Asian shares sharply lower after wobbly day on Wall Street

TOKYO (AP) — Asian shares tumbled Wednesday after a wobbly day ended with mixed results on Wall Street as markets churn over the prospect of a possible recession.

Tokyo's Nikkei 225 index sank 2.1% to 26,020.56 while the Kospi in Seoul lost 2.8% to 2,161.95. In Sydney, the S&P/ASX 200 gave up 0.8% to 6,442.40.

Hong Kong's Hang Seng dropped 2.8% to 17,363.08 and the Shanghai Composite index declined 1.3% to 3,053.79. Taiwan's benchmark dropped 2.6%.

The week started off with a broad sell-off that sent the Dow Jones Industrial Average into a bear market, joining other major U.S. indexes.

On Tuesday, the S&P 500 slipped 0.2% to 3,647.29, its sixth consecutive loss. The Dow fell 0.4% to 29,134.99, while the Nasdaq composite wound up with a 0.2% gain, closing at 10,829.50.

Small company stocks held up better than the broader market. The Russell 2000 added 0.4%, to close at 1,662.51.

Major indexes remain in an extended slump. With just a few days left in September, stocks are heading for another losing month as markets fear that the higher interest rates being used to fight inflation could knock the economy into a recession.

The S&P 500 is down roughly 8% in September and has been in a bear market since June, when it had fallen more than 20% below its all-time high set on Jan. 4. The Dow’s drop on Monday put it in the same company as the benchmark index and the tech-heavy Nasdaq.

Central banks around the world have been raising interest rates in an effort to make borrowing more expensive and cool the hottest inflation in decades. The Federal Reserve has been particularly aggressive and raised its benchmark rate, which affects many consumer and business loans, again last week. It now sits at a range of 3% to 3.25%. It was at virtually zero at the start of the...