Asian markets slumped Wednesday as European concerns bruised sentiment, with stocks in Tokyo deepening losses as the yen strengthened after the Bank of Japan decided against further monetary easing measures.
Japan’s Nikkei 225 Index deducted 172.69 points, or 2%, to 8,556.60
The Hang Seng Index in Hong Kong dropped 252.96 points, or 1.3%, to 18,786.19
The losses came amid fresh European worries. Former Greek Prime Minister Lucas Papademos reportedly warned that preparations for a Greek exit were being considered, with the remarks coming one day ahead of an informal summit of European Union leaders expected to target options to avoid that outcome.
Amid the downbeat global mood ahead of the E.U. summit, overseas demand-tied firms weakened across Asia.
In Hong Kong, Li & Fung Ltd. dropped 2.4%, Europe-exposed fashion retailer Esprit Holdings Ltd. lost 2.8% and ports operator Cosco Pacific Ltd. slumped 4%.
In Seoul, Samsung Electronics Co. dropped 1.5%, and LG Display Co. sank 4%.
Meanwhile, the Japanese yen moved higher after the Bank of Japan decided not to add any additional easing measures, and left its benchmark interest rate unchanged as expected at a policy meeting on Wednesday.
That put the already-strained shares of exporters under further pressure. Shares of Hitachi Ltd., Nintendo Co. and Fujifilm Holdings Corp. each dropped 2.8%.
Ahead of Wednesday’s market open, the government reported a disappointing export performance, including a drop in shipments to China that saw Japan’s trade deficit widen more than expected in April.
Financials were broadly lower in the wake of Fitch’s downgrade. Aozora Bank Ltd. lost 4.6%, and Nomura Holdings Inc. dropped 3.7%.
Renesas Electronics Corp. slumped 9%, losing its 7.4% advance on Tuesday and then some, in the wake of reports that it plans to raise capital.
Losses for resource firms dragged across Asia, pressured by weaker commodity prices overnight including steep drops for copper and oil.
In Sydney, iron-ore miner Fortescue Metals Group Ltd. skidded 5%. In Hong Kong, Jiangxi Copper Co. fell 1.8% and gold miner Zijin Mining Group Co. dropped 2.8%; in Shanghai, the stocks gave up 1.1% and 1.5%, respectively.
Among energy firms, Cnooc Ltd. gave up 1% in Hong Kong, and Santos Ltd. lost 1.9% in Sydney, as crude-oil futures traded below $92 U.S. a barrel in electronic trading.
In the retail sector, shares of Myer Holdings Ltd. plunged 7.8% after the department-store operator reported a slip in quarterly sales and cut its full-year profit estimate.
Stocks in Sydney got little relief from a weaker currency, as the Australian dollar fell to 97.54 U.S. cents from 98.02 cents in North American trading late Tuesday, as investors steered away from risky assets.
In other markets;
Shanghai’s CSI 300 Composite Index fell 10.66 points, or 0.4%, to 2,616.87
Singapore's Straits Times Index sank 43.33 points, or 1.5%, to 2,780.42
Korea’s Kospi Index dipped 20.07 points, or 1.1%, to 1,808.62
Taiwan’s Taiex Index plummeted 127.14 points, or 1.8%, to 7,147.75
New Zealand’s NXZ Index gave back 19.66 points, or 0.6%, to 3,510.20
Australia’s ASX Index slipped 53.97 points, or 1.3%, to 4,067.04
