(fxcue news) - Asian stocks slumped on Wednesday after weak U.S. manufacturing data triggered heavy selling in chip-related stocks overnight. Gold traded weak below under $2500, pressured by a stronger U.S. dollar as traders awaited more U.S. economic data including Friday's upcoming payrolls data for more clues on the economic and rate outlook. Oil extended steep overnight losses to hover near a nine-month low amid renewed concerns over a potential slowdown in demand from China and the possibility of increased supply from leading producers. China's Shanghai Composite index fell 0.67 percent to 2,784.28 after a private survey showed growth in China's services sector activity slowed in August despite the summer travel peak. Hong Kong's Hang Seng index tumbled 1.10 percent to 17,457.34 on worries about U.S. and Chinese economic outlook. Japanese markets fell the most in a month as growth fears dented investors' appetite for risk. The Nikkei average plummeted 4.24 percent to 37,047.61, marking its lowest close since Aug. 15 and the biggest decline since Aug. 5. The broader Topix index settled 3.65 percent lower at 2,633.49. Chip-related stocks led losses, with Advantest, Screen Holdings and Tokyo Electron plunging 8-9 percent. Fuji Soft soared 7.4 percent after U.S. buyout fund Bain Capital indicated its intention to make a counteroffer for the software developer that would surpass the existing bid by KKR. Seoul stocks slumped, with the Kospi average tumbling 3.15 percent to 2,580.80 after an overnight rout in Wall Street tech stocks. Samsung Electronics lost 3.5 percent and SK Hynix plunged 8 percent. Australian markets fell sharply, with energy, mining and IT stocks suffering the biggest declines. The benchmark S&P/ASX 200 dropped 1.88 percent to 7,950.50 after the release of GDP data for the second quarter. The broader All Ordinaries index closed 1.99 percent lower at 8,157. Across the Tasman, New Zealand's benchmark S&P/NZX-50 index edged up 0.15 percent to 12,553.35. U.S. stocks slumped overnight, with the major averages posting their worst declines since Aug.5, as weak manufacturing data added to concerns that the U.S. economy could be headed to a recession. The tech-heavy Nasdaq Composite plummeted 3.3 percent amid a steep drop for AI investor darling Nvidia and other chip stocks. The S&P 500 tumbled 2.1 percent and the Dow dipped 1.5 percent as two indicators of manufacturing activity showed continued sluggish activity in the sector.