Asia stocks fell sharply Thursday, with Hong Kong slammed to its biggest single-session percentage loss in three-and-a-half months, while Japan and China were also dragged lower as investors fretted about the impact of fiscal challenges in Washington and the potential fallout for Asian economies.
Japan’s Nikkei 225 Index fell 135.74 points, or 1.5%, to 8,837.15
In Hong Kong, the Hang Seng index collapsed 532.94 points, or 2.4%, to 21,566.91, its steepest plunge since the index tumbled 3% on July 23.
One expert on Thursday forecast a negative print for third-quarter GDP in Hong Kong next week, with the data likely to show the city’s economy has shrunk for two consecutive quarters, technically marking a recession underway.
Fundamentals in the Chinese city continue to deteriorate, according to the expert, who also warned of “event risk” arising from the Nov. 16 economic release: the prospect of a sharp correction in stocks.
Korean exporters, sometimes seen as bellwethers for global demand, trading lower included SK Hynix Inc., up 0.2%; and LG Electronics Inc.,
A Bloomberg News report said LG Electronics, along with Japan’s Panasonic Corp., could face fines from the European Union for allegedly fixing cathode-ray-tube prices. Shares of Panasonic lost 0.3% in Tokyo.
Meanwhile, other Tokyo-listed exporters fell, with the dollar buying 79.94 yen Thursday, down from ¥79.98 late Wednesday and from ¥80.36 Tuesday.
Among Japanese exporters, Canon Inc lost 2.5%, Pioneer Corp. fell 4.1% and Honda Motor Co. dropped 3.5%.
Isuzu Motors Ltd., however, managed to gain, rising 4.7% after reporting a 25% increase in first-half net profit.
Many blue-chip exporters traded lower in Hong Kong as well, with Li & Fung Ltd., down 3.5%, and Esprit Holdings Ltd. lower by 2.1%.
CHINA
In Beijing, a week-long conference to usher in China’s next leaders and policies kicked off Thursday, although as yet there was little clarity on content or timing of any announcements.
The Shanghai CSI 300 Composite Index lost 42.10 points, or 1.8%, to 2,245.41
But with U.S. voters choosing President Barack Obama over challenger Mitt Romney, who had taken a harder line on China, Sino-U.S. relations now looked less likely to sour further.
In other markets
In Singapore, the Straits Times Index capsized 31.02 points, or 1%, to 3,012.25
Korea’s Kospi index slid 23.14 points, or 1.2%, to 1,914.41
Taiwan’s Taiex Index staggered 44.55 points, or 0.6%, to 7,242.63
New Zealand’s NZX 50 gained 12.15 points, or 0.3%, to 3,955.25
Australia’s ASX Index erased 32.64 points, or 0.7%, to 4,483.82
