Asian markets follow Wall Street plunge

Asian markets plunged in early trading Wednesday, pulled down by a sharp decline on Wall Street overnight.

Japan's benchmark Nikkei 225 stock index fell 567.34 points, or 4.13 percent, to 13,178.16 on the Tokyo Stock Exchange by midmorning. The Nikkei fell 0.82 percent Tuesday.

Hong Kong's blue chip Hang Seng Index fell 1,331.45 points, or 5.37 percent, to 23,477.25 shortly after opening.

Investors reacted apprehensively after the Dow Jones industrial average dropped 370 points, or 2.93 percent, on an unexpected contraction in the U.S. service sector as evidence the economy is sinking into recession. It was the Dow's biggest one-day percentage drop since it lost 3.3 percent on Feb. 27, 2007.

In currencies, the U.S. dollar bought 106.56 yen in Tokyo, down from 106.92 yen late Monday in New York. The euro fell to $1.4640 from $1.4652.