HONG KONG, May 14 (AFP): Asian stock markets slumped Thursday following an overnight tumble on Wall Street, as weak US retail sales data dampened investor confidence in a quick rebound in the global economy.

Tokyo closed down 2.64 per cent, Sydney fell 3.44 per cent and Hong Kong dived 3.23 per cent at midday, while Seoul was lost 2.37 per cent, Taipei shed 1.87 per cent and Shanghai dropped 0.90 per cent.

In Japan, investors locked in profits on news of the US retail data. Shares in the country's major exporters were sold off as the stronger yen and lower demand sparked by the global downturn has cut into their bottom lines.

"The Nikkei index gained nearly 1,000 points in the five-day winning streak (to Monday). There had been a mood in the market to correct the pace of advance," said Hideaki Higashi, strategist at SMBC Friend Securities.

"Then came the retail sales data, giving investors a good excuse to sell and lock in profits," he said, adding the yen's strength was also discouraging.

Sony Corporation announced Thursday its first annual loss in 14 years -- 98.94 billion yen (US$1.0 billion) for the 12 months to March -- and warned it would stay in the red this year.

Sanyo Electric Co. and Hitachi both reported major annual losses this week.

In Sydney, the market saw its biggest percentage fall in almost four months on fears that Anglo-Australian mining giant Rio Tinto will scrap a proposed $19.5-billion tie-up with Chinalco in favour of a rights issue.

Rio Tinto shares finished down 11.72 per cent at 57.60.

"Today, the concerns over Rio Tinto have shaken confidence, and probably reminded everyone that the market isn't completely out of the woods just yet," said IG Markets analyst Ben Potter.