HONG KONG (AFP) - Asian stocks tumbled Wednesday following a fall on Wall Street and a warning from the European Central Bank that eurozone lenders face hundreds of billions of dollars of writedowns. Concerns for the euro economies were also stoked by news that unemployment in the region had hit a record high and manufacturing had slowed. Japans Nikkei closed 1.12 percent, or 108.59 points, lower at 9,603.24 as uncertainty crept into the market following the resignation of Prime Minister Yukio Hatoyama. Sydney fell 0.72 percent, or 32.1 points, to 4,381, while Hong Kong dropped 0.13 percent, or 25.15 points, to 19,471.80. Wall Street, which was closed Monday for a public holiday, gave a poor lead, with the Dow ending 1.11 percent lower as jitters set in over Europes fiscal woes. The European Central Bank (ECB) suggested Tuesday that eurozone banks might have to reduce the value of their assets by a total of 195 billion euros (240 billion dollars) by 2011. It said in its twice-yearly Financial Stability Review that lenders faced several challenges, including a weakening commercial real estate market, hundreds of billions of euros in bad debts, and possible competition for refinancing from governments with swollen sovereign debt. With governments competing in the bond market, this raises the risk of bank bond issuance being crowded out, thereby heightening roll-over risks, which are sizeable for some institutions, the report said. It also said some banks depended on the ECB for loans. The regions problems were compounded by data showing unemployment in the eurozone hit 10.1 percent in April, its highest since the single currency was launched in 1999. Almost 16 million people were out of work across the 16 countries that share the single unit, the European Union said. Separate figures showed private sector manufacturing output growth slowed in May to a level not seen since the collapse of Lehman Brothers in late 2008, at the beginning of the global financial crisis. Investor sentiment was soured amid speculation of further ratings downgrades in the region with France next in line after Greece, Portugal, Spain and Ireland, said Credit Agricole CIB analyst Mitul Kotecha. The euro, which at one point hit four-year lows below 1.22 in New York Tuesday, fell to 1.2216 dollars from 1.2232 and 111.82 yen from 111.40. The dollar rose to 91.55 yen in Tokyo morning trade from 91.06 in New York late Tuesday. The yen was pressured after Hatoyama stepped down over his reneging on a campaign promise to move a controversial US military base off Okinawa island while also being hit by fallout from a political fund scandal. But the impact on the Japanese currency will likely be limited as investors had already priced in the resignation amid media speculation, Tokyo Forex & Ueda Harlow currency manager Yuzo Sakai told Dow Jones Newswires. Australia announced its economic growth slowed to 0.5 percent in the March quarter as the effects of stimulus measures put in place to fight the global slump wore off and recent rate hikes kicked in. British insurance giant Prudential said Wednesday it was withdrawing from a bid to buy AIA, the Asian arm of AIG, after the US group refused to lower its asking price. The deal foundered after AIG turned down Prudentials request to cut the 35.5 billion dollars (29 billion euros) price tag to nearer 30 billion dollars, following a revolt by the British companys shareholders. Prudential shares, valued in US dollars, fell 1.56 percent to 8.19 US dollars in Singapore but rose 1.89 percent to 64.70 Hong Kong dollars on the Hang Seng Index. Shanghai edged up 0.12 percent, or 3.14 points, to 2,571.42 as bargain hunters picked up property developers and securities firms after recent losses, dealers said.