HONG KONG, NOV 12: Asian stock markets, led by Hong Kong and Tokyo bourses, on Wednesday plunged on nervous selling pressure. The Hong Kong's Hang Seng index tested and fell through a key support level, closing sharply lower in another session marked by low turnover and interest rate fear.

The blue-chip Hang Seng index ended down 396.22 points, or almost 4 per cent, at 9,607.91. It traded the session in a range of 9,510 and 9,965.65. Trading turnover was worth 10.26 billion HK dollars compared with 8.24 billion in the previous session.

In Tokyo, the Nikkei stock average plunged 2.7 per cent to close at its lowest level in more than two years as investors' confidence in the recovery of the Japanese economy continued to evaporate.

The Nikkei tumbled 433.06 points to 15,434.17 after a 170.03 point rise yesterday. It was the lowest close since July 6, 1995, when it ended at 15,236.89.

Traders attributed the sell-off to growing worries about the Japanese financial system, which has been put under further strain by the steep fall of stock prices, and to belief that the government will do little to shore up the economy.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.