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Nikkei leads Asian stock plunge
 Japanese consumer electronics makers such as Matsushita were battered on the market Tuesday. YOUR E-MAIL ALERTS(CNN) -- Stock markets took another battering in Asia, with Japan's Nikkei plunging more than 4.1 percent, its biggest one-day fall in two years. South Korea too skidded on Tuesday, losing 2.9 percent to hit a seven-month low, as investors around the world anticipated a rate hike in the United States. Asian technology stocks led the savage falls, following their U.S. counterparts deep into the red on fears of a possible rise in interest rates and slower economic growth in the key U.S. market. In Europe, markets took their lead from the weaker sessions in Asia and on Wall Street, dropping to a six month low. (Full story) After Asian markets closed, attention turned to the key U.S. producer price index released Tuesday. (Full story) On Wednesday, the U.S. consumer price index will be released. These reports will give investors a pointer to the next policy meeting of the U.S. Federal Reserve on June 28-29. The downward spiral on the markets started about a month ago, when the Fed raised interest rates and warned of inflation concerns. Since then stocks have dipped around the world. In Japan, the Nikkei on Tuesday fell to its lowest level since November, with big exporters Sharp, Canon and Sony among the heaviest losers, along with Advantest and Tokyo Electron. Japanese automakers Toyota, Honda and Nissan also fell sharply. South Korea's Hyundai Motor dropped 4.6 percent and chip giant Samsung Electronics lost 3.85 percent. In Australia, the benchmark S&P/ASX 200 closed 2.56 percent lower, posting its biggest one-day drop since September 2001. There was a sea of red across the board in Asia, as selling intensified during the day. Taiwan lost 1.64 percent, and there were heavy falls in Hong Kong and Singapore heading towards the close. In India, share prices fell more than 5 percent in intraday trade, with Mumbai's BSE Sensex dropping below 9,000 at one point before recovering a little. In Tokyo, analysts said the market came under pressure after news that Bank of Japan Governor Toshihiko Fukui had contributed 10 million yen to the fund run by Yoshiaki Murakami, who was arrested last week for insider trading, before he became the central bank governor, Reuters reported. The Nikkei lost 614.41 points to 14,218.60, the lowest close since Nov. 16. It logged its largest one-day percentage loss since May 2004. The Nikkei has now dropped about 20 percent since April 7 when the benchmark hit its intraday high for the year. The TOPIX index also tumbled 3.48 percent to 1,458.30, its lowest close since Oct. 31. Wall Street trendThe falls in Asia came after Wall Street stocks slid Monday on concerns that an anticipated rise in interest rates could slow economic growth. The tech-heavy Nasdaq dropped 2.05 percent and the Dow lost 0.91 percent. The U.S. market is a key destination for Japanese and South Korean makers of consumer electronics and cars. Kenichi Hirano, a strategist at Tachibana Securities quoted by Reuters, said analysts would be closely watching figures from the U.S. this week. "U.S. monetary policy is now very critical for any market, so is the U.S. inflation data, on which the Federal Reserve relies," he said, referring to Tuesday's Producer Price Index and Wednesday's Consumer Price Index numbers. Pressure for SharpJapan's Sharp Corp., the world's biggest maker of liquid crystal display TVs, plunged 6.7 percent to 1,619 yen. Reuters reported it came under extra pressure after a downward earnings revision by rival LG. Philips LCD of South Korea, which stoked concerns about a fall in flat panel prices. Rival Sony, which has an LCD panel venture with South Korea's Samsung Electronics Co. Ltd., was down 3.25 percent to 4,770 yen. Other consumer electronics companies also were deep in the red. Toshiba fell 3.9 percent, Kyocera was down almost 5.5 percent and plasma TV maker Matsushita Electric Industrial dropped 5.8 percent. Toyota Motor Corp., the world's second-biggest auto maker, matched the Nikkei's fall, losing 4.16 percent to close at 5,530 yen. South Korea fallsSouth Korea's benchmark KOSPI fell 2.9 percent to 1,203.86, its lowest close in seven months. Market heavyweight Samsung Electronics fell 4 percent and fellow memory chip maker Hynix Semiconductor lost 3.5 percent. In Australia, the S&P/ASX200 finished at 4838.9 - a drop of 127 points. Leading miner BHP Billiton fell 5.5 percent, rival Rio Tinto lost 3.9 percent and top bank NAB dropped almost 2.4 percent. New Zealand posted a modest fall of about a third of a percent. Attention is now on the U.S. Federal Reserve's June 28-29 policy meeting. 
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