Tokyo stocks tumble as weak global data spook markets

Japanese stocks were knocked hard on Thursday as weak global manufacturing activity and an Ebola health scare in the United States spooked world markets, sending investors scurrying to the safety of US bonds, the yen and gold. The gloom is seen keeping Europe on the defensive, with spreadbetters forecasting Britain's FTSE and Germany's DAX each to drop as much as 0.2 per cent, and France's CAX to start 0.1 per cent lower. Investors warmed to the yen after a slew of surveys showed German factory activity shrank for the first time in 15 months, China's manufacturing sector barely grew, while the United States slowed more than expected. Japanese equities led the selloff in Asia, with the backdrop of concerns over global growth and a sputtering domestic economy pushing Tokyo's Nikkei down a sharp 2.1 per cent to three-week lows. MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.1 per cent, with the downturn potentially limited by market closures in both China and Hong Kong for public holidays, according to Reuters.