China's stocks slump tracking Nikkei's fall

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China's stocks fell 2.78 percent on Thursday tracking declines in the Asian markets and heavy losses on Wall Street on Wednesday.

The benchmark Shanghai Composite Index fell 2.78 percent, or 69.91 points, to close at 2,443.06 points.

The Shenzhen Component Index dropped 3.01 percent, or 331.38 points, to finish at 10,660.47.

In Japan, the 225-issue Nikkei Stock Average closed down 2.07 percent. The Hang Seng Index tumbled 4.85 percent.

The retreats came after the U.S. Federal Reserve on Wednesday announced stimulus measures to buy 400 billion U.S. dollars of long-term bonds with maturities of six to 30 years through to June next year, while selling the same amount of Treasury notes that mature in three years or less in efforts to drive down long-term interest rates and give a boost to the sluggish economy.

After a regular meeting Wednesday, the Fed also revised down its economic outlook, saying that there are "significant downside risks to the economic outlook, including strains in global financial markets."

It also noted that U.S. economic growth remains weak and the unemployment rate remains elevated.

The gloomy outlook negatively affected the markets. On Thursday, combined turnover on the Shanghai and Shenzhen bourses shrank to 139.1 billion yuan (about 21.8 billion U.S. dollars) from 159.9 billion yuan the previous trading day.

The markets posted widespread declines amid profit taking Thursday following sharp rises the previous trading day.

Losers outnumbered gainers by 917 to 48 in Shanghai, and by 1,360 to 89 in Shenzhen.

Securities, cement, non-ferrous metals led the declines. Citic Securities retreated 4.3 percent to 12.03 yuan per share. Everbright Securities fell 4.9 percent to 11.65 yuan.

Non-ferrous metals shares fell after the State Council, or Cabinet, announced on Wednesday that the country will link the resource tax to sale prices for crude oil and natural gas and adjust resource tax rates for the two products.

Beijing Cisri-Gaona Materials and Technology Co., Ltd. fell 6.27 percent to 17.04 yuan. Tongling Nonferrous Metals Group gave up 4.93 percent to close at 21.04 yuan.

China Vanke, the country's largest listed property developer, lost 5.21 percent to close at 7.46 yuan.