Asian markets slump in trades

Japan's Nikkei stock average hit a 1-month low to end just under a key technical level on Monday, hurt by volatile commodities as well as concerns about global growth and market participants said a decisive break below that level could trigger further losses.   

Banks and utilities lost further ground on worries about how much they will have to contribute to help troubled nuclear operator Tokyo Electric Power (Tepco) compensate victims of the crisis at its tsunami-hit nuclear plant.     

The mood was also soured after Goldman Sachs downgraded its recommendation on Japanese stocks to "underweight" from "market weight", citing a weaker global macro backdrop, supply chain and electricity supply problems after the March 11 earthquake as well as a stronger yen.     

The benchmark Nikkei average ended down for a third straight day, losing 1% to 9,558, while the broader Topix shed 1.2% to 830.     

Analysts said a decisive break below its closing level may push the Nikkei to the bottom of its daily Ichimoku cloud at 9,533,88, and if that level is then broken, it would be a major bearish signal triggering more selling.     

"If overseas stocks slip again, the Nikkei may fall as low as 9,300," he added.     

Market participants said risk factors for Tokyo stocks included volatile commodities markets, a possible correction ahead for U.S. stocks as the Federal Reserve ends its supportive policy, and the fear of a worsening euro-zone debt crisis.

Hong Kong stocks closed down, barely above a key support level in lacklustre trade on Monday, as funds unwound their positions in resource-related stocks amid volatility in the commodities sector that has forced investors to reassess their portfolios.

The benchmark Hang Seng Index finished down 1.3% at 22,961, after trading below its 200-day moving average at 22,961 in the last hour of trading.

China shares traded lower in thin trade on Monday as funds unwinded their positions in resource-related stocks amid ongoing volatility in the commodities sector that has forced investors to reassess their portfolios. The benchmark Shanghai Composite Index finished down 0.7% at 2,849.