SHANGHAI - Asian markets fell back Wednesday on renewed jitters over the economic outlook after Wall Street overnight suffered its biggest loss in five weeks.

Analysts said the early selloffs in many markets were to be expected following Tuesday's healthy gains after the release of positive Chinese economic data.

"The correction is partly to yesterday's surge, when investors seemed to overreact to China's economic figures," said Castor Pang, an analyst at Sun Hung Kai Financial in Hong Kong. But he viewed the drop as temporary given the signs that the global economy may be recovering.

"After a little correction, investors will buy back in," he said.

European and U.S. stock markets fell Tuesday as the Federal Reserve started its two-day policy meeting that may provide a fresh assessment of how the world's largest economy is faring. The U.S. central bank is expected to hold interest rates steady at near zero when it ends its meeting Wednesday.

Asia's biggest benchmark, Tokyo's Nikkei 225 stock average, retreated from a 10-month high on Tuesday, losing 148.78, or 1.4 percent, by early afternoon to 10,435.09. Major exporters were among the biggest decliners, with Canon Inc. sliding 0.9 percent and Toyota Motor Corp. losing 1.9.

Hong Kong's Hang Seng Index dropped 436.19, or 2.1 percent, to 20,641.05, on heavy selling of shares in big mainland Chinese companies and weakness in mainland-traded shares.

Shanghai's Composite Index was down 2.1 percent to 3,196.44, with financial and steel companies like Baoshan Iron & Steel and China Life Insurance leading the decline.

Figures released Tuesday in China showed improvement in trade, retail sales and industrial production, adding to spreading signs of a global recovery. But some said the gains were not as big as hoped for, and corporate profits remain relatively weak.

Australian shares recovered by noon, with the benchmark S&P/ASX 200 index up 5.9 points, or 0.1 percent, at 4,337.90, buoyed by banking stocks but weighed down by resources.

Elsewhere, shares fell in South Korea, Taiwan and the Philippines.

In the U.S. Tuesday, investors dumped financial shares, shifting to safer havens like consumer staples companies and government debt. The Dow Jones industrial average fell 96.50, or 1 percent, to 9,241.45. The broader S&P 500 index fell 12.75, or 1.3 percent, to 994.35. It was the biggest drop for both the Dow and the S&P 500 index since July 7.

U.S. stock index futures were up modestly, with Dow futures up 4 points.

Oil prices hovered above $69 a barrel after the U.S. and OPEC said global crude consumption will slump this year as economies struggle to emerge from recession. Benchmark crude for September delivery was unchanged at $69.45 a barrel by midday in Singapore in electronic trading on the New York Mercantile Exchange.

In currencies, the dollar fell to 95.53 yen from 95.94 yen late Tuesday in New York. The euro was little changed at $1.4143.

A service of YellowBrix, Inc.