Most Asian markets fell Friday on caution ahead of the U.S. non-farm payrolls data, while Japanese stocks dropped for a third straight day as exporters came under pressure from the yen’s sharp gains overnight.
In Japan, the Nikkei 225 fell another 26.49 points, or 0.2%, to 12,877.53
The benchmark had earlier in the day suffered a bigger drop to record losses of more than 20% from the peak it reached on May 23, entering a so-called bear-market territory. At the day’s close, the Nikkei was 19.2% below the May 23 high.
In Hong Kong, the Hang Seng Index plummeted 263.17 points, or 1.2%, to 21,575.26
Friday’s broad regional declines came amid some fears related to the U.S. jobs data, with analysts at Barclays saying “it appears that markets are positioning for a weaker number.” Economists were expecting an addition of 173,000 U.S. jobs in May up from 165,000 in April.
A Dow Jones Newswires report said a hedge fund run by billionaire investor George Soros was back placing bets in Japan, shorting the yen and snapping up local stocks.
Meanwhile, the U.S. dollar traded under ¥97 for most of the trading day in Tokyo, after dipping below ¥96 overnight — more than two full yen under the ¥99.18 mark it held just before stock trading in Japan ended Thursday.
The yen’s rally against the dollar was accompanied by similar moves in other major currencies, including the euro and the Australian dollar, after European Central Bank President Mario Draghi signaled further monetary easing measures were on the back burner for the moment.
The Nikkei also led major markets as regional benchmarks suffered big losses during the week. The Nikkei fell 6.9% during the week, compared with a 3.9% loss for the Shanghai Composite and the Kospi, a 3.8% decline for the S&P/ASX 200 and a 3.7% drop for the Hang Seng Index.
Exporters in Japan took a hit from fears over the impact on their earnings from a strengthened local currency.
Toyota Motor Corp. lost 2.8%, Mazda Motor Corp. shed 2.6%, Toshiba Corp. retreated 3.4%.
In Sydney, the drop came amid worries over the local economy. The S&P/ASX ended the day nearly 10% lower from the 52-week high it set last month.
Shares of Newcrest Mining Ltd. plunged 7.6% after the miner said it expected to write down up to six billion Australian dollars ($5.7 billion U.S.) due to previous weakness for the metal. The drop came despite an increase in gold futures overnight.
Airline stocks suffered, however, after the Australian Financial Review reported that Air New Zealand Ltd. was seeking permission to further raise its stake in Virgin Australia to 26%, sparking takeover speculation.
Virgin Australia Holdings Ltd. retreated 4.5%, while larger rival Qantas Airways Ltd. dropped 2.7%. But in Wellington trade, Air New Zealand climbed 2%.
In Hong Kong, heavyweight HSBC Holdings PLC dropped 1.5% to weigh on the broader market.
CHINA
In Shanghai, the CSI 300 Index dropped 43.68 points, or 1.7%, to 2,484.16.
The drop came ahead of a long weekend, and before the release of a slew of economic data over the next three days, including monthly inflation and exports.
Mainland Chinese markets were slated to close Monday through Wednesday for the Dragon Boat Festival.
In other markets;
Singapore’s Straits Times Index eased 8.79 points, or 0.3%, to 3,184.72
Korea’s Kospi Index returned from holiday to give up 35.34 points, or 1.8%, to 1,923.85
Taiwan’s Taiex Index took off 0.94 points to 8,095.20
In New Zealand, the Exchange 50 Gross Index fell 15.48 points, or 0.4%, to 4,439.86
Australia’s S&P/ASX faded 43.47 points, or 0.9%, to 4,737.70. Australian markets were also set to close on Monday for a national holiday.
