SHANGHAI'S key stock index fell yesterday, led by steel makers and gold miners, amid low investor sentiment and declines in global share markets.

The Shanghai Composite Index lost 1.1 percent to 2,897.3.

Japan's benchmark Nikkei 225 dropped 1.4 percent despite an injection of 6 trillion yuan (US$76 billion) by the Bank of Japan yesterday to stabilize markets.

Investors also worried about risks to oil production in the Middle East, amid concerns over an escalation of the turmoil in the region.

"The risks of an unstable overseas situation and possible tightening measures by the Chinese government are weighing on the market," said Cao Xuefeng, an analyst at Huaxi Securities.

Gold miners dropped after bullion prices fell to as low as US$1,386 per ounce during electronic trading in New York.

Zijin Mining Group Co, China's largest gold producer, dropped 3 percent to 7.63 yuan. Shandong Gold Mining Co dimmed 2 percent to 46.61 yuan.

Baoshan Iron and Steel Co fell 5.4 percent to finish at 7.05 yuan. Angang Steel Co shed 3.9 percent to close at 7.92 yuan.