Concerns about China, Italy batter global stocks

Click the chart for current world markets data.

NEW YORK (CNNMoney) -- World stock markets tumbled Tuesday, after a report stoked concerns about the finances of more than five dozen Chinese companies, and as fears remain high about Europe's debt crisis spilling over into Italy.

Asian stocks finished sharply lower, with China's Shanghai Composite (SHCOMP) index falling 1.7% after Moody's Investors Services warned of risky business practices at 61 Chinese companies.

The "red flags" include weakness in corporate governance, poor quality of earnings, fast-growing business strategies and opaque business models.

LDK Solar (LDK), a Chinese solar company that is listed on the New York Stock Exchange, fell 1.4% in premarket trading after it was listed among the 61 companies in the report.

The Hang Seng (HSI) in Hong Kong tumbled 3.1% and Japan's Nikkei (NKY) fell 1.4%.

Arrivederci, rally! Why Italy is latest worry

Meanwhile, talks among Europe's finance ministers spilled over into their second day Tuesday, as the group tries to find a way to contain Greece's debt crisis and prevent a debt contagion from spreading to other so-called periphery countries.

After a nine-hour meeting on Monday, the group published a six-paragraph statement pledging to enact new measures "shortly," but failed to calm investors' nerves -- who fear the debt crisis will spread to Italy next.

European stocks sunk in midday trading, with France's CAC 40 (CAC40) slipping 2.4%, Germany's DAX (DAX) falling 2.3% and Britain's FTSE 100 (UKX) sliding 1.6%.

The Euronext 100 (N100) fell 1.8%.