indian share prices were not spared from the rout, with Mumbai down over 3% in early deals. Dealers said the disquiet about the US economy had unnerved investors who are still jittery after last month's big sell-off sparked by heavy losses in Shanghai.
"The latest bout of share market turmoil has its origins in the US even though a 9% one-day fall in Chinese shares (on February 27) may have provided an initial psychological trigger," AMP Capital Investors head of investment strategy Shane Oliver said in Sydney.
"We remain of the view that while recent weakness and volatility in share markets may have further to run, it is just another correction in a still rising trend, " he said.
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