TOKYO (AP) -- Asian markets, including Tokyo, Hong Kong and Singapore, fell sharply Wednesday, weighed down by lingering jitters over the U.S. subprime loan crisis and broader concerns about the U.S. economy.

Benchmark indices were down more than 2 percent in most markets, with the main Philippine index losing 4 percent and Jakarta's standard measure off 6.4 percent.

In Japan, the Nikkei 225 index lost 2.19 percent to 16,475.61 points on the Tokyo Stock Exchange, its lowest since Dec. 8.

Traders sold financial stocks as the U.S. subprime mortgage debacle dragged on and pulled global stocks lower. A stronger yen also prompted investors to sell exporting companies because the strengthening yen makes Japanese exports more expensive and less competitive overseas.

The Nikkei may be hit again if U.S. stocks fall further, said Masanaga Kono, strategist at Societe Generale, and it may soon trade below the 16,000 level if the yen appreciates more against the dollar.

Toyota Motor Corp. was down 3.0 percent. Matsushita Electric Industrial fell 5 percent after announcing a recall for a battery made for Nokia.

The broader Topix index, which includes all shares on the exchange's first section, fell 2.64 percent to 1,594.15 points Wednesday.

Meanwhile, Hong Kong's blue chip Hang Seng Index fell 2.87 percent to 21,375.72.

Traders said the lingering concerns over a global credit crunch are likely to drag the city's benchmark index down further. It may even breach the psychological support level of 21,000 in the near term, they said.

"We are seeing strong fund outflows in a highly liquid Asian market like Hong Kong because of heavy redemptions in global mutual funds," said Castor Pang, a strategist at Sun Hung Kai Research Ltd.

Y.K. Chan, strategist at Phillip Capital Management (HK) Ltd., said investors lack confidence and are selling in sympathy with the declines in the U.S.

"The index may be hit harder if we see additional falls on Wall Street," Chan said.

In currencies, the U.S. dollar was trading at 116.94 yen at 4:50 p.m. (0750 GMT) Wednesday, down from 117.83 yen late Tuesday in New York.

ELSEWHERE:

BANGKOK: Thai shares fell 2.5 percent to 773.92, knocked lower again by global credit crunch fears.

JAKARTA: Indonesian shares plunged 6.4 percent to 2,029.08, the biggest percentage drop since the 1997-1998 economic crisis. Besides the global credit worries, the market was also hurt by worries the central bank will hike interest rates next month.

KUALA LUMPUR: Malaysia's composite index on the Kuala Lumpur Stock Exchange fell 2.8 percent to 1,251.82.

MANILA: Philippine shares fell to a five-month low, dropping 4.1 percent to 3,130.34 in moderate volume.

MUMBAI: India's markets were closed Wednesday to mark the end of British rule.

SEOUL: Markets were closed Wednesday to mark Liberation Day.

SHANGHAI: China's main stock index fell as some big-cap stocks declined a day after the Shanghai market hit a record high. The Shanghai Composite Index fell 0.1 percent to 4869.88. The Shenzhen Composite Index for China's smaller second market dropped 0.4 percent to 1,326.12.

SINGAPORE: Singapore's Straits Times Index sunk 3.3 percent to an almost-four-month low at 3,273.25 points.

SYDNEY: Australia's benchmark S&P/ASX 200 index lost 3 percent to a 5-month low of 5,788.0.

TAIPEI: Taiwan shares plunged 3.6 percent to their lowest level in two months. The Weighted Price Index of the Taiwan Stock Exchange dropped 317.95 points to 8,593.04 points.

WELLINGTON: New Zealand shares slumped to their lowest close this year. The benchmark NZX-50 index fell 1.5 percent to 4,004.46, its lowest closing level since December 2006.