Stocks in Japan retreated into the red on Wednesday amid persistent fears about the global economic recovery after the International Monetary Fund's warning.

Steel makers and tech stock were among the steepest decliners on concern that the global economy is heading for another recession after the IMF reduced its forecasts for the second time since April.

In Tokyo JFE Holdings lost 2% while Kobe Steel tumbled nearly 5%. In Hong Kong aluminium giant Aluminium Corp of China surrendered 0.6% after US metal giant Alcoa unofficially kicked off the third quarter earnings season after the close on Wall Street on Tuesday.

The group said it moved into a third-quarter net loss and lowered its outlook for 2012 global aluminium demand forecast to 6% from 7%, citing a slowdown in demand from China.

The benchmark Nikkei 225 fell 173 points at 8,596 while the broader Topix index fell 1.5% to close at 716 points. The Hang Seng fell 17 points at 20,919 in Hong Kong.

Shares of car firm Toyota fell sharply after it confirmed the recall of over 7m vehicles after a fault was found in its electric windows. Rival Honda also fell.

Tech plays Fujitsu and Panasonic were both down around 3% on concerns about a weak outlook after semiconductor giant Intel was hurt by negative broker coverage.

Elsewhere Tokyo Electron rose 0.6% after it said second quarter orders rose to a stronger than expected ¥75bn.

Otherwise Toshiba skidded 4.8% after it confirmed it would acquire another 20% stake in Westinghouse Electric for ¥125bn.


CJ

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