27.03.201406:37:13UTC+00Asia stocks plunge as Wall Street drops

The Asian markets were in fragile mood on Thursday after a late dive on Wall Street. Tokyo stocks tumbled as investors leaned on increase in sales tax that is anticipated to bust consumer spending and test the market's confidence in Abenomics.

The Nikkei dropped 1.2% to endanger key chart support about 14,203, a break of which could agitate a withdrawal to 14,000. The sales tax escalates 8%, from 5% on April 1, which is also the beginning of the new financial year in Japan. After its normal inverse relationship with stocks, the yen quickly pushed to the highest peak in a week versus the US dollar at ¥101.71.

Dialogue of potential stimulus in China had been backing Asian stocks in latest sessions, but the outcome was starting to diminish given the insufficiency of any concrete measures. The Australian market slipped 0.9% while MSCI's widest index of Asia-Pacific shares outside Japan slacked 0.2%. Stocks in South Korea, Taiwan and Singapore pulled off minor gains.

Some blasted Wall Street's drop on news the United States and the European Union agreed to work hand in hand to set up possible tougher economic sanctions in reply to Russia's behavior in Ukraine.