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Asian shares follow global sell-off

Hong Kong -Asian markets extended the week's losses on Friday, following a heavy sell-off in New York and Europe in reaction to another batch of poor Chinese data and flaring tensions in Ukraine.

Traders scurried into lower-risk assets such as the yen owing to growing economic uncertainty and geopolitical fears.

Tokyo tumbled 2.73% by the break, Hong Kong lost 0.67%, Sydney shed 1.26%, Shanghai was 0.71% lower and Seoul slipped 0.51%.

Apart from mild bargain-buying gains on Tuesday and Thursday, regional shares have been in a downward spiral this week since China said at the weekend it had seen a surprise trade deficit in February and exports had slumped.

The selling was fanned on Thursday when Beijing released fresh figures showing industrial production rose at its slowest pace in five years in January and February, while consumer spending saw its weakest increase for three years.

With China - a crucial driver of global growth - releasing a series of downbeat economic data, investors are shifting into safer investments, predominantly hitting equities.

The main markets in London, Frankfurt and Paris all suffered heavy losses and Wall Street followed, with the Dow sinking 1.41%, the S&P 500 losing 1.17% and the Nasdaq 1.46% lower.

The US losses came despite unemployment benefits claims tumbling last week to their the lowest level in more than three months, while retail sales saw their first gain in February after two successive declines.

The yen, considered a safe haven, surged against the dollar in New York on Thursday, which in turn hit Japanese shares.

'Nikkei suffers double-whammy'

"Japan stocks take the first hit on bad Asian news, then when the US markets fall late, they react to that as well, resulting in a 'double whammy' effect," a Tokyo-based hedge fund manager told Dow Jones Newswires.

The dollar was at ¥101.81 early Friday, down from ¥101.85 in New York Thursday afternoon and well down from the mid-¥103 level seen at the start of the week.

Adding to the weak sentiment were fears over the Ukraine crisis ahead of a referendum in Crimea on becoming part of Russia, a vote the West has called illegal.

US Secretary of State John Kerry is due to meet his Russian counterpart Sergei Lavrov in London to defuse the crisis but also to warn Moscow of a serious backlash over the vote as the US and EU prepare sanctions against those blamed for stirring the tensions.

In other currency trade the euro slipped after European Central Bank chief Mario Draghi said that the risk of deflation in the eurozone was "quite limited" but that he stood ready to act decisively in case inflation expectations shifted down.

He added that "the longer inflation remains low, the higher the probability of such risks emerging".

The single currency fetched ¥141.14 against ¥141.28 in US trade and also sharply lower than the ¥143.30 on Monday.

It also bought $1.3862, compared with $1.3870 in New York. The unit had touched a 29-month high of 1.3967 at one point Thursday.

Oil prices were flat. New York's main contract, West Texas Intermediate for April delivery, was up one cent at $98.21 in early Asian trading. Brent North Sea crude gained one cent to $107.40 for its April contract.

Gold fetched $1,372.61 an ounce at 02:55 GMT compared with $1 369.33 late Wednesday.

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