Shares in Asia finished the month on a weak note Thursday, as April’s earlier rallies across the region gave way to nervousness about the U.S. economic recovery and as the Bank of Japan left monetary policy unchanged.
In Japan, the Nikkei 225 index returned from holiday to lose 538.94 points, or 2.7%, to 19,520.01.
The Japanese yen strengthened to a one-month high after the country’s central bank kept policy unchanged amid lingering speculation that further action may needed as the economy struggles.
The Bank of Japan kept its annual asset purchases at ¥80 trillion ($672.2 billion U.S.), ignoring a call from an influential lawmaker urging the bank to increase its purchases to ¥90 trillion.
In Tokyo, Honda Motor Co. shares tumbled 6.7% after the firm’s expectations for operating profit in the fiscal year ending next March came in at 685 billion yen, well below expectations.
In Hong Kong, the Hang Seng index plunged 267.34 points, or 0.9%, to 28,133.
Stocks in Japan and Australia have weakened recently amid a range of concerns: the state of the U.S. economy, the Federal Reserve’s timeline on hiking rates and problems in individual countries concerning stuttering economic growth.
Both Shanghai and Hong Kong markets have seen their rallies weaken after steep runs. Hong Kong gained 13% while Shanghai gained 18.5% this month.
On Thursday, the Hong Kong Monetary Authority warned that higher U.S. interest rates may lead to global financial market volatilities.
In other markets
The Shanghai CSI 300 fell 24.44 points, or 0.5%, to 4,749.89
In Singapore, the Straits Times Index eked up 0.24 points to 3,487.39
The Kospi index in Korea gave up 15.46 points, or 0.7%, to 2,127.12
In Taiwan, the Taiex index slid 33.78 points, or 0.3%, to 9,820.05
In Australia, the S&P/ASX 200 staggered 48.6 points, or 0.8%, to 5,789.98.
In New Zealand, the NZX 50 gained 50.52 points, or 0.9%, to 5,791.34
