Asia plummets on Europe fears and US data Asian shares dropped, with Japan's stock index falling to a four-month low, as investors dumped risky assets amid worries about Europe compounded by disappointing US economic data. The FTSE Asia Pacific index lost 2.4 per cent to 217.75 with Japan's Nikkei 225 Stock Average off 3 per cent to 8611.31, Australia's S&P/ASX 200 index down 2.7 per cent to 4,046.458 and South Korea's Kospi Composite index 3.4 per cent lower to 1,782.46. Concerns about Europe increased after Moody's downgraded 16 Spanish banks and the prospect of Greek elections in June, which could lead to the country's eventual exit from the euro. Fears of capital flight from Greece were heightened by depositors taking large sums out of banks. In Tokyo, a stronger yen hurt Japanese exporters although the yen fell back slightly, down 0.2 per cent to Y79.45 per US dollar, on fears that the Japanese authorities might intervene in the currency market. Automakers slid with Honda Motor off 3.6 per cent to Y2,564, Toyota Motor down 3.7 per cent to Y3,030 and Mazda Motor 4.6 per cent lower to Y105 in Tokyo. Hyundai Motor dropped 4.8 per cent to Won229,000 and its affiliate Kia Motors dropped 5.7 per cent to Won73,300 in Seoul. Other exporters were also weaker with Samsung Electronics, which derives a fifth of its revenue from the US, losing 4.7 per cent to Won1,166,000 in Seoul, while Sony slid 5.3 per cent to Y1,100 and Nintendo fell 2.1 per cent to Y9,290 in Tokyo. Japanese machinery makers also dropped after sales growth slowed at Caterpillar, the largest maker of construction and mining equipment. In Hong Kong, Esprit Holdings, a clothier that depends on Europe for most of its sales, plunged 4.1 per cent to HK$12.56. Resources stocks were under pressure amid the uncertain global economic outlook. Japanese steelmakers were among the loss leaders with JFE Holdings off 5.6 per cent to Y1,291 and Kobe Steel down 6 per cent to Y95. Australian miners also lost ground with iron ore miner Fortescue Metals Group and Rio Tinto tumbling 5.1 per cent to A$4.66 and A$55.20. In Hong Kong, Aluminum Corp of China slid 1.5 per cent to HK$3.19. Banks were lower across the board on European concerns with Nomura Holdings sliding 5.6 per cent to Y268 and Mitsubishi UFJ Financial Group dropping 3.4 per cent to Y339 in Tokyo. In Sydney, Westpac Banking declined 3.8 per cent to A$20.41 and National Australia Bank fell 4.2 per cent to A$23.32. HSBC declined 3.1 per cent to HK$63.80 in Hong Kong while Industrial & Commercial Bank of China fell 1.9 per cent to Rmb4.25 and China Citic Bank dropped 1.2 per cent to Rmb4.27 in Shanghai. Chinese stocks dropped with Hong Kong's Hang Seng index off 1.3 per cent to 18,951.85 and China's Shanghai Composite index 1.4 per cent lower to 2,344.52. In Hong Kong, China Mobile lost 1.4 per cent to HK$83.15 and New World Development slid 4 per cent to HK$8.38.