3:00AM New York, 7:00PM Sydney – Australian stocks corrected as Asian markets fell on the dour outlook from the World Bank. Resource stocks plunged more than 5% on weak gold and crude oil prices.

Australia and other Asian markets closed sharply lower after the World Bank revised its forecast for a deeper global recession. The latest read from the bank suggests a contraction of 2.9% from its earlier forecast of 1.7% fall in the current year.

The bank increased its estimate of the economic contraction despite the trillions of dollars of government stimulus package announced by world’s largest twenty economies.

Investors were looking for an excuse to sell stocks after a global rally that lasts nearly three months.

Energy and metal prices fell around the world and with that resource stocks in Australia closed lower. Crude oil prices dropped 3.9% to $66.90 per barrel and gold prices fell 1.7% to $921 per ounce.

In Sydney trading ASX 200 Index shed 3.1% or 121.3 to 3,796.90.

Of the ASX 200 index stocks, 24 increased, 165 declined, and 12 remained unchanged. GPT Group led advancers in the index shares with a rise of 3.2% followed by Coca-Cola Amatil increasing 1.8%.

Australia’s Gold Price to Rise 9% in 2010

Australian Bureau of Agricultural and Resource Economics reported today that the country’s gold production is forecasted to increase 9% to 239 tons in fiscal 2010 from 246 tons projected earlier.

Output is estimated to rise on the expected start-up of 14 new gold projects and the redevelopment by Newmont Mining of its Boddington mine in Western Australia, which will add between 28 and 33 tons annually.

A Newcrest Mining operation, Ridgeway Deeps, will shore production by six tons a year.

The ABARE noted that gold output in the fiscal year ending June 30 will decline 4% to 219 tons from the previous projection of a 1% drop.

However, gold export for the year ending in June 2009 will rise 16% to a record $17.5 billion and in fiscal 2010 exports are expected to increase 3% to $18 billion.

Fortescue, API Management in Tie-Up

AAP reported today that Fortescue Metals Group and API Management have signed an agreement to investigate the development of shared port facilities at Anketell Point in Western Australia’s Pilbara region.

The two companies are looking to jointly develop port facilities and cut operating costs.

Ankatell Point is a port site within the definitive feasibility study for Aquila''s West Pilbara iron ore project, which is managed by API Management.

API Management is a joint venture between Aquila Resources and U.S. based AMCI.

Aussie Falls

The Australian dollar declined 0.6% to 78.08 U.S. cents against the dollar from 79.88 yesterday.