KUALA LUMPUR: Asian stock markets tumbled anew Friday. Bellwether indices in key regional markets dropped sharply following Wall Street’s losses overnight. The Dow Jones Industrial Average suffered one of its steepest drops since hitting the lows in March 2009.

The Nikkei index fell 2.9% while headline indices in Taiwan and South Korea closed 4.3% and 3% lower, respectively. Meanwhile, the Hang Seng index lost 3.3% while the Straits Times index closed 2.2% lower.

On the Bursa Malaysia, shares too opened broadly lower. The FBM KLCI fell right from the opening bell and was in the red throughout the day.

The benchmark index ended 17 points lower at 1,247.9. Some of the big losers were Nestle, Tanjong plc, PPB, KL Kepong, CIMB, IJM and Public Bank. Market breadth was in negative territory all though the trading day. At the close, there were more than seven losing stocks for every two gaining ones.

About 918 million shares were traded. The most actively traded stock, by far, was KNM. The stock surged 8.7% to 81.5 sen on news of a buyout offer from its controlling shareholder priced at 90 sen per share. Other actives include Talam, Genting, LCL and PLUS.

Investors are likely to stay cautious given the prevailing uncertainties in the global market. The local bourse will take its cues from the US and regional stock markets.

Stocks, already roiled by the growing debt problems in the euro zone, were further buffeted by a larger than expected number of claims for unemployment benefits in the US. The disappointing report came a day before the release of the all important jobs market report for January 2010. Unemployment in the world’s largest economy is expected to stay in the double digits for the better part of this year.

Elsewhere, Greece has put forward plans to rein in the government’s high budget deficit but concerns over its effectiveness remain. Fears of defaults have spread to other highly indebted members of the euro zone, including Spain and Portugal.