The Ho Chi Minh Stock Exchange Thursday retraced Wednesday’s gains on the back of growing fears of a sharp global slowdown.


The VN-Index, Vietnam’s main stock index, lost 12.54 points, or 3.16 percent, to close at 384.61. Trading volume was 16.5 million shares. Of the index’s 164 members, 123 lost and only 25 gained.


“Today’s stock carnage came in the wake of falls in the US, European and Asian markets,” Nguyen Hai Son, a broker at FPT Securities, told Thanh Nien Daily Thursday.


Tokyo's Nikkei stock index plunged more than 11 percent Thursday, the biggest loss in two decades, as growing fears of a global recession saw world markets plunge.


The rout came after Wall Street suffered its worst percentage drop in two decades and its second-largest points loss in history overnight.


Hong Kong's Hang Seng index fell 7.6 percent, with the biggest losses racked up by commodity-related companies such as Shenhua, China's top coal producer. South Korean stocks had their third biggest fall ever, losing 9.4 percent as the nation’s currency, the won, dived 9.7 percent, its biggest fall since 1997.


Wall Street's Dow Jones index sank 7.87 percent Wednesday after US retail sales fell much more than expected and Federal Reserve chairman Ben Bernanke admitted a recovery from the financial crisis "will not happen right away."


Major European stock markets were expected to open down as much as 5.9percent, according to financial bookmakers, as investors anticipated poor corporate results in such an uncertain economic environment, while the dollar gained in a flight from risk.


According to a Ho Chi Minh City-based trader, who wished to remain anonymous, investor confidence also tumbled despite two earlier rising days because of foreigners’ negative move.


“Foreign investors, particularly medium- and small-sized investment funds, sold off sharply, bailing out of the marketplace,” he said, adding he expects the VN-Index to find a new low this year.


The benchmark index had slumped to this year’s lowest of 366 last June. Foreign players remained net sellers, dumping stocks worth VND32 billion.