Asian markets closed mixed Thursday while the U.S. dollar remained weak on concerns about the impact of a credit crisis on the global economy and as record oil prices fuel inflation worries.
Casting a gloomy outlook on global growth, the International Monetary Fund forecast the U.S. economy will tip into recession this year and said there is a 25 percent chance that world growth will slow to a level that would be considered recessionary.
Meanwhile, a lowered profit forecast by United Parcel Service, which is considered a bellwether of U.S. economic activity, renewed fears that fallout from the U.S. housing slump
and credit crisis is spreading.
Tokyo's Nikkei 225 Average ended down 1.3 percent, at its lowest close in more than a week, as worries about the U.S. and Japanese economies grew, with
companies such as industrial robot maker Fanuc hit by sagging machinery orders. Property firms such as Mitsubishi Estate extended losses, with exporters such as Toyota Motor sliding as the yen advanced against the dollar. All Nippon Airlines and Japan Airlines fell after Boeing said there would be a third major delay in the delivery of the new Boeing 787 Dreamliner plane. JAL and ANA both said they were considering compensation from Boeingover the delay of the 787 Dreamliner.