Asia stocks dive on downbeat IMF forecasts

Asian stocks declined the most in almost a month on Tuesday after the International Monetary Fund (IMF) cut its economic growth forecasts for the US and Japan.

Asian stocks declined the most in almost a month on Tuesday after the International Monetary Fund cut its economic growth forecasts for the US and Japan.

According to the IMF's latest forecasts, the US economy will expand 2.8% this year, slowing from 2.9% last year.

The Washington-based fund also cut its estimate of Japan's growth to 1.4% from 1.6% following last month's earthquake and tsunami and the subsequent aftershocks.

Sentiment was also hit as Japanese authorities raised the severity rating of its nuclear crisis to a level only previously seen following the Chernobyl disaster in 1986.

Japan's Nikkei 225 Stock Average fell more than 2%, the most since shortly after the 11 March earthquake and tsunami.

The MSCI Asia Pacific Index declined 1.5%, the most since March 15, to 134.56 shortly before close, while Australia's S&P/ASX 200 Index dropped 1.4% and New Zealand's NZX 50 Index slipped 0.3%.

Elsewhere, South Korea's Kospi index retreated 1.5%, while Hong Kong's Hang Seng Index sank 1.3%, the biggest drop since March 17.