Asian stocks plummeted its biggest in two weeks as U.S. home sales slowed down anew in May unexpectedly raising concerns on the fragility of the world's biggest economy.

The MSCI Asia Pacific Index also fell 1.3 percent to 116.68 at 3:01 p.m. in Tokyo, the largest drop since June 7. The index has fallen 9.6 percent from its high posted on April 15 as market speculation that the Chinese state-run property market cannot curb property prices and Europe's debt crisis will hurt global growth.

The optimistic outlook of Canberra-based Australian Bureau of Agricultural and Resource Economics (ABARE), for commodities did not help listed mining firms BHP Billiton Ltd., the world's No. 1 mining company, from shedding 1.3 percent in Sydney after oil and copper prices sank.

In Japan, Toyota Motor Corp., which receives 67 percent of its revenue outside of the country skidded 1.7 percent in Tokyo after the dollar and euro weakened against the yen. Nintendo Co., which counts the Americas and Europe as its biggest markets, dropped 3.6 percent.

"There is a growing concern emerging that the global economy will slow," a Hong Kong based fund manager said. "Investors are avoiding more risks."

Japan's Nikkei 225 Stock Average fell 1.9 percent, the biggest decline among major indexes in the Asia-Pacific region. Australia's S&P/ASX 200 Index lost 1.6 percent. Hong Kong's Hang Seng Index slipped 0.4 percent while China's Shanghai Composite Index decreased 1.2 percent.

Futures on the Standard & Poor's 500 Index rose 0.3 percent recovering from 1.6 percent drop yesterday.

Cautious sentiments arise

The take of commodity companies also reached low levels after crude oil for August delivery in New York dropped as much as 1 percent today, extending yesterday's 1 percent decline. Copper futures for September delivery lost as much as 1.6 percent, the first decline this week.

A commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney, said market sentiments remain weak and fragile at the moment.

BHP, which acquires about 40 percent of its revenue from petroleum and base metals exports, declined by 1.3 percent to A$39.14 in Sydney. Rio Tinto Group, the world's third-largest mining company, declined 2.2 percent to A$70.54. Christine Gaylican