Tokyo  - Asian stocks slumped Wednesday on concerns over upcoming corporate earnings reports and profit taking.

The day's sharpest stock losses were seen in Hong Kong and mainland China, where the major indices fell more than 3 per cent, as analysts predicted dismal earnings for companies for the quarter that just ended as well as for this year.

Japan's benchmark Nikkei 225 Stock Average plunged 2.69 per cent to 8,595.01 while its broader Topix index of all first-section issues was also down 2.08 per cent at
815.26.

Wall Street's overnight losses dragged down shares in Tokyo as did Sharp Corp's announcement that it was enlarging its expected losses for the fiscal year that ended March 31.

The Japanese electronics company said it expected its net loss to expand to 130 billion yen (1.3 billion dollars) from a February forecast of 100 billion yen and its operating loss - its first since 1977 - to worsen to 60 billion yen from 30 billion yen as demand for digital products dwindles amid harsh price competition and the global economic downturn.

Oil and property stocks fell in Hong Kong, where the benchmark Hang Seng index fell 3.04 per cent to 14,474.86, on lower crude and housing prices.

Developers in mainland China were also expected to face a stagnant market as their shares took a hit and the Shanghai Composite Index saw its biggest drop in six weeks, tumbling 3.76 per cent to 2,347.38, while the Shenzhen Composite Index dipped 3.29 per cent to 780.46.

In India, stocks bounced back from early losses on investors' aggressive buying of property and energy shares as the Bombay Stock Exchange's 30-share Sensex index rose 0.35 per cent to 10,571.89 and the National Stock Exchange's broader 50-share Nifty was up 0.79 per cent at 3,282.25.

They were the exception to the norm, however, as investors in other countries in the region sold shares after analysts suggested that a stock rally that lasted through much of March was unsustainable in the current economy and before quarterly earnings reports began rolling in.

Company profits were expected to drop about 37 per cent, according to a survey of Wall Street analysts by the Bloomberg financial news agency. It would be the seventh-straight quarter of falling earnings.

Aluminium giant Alcoa Inc reported a first-quarter loss of 497 million dollars late Tuesday after posting a profit of 303 million dollars in the same quarter of 2008. The report marked Alcoa's second-straight quarterly loss.

Investors in Australia sold stocks to lock in gains made earlier this week, sending the ASX 200 down 2.7 per cent to 3,516.

Bucking the trend were gold stocks with Newcrest Mining Ltd and Lihir Gold Ltd rising by more than 2 per cent.

In South Korea, Asia's fourth-largest economy, profit taking also saw the benchmark Kospi index fall 2.93 per cent to 1,262.07.

Taiwan ended a six-session winning streak as its Taiex index fell 2.4 per cent to 5,443.56.

Dealers said the government's plan to lower credit card interest rate ceilings to no more than 12.5 per cent from around 20 per cent seriously battered financial shares.

In Singapore, the Straits Times Index fell 2.05 per cent to 1,765.51.

Other markets in South-East Asia saw lower drops. The Jakarta Composite Index dipped 1.41 per cent to 1,469.86, the Kuala Lumpur Composite Index was down 0.66 per cent at 913.74 and the Stock Exchange of Thailand was down 0.57 per cent at 440.03.

The Philippine Stock Exchange 30-share composite index was one of the few in the region to buck the downward trend and rose 1.03 per cent to 2,072.81.(dpa)