SINGAPORE: Asian stock markets slumped Thursday as investors mulled whether the global economic recovery is strong enough to justify extending a year-long surge in equities.

Japan's benchmark Nikkei 225 stock average fell 88.93 points, or 0.8 percent, to 11,203.90. South Korea's Kospi index slipped 0.1 percent to 1,724.37.

China's benchmark index in Shanghai fell 0.4 percent, Singapore slid 0.8 percent whiel Malaysia and Indonesia each dropped 0.5 percent.

Hong Kong's index was little changed.

In New York overnight, the Dow Jones industrial average lost 72.47, or 0.7 percent, to 10,897.52 after repeated attempts this week to cross the 11,000 threshold, a level it hasn't seen in 18 months.

Investors dumped U.S. stocks after the Federal Reserve on Wednesday said consumer borrowing fell by $11.5 billion in February. Analysts had expected a modest gain of $500 million. The drop, resulting from weakness in credit cards and auto loans, raised concerns that U.S. consumer spending will remain weak.

Along with a slump in the U.S. market, sentiment was sluggish in Tokyo on Thursday after Japanese machinery orders, an indicator of future business investment, unexpectedly fell in February for the second straight month.

Core machinery orders in the world's second biggest economy declined 5.4 percent from a month earlier to 684.6 billion yen ($7.3 billion), the Cabinet Office said Thursday. The figure excludes often volatile numbers from shipbuilders and electric power companies.

Asian stocks have soared since early last year as the global economy rebounds from recession. Investors will be eyeing first-quarter company earnings results for evidence that could justify extending the rally.

"Stocks have recovered based on optimism that the fundamentals will catch up," said Lee Kok Joo, head of research at Phillip Securities in Singapore. "Right now, we're at the point where the market is starting to rethink that."

"So far, corporate earnings haven't disappointed, but can that be sustained?"

In currencies, the dollar edged up to 93.33 yen on Thursday from 93.25 yen on Wednesday. The euro stood at $1.3321, slightly down from $1.3334 the previous day.

Benchmark crude for May delivery was down 22 cents to $85.66 a barrel.