Asian stocks tumbled Thursday after minutes from the latest U.S. Federal Reserve policy meeting stoked concerns that central-bank policy-tightening moves will reduce global liquidity, which has supported stocks in recent months.
In Japan, the Nikkei 225 Index plummeted 159.15 points, or 1.4%, to 11,309.13
In Hong Kong, the Hang Seng index collapsed 400.74 points, or 1.7%, to 22,906.67
Minutes of the U.S. Federal Reserve’s January meeting out Wednesday offered differing views from the central bank’s rate-setting board on asset purchases, prompting a sharp fall in U.S. stocks Wednesday.
The Fed, along with other global central banks, has provided massive amounts of liquidity to markets since the onset of the global financial crisis — liquidity which has worked its way through to various asset classes.
While gold prices dropped further in Asia Thursday, commodity-related stocks fell sharply across Asia.
Rio Tinto Ltd. fell 3%, BHP Billiton Ltd. tumbled 3.8% and gold producer Newcrest Mining Ltd. fell 3.7% in Sydney.
In Seoul, steel major Posco gave up 1.8% and Hyundai Steel Co. shed 1.7%.
Heavy-machinery suppliers came under pressure in Japan after U.S. firm Caterpillar Inc. posted a 4% drop in mining- and construction-equipment sales over three months.
Hitachi Construction Machinery Co. fell 3.4%, and heavyweight Fanuc Corp. shed 2.2%.
Earnings didn’t help the Australian resource sector. Oil and gas extractor and electricity provider Origin Energy Ltd. dropping 8.5% after the firm posted a larger-than-expected 34% drop in first-half profit and cut its annual earnings guidance.
Earnings also weighed in Hong Kong, with footwear firm Belle International Ltd. dropping 16.8% after announcing it will post only a small increase in 2012 net profit.
Sony Corp. fell 1.8% in Tokyo after it unveiled its newest videogame console, the PlayStation 4, at a New York event, but failed to show the actual device, helping stoke rumors that the new console won’t include an optical drive.
Nintendo Co.,Sony’s rival, saw its shares rise 1.2%.
Among other gainers, Qantas Airways Ltd. climbed 2.8% after the Australian carrier posted a first-half profit more than double that of a year earlier.
Hong Kong-listed shares of casino operator MGM China Holdings Ltd. rose 2.8% as its fourth-quarter revenue rose 2%, despite a wider-than-expected loss for its U.S. parent, MGM Resorts International
CHINA
The Shanghai CSI 300 Composite 300 index subtracted 92.09 points, or 3.4%, to 2,610.55, with worries about liquidity tightening by the central bank adding to the selling pressure.
Among Chinese commodity producers, Aluminum Corp. of China Ltd., also known as Chalco, fell 2.5% in Hong Kong; in Shanghai, Chalco dropped 3.7%, Jiangxi Copper Co. sank 5.9% and gold miner Zijin Mining Group Co. gave up 2.4%.
One expert cited comments from the Chinese premier late Wednesday that home prices have risen at an excessively fast rate and the government has ordered some restrictions on the market.
In other markets
Korea’s Kospi Index dropped 9.42 points, or 0.5%, to 2,015.22
In Taiwan, the Taiex index subsided 71.64 points, or 0.9%, to 7,957.46
The Singapore Straits Times Index lost 21.29 points, or 0.6%, to 3,287.60
In New Zealand, the NZX 50 index fell back 43.81 points, or 1%, to 4,170.43
In Australia, the S&P/ASX 200 got bruised 118.62 points, or 2.3%, to 4,980.09
