Asian markets fall as global selloff continues

NEW YORK (CNNMoney) -- Asian stock markets opened lower Friday following a bruising selloff in global markets during the previous session.

In China, the Shanghai Composite was down 1.6% in early trading. The Hang Seng in Hong Kong fell 2.7% and Japan's Nikkei sank 2.1%.

The selling in Asia comes after stocks in the United States and Europe plunged Thursday on renewed worries about a slowdown in global economic growth.

The Dow Jones industrial average (INDU) fell a whopping 419 points, or 3.7%, to close just below 11,000. The S&P 500 (SPX) sank 4.4% and the Nasdaq Composite (COMP) lost 5.2%.

Shares in London, Frankfurt and Paris all closed between 4% and 5% lower on Thursday.

On Friday, investors continued to flock to investments that are seen as safer alternatives to stocks.

Dow Jones industrial average, S&P 500 and Nasdaq futures pointed to another down trading day in the U.S., with each down less than 1%.

Gold prices rose nearly 1% to $1838.60 an ounce after settling Thursday at a nominal all-time high of $1,822 an ounce.

World markets data

Investors around the world have been rattled by signs the global economy is loosing traction.

Morgan Stanley said Thursday it has slashed its global growth outlook for 2011 and 2012, adding that the U.S. and Europe are "hovering dangerously close to a recession."

Economic reports released Thursday reinforced the sense of impending doom. A key reading on U.S. housing came in worse than expected. And a report showed a significant slowdown in the domestic manufacturing sector.

Meanwhile, investors remain unnerved by the debt crisis in Europe and the lack of a coherent policy response from the European Union.

French President Nicolas Sarkozy and German Chancellor Angela Merkel announced proposals Tuesday that they say will help encourage fiscal discipline and promote competitiveness in the euro zone.

But investors had been expecting bolder moves, and analysts said serious questions remain about how effective the proposals would be if they were adopted.