(MENAFN- AFP) Global stock markets slumped Friday on the first day of the second quarter, with investors rattled over fresh economic concerns in Japan and as solid US jobs data failed to boost sentiment.
Tokyo spearheaded losses across most of Asia as a key survey showed confidence at Japan's manufacturers slumped to a three-year low.
Data that the US economy added 215,000 jobs in March, slightly more than the 200,000 projected by analysts, failed to boost sentiment.
Despite the still-healthy pace of hiring, the jobless rate rose a tenth point to 5.0 percent as a growing number of people entered the jobs market.
The data, a vital snapshot of the strength of world's biggest economy that investors use to interpret the path of Federal Reserve interest rates, did not give the US dollar a lasting boost and Wall Street opened on the downside.
In Europe, Frankfurt and Paris stock markets were down around 2.5 percent in afternoon trading.
"It was another good month for the US labour market in March, but despite an initial pop in the dollar, the markets are not buying into it," said Craig Erlam, analyst at currency trading house Oanda.
"The move was consistent with what we've seen on a number of occasions, the initial reaction is as you'd expect for a positive report but this is quickly undone as the markets continue to reject the possibility that this will lead to a faster pace of" US interest rate hikes, he said.
- 'Hesitant start' to Q2 -
"Equity markets are having a hesitant start to the second quarter despite Janet Yellen's dovish speech this week," VTB Capital economist Neil MacKinnon told AFP.
Stocks soared Wednesday after Federal Reserve chief Janet Yellen indicated that the US central bank was unlikely to raise interest rates in the first half of this year, citing ongoing concerns about the slow global economic growth.
"A disappointing business survey in Japan is weighing on sentiment," said MacKinnon.
The Bank of Japan's quarterly Tankan report of 10,000 firms showed sentiment plunged in January-March to plus six from 12. The survey marks the difference between the percentage of firms that are upbeat and those that see conditions as unfavourable. Forecasts had been for a reading of plus eight.
The figures are the worst since Prime Minister Shinzo Abe put his growth drive fully into action in 2013 and will ramp up pressure on him as the economy struggles to gain traction.
Analysts also said the figures will likely push the central bank to unveil another round of monetary easing measures, on top of the huge bond-buying scheme already under way and after an unprecedented move to negative interest rates.
Tokyo's Nikkei index dived 3.6 percent, with a stronger yen also hitting exporters.
There were sharp losses across Asia, with Hong Kong down 1.3 percent and Sydney 1.6 percent lower at the close. Seoul, Singapore and Wellington were also heavily sold off.
However, Shanghai ended the day with a 0.2-percent gain thanks to end-of-day buying ahead of a long holiday weekend.
A surprise jump in a gauge of Chinese manufacturing helped Shanghai post a slender gain although investors were jolted by news that Standard & Poor's had lowered its credit rating outlook on China to negative.
- Key figures around 1330 GMT -
London - FTSE 100: DOWN 1.3 percent at 6,095.33 points
Frankfurt - DAX 30: DOWN 2.5 percent at 9,718.53
Paris - CAC 40: DOWN 2.6 percent at 4,269.65
EURO STOXX 50: DOWN 0.7 percent at 2,984.36
New York - Dow: DOWN 0.6 percent at 17,580.86
New York - S&P 500: DOWN 0.7 percent at 2,045.48
New York - Nasdaq: DOWN 0.7 percent at 4,834.89
Tokyo - Nikkei 225: DOWN 3.6 percent at 16,164.16 (close)
Shanghai - Composite: UP 0.2 percent at 3,009.53 (close)
Hong Kong - Hang Seng: DOWN 1.3 percent at 20,498.92 (close)
Euro/dollar: UP at $1.1385 from $1.1377 on Thursday
Dollar/yen: DOWN at 112.02 yen from 112.60 yen
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