Trader's Highlight

DJI-NEW YORK, March 15 (Reuters) - An escalating nuclear crisis in Japan spread fear across financial markets on Tuesday that wiped out about $625 billion in value in stocks and drove investors to the safety of government debt.

Gold fell as much as 3 percent at one point as the worldwide equity selloff forced speculators to sell bullion to cover equity losses. It recovered some losses, however.

The global wave of risk aversion slammed oil prices, driving Brent crude futures below $108 for the first time in three weeks. But unrest in Bahrain and Libya helped pull oil prices off lows.

Benchmark 10-year U.S. Treasury yields declined to their lowest levels in three-months, though much was retraced in the U.S. trading session. Tax-free U.S.municipal bonds, which typically rally when stocks sell off, gained sharply.

NYMEX-NEW YORK, March 15 (Reuters) - U.S. crude oil futures fell nearly 4 percent on Tuesday, their biggest one-day percentage loss in nearly five months, as the worsening nuclear crisis in Japan chased investors from riskier assets.

The International Energy Agency warned that OPEC's cushion of spare oil output to calm the market was at its lowest in four years and that sustained high oil prices will damage world economic recovery.

On the New York Mercantile Exchange, crude for April delivery settled at $97.18 a barrel, down $4.01, or 3.96 percent, after trading from $96.71 to $101.87.

CBOT-CHICAGO, March 15 (Reuters) - Chicago Board of Trade soybean futures fell sharply on Tuesday with the five nearby months down the 70 cent daily trading limit, pressured by a broad-based commodities and equities sell-off as the devastating earthquake in Japan triggered a possible nuclear disaster.

FCPO-JAKARTA, March 15 (Reuters) - Malaysian palm oil futures turned positive late on Tuesday, after earlier falling to a near four-month low, as re-stocking demand continued and low prices tempted buyers, analysts said, reversing losses on worries over risks from Japan's nuclear crisis.

The benchmark May 2011 crude palm oil contract on Bursa Malaysia Derivatives rose 1.5 percent to 3,385 Malaysian ringgit ($1,114) a tonne, and hit a high at 3,420ringgit. The contract earlier hit an intraday trough of 3,250 ringgit, its lowest level since Nov. 26.

REGIONAL EQUITIES-BANGKOK, March 15 (Reuters) - Southeast Asian stock markets dropped on Tuesday as Japan's growing nuclear problems caused widespread selling, with Singapore falling more than 3 percent at one stage to its lowest level since last August.

By 0712 GMT Singapore <.FTSTI> was off 2.6 percent, with turnover topping its 30-day average during the morning. Investors across Asia are fleeing risky assets such as equities and commodities because of uncertainty about world growth after damage caused in Japan by an earthquake on Friday and resulting radiation leaks from nuclear power plants.

Japanese shares plunged 10.6 percent on Tuesday. Asian stocks outside Japan <.MIAP00000PUS> had dropped nearly 3 percent by 0712 GMT and emerging market stocks <.MSCIEF> 1.9 percent.

Among losers in Southeast Asia, PTT , Thailand's biggest listed firm, dropped 2.3 percent as it went ex-dividend, Singapore Telecommunications fell 1.4 percent and Malaysian palm oil stock IOI Corp lost 2.5 percent.

Airline companies fell again because of worries about tourism and travel around the region, with some considering whether they should halt flights to and from Japan.

Thai Airways International fell 4.4 percent, Singapore Airlines lost 3.3 percent and Malaysia's AirAsia , Asia's largest budget carrier by fleet size, dropped 2.8 percent.

By 0717 GMT Indonesia <.JKSE> was down 1.95 percent, Thai stocks <.SETI> fell 1.6 percent by the midsession break and Malaysia <.KLSE> eased 0.8 percent.