Asian stocks sank Thursday as uncertainty over U.S. monetary policy led to more declines on Wall Street. Japanese shares stood out with massive losses and a move back into bear-market territory as a further rally in the yen thrashed exporters.
In Japan, the Nikkei 225 plummeted 843.94 points, or 6.4%, to 13,289.32, for its sixth loss in seven trading days. The drop marked the benchmark’s decline for a seventh straight Thursday, including the 7.3% plunge on May 23.
The selloff came as the U.S. dollar fell as low as ¥93.76 during the session, nearly two full yen lower than the ¥95.61-level seen in North America late on Wednesday.
The Nikkei’s 6.4% drop put it 21.9% off from its intraday peak reached on May 23. A bear market is generally defined as a price decline of 20% or more over at least a two-month period, though the current fall has been in a much shorter time frame. The Nikkei briefly entered bear-market territory last Friday.
Hong Kong’s Hang Seng Index shed 467.62 points, or 2.2%, to 20,887.04
In Japan, Shares of Fast Retailing Co. skidded 8.6%, Hino Motors Ltd. slumped 9.9%, Hitachi Construction Machinery Co. plummeted 8.6% and Advantest Corp. lost 9.4%.
Chinese property developers and banks suffered heavy losses during the session.
In Hong Kong, heavyweight stock China Construction Bank Corp. lost 3.2% and China Overseas Land & Investment Ltd. skidded 3.5%; in Shanghai, Poly Real Estate Group Co. lost 4.5%, Citic Securities Co. plunged 6.4% and shares of CCB gave up 1.5%.
In Sydney, mining stocks came under pressure, with BHP Billiton Ltd. lower by 2.6%, and Fortescue Metals Group Ltd. sliding 3.4%.
Rio Tinto Ltd. shares declined 2.4%. The company said it plans to sell its Eagle nickel and copper project to Lundin Mining Corp
In other markets;
The Shanghai Shenzhen CSI 300 lost 84.22 points, or 3.4%, to 2,399.84, after an extended long weekend for the Dragon Boat Festival.
Taiwan’s Taiex Index returned from holiday to drop 164.49 points, or 2%, to 7.951.66.
Singapore’s Straits Times Index erased 22.79 points, or 0.7%, to 3,130.69
Korea’s Kospi Index fell 27.18 points, or 2%, to 1,882.73
In New Zealand, the Exchange 50 Gross Index doffed 40.22 points, or 0.9%, to 4,401.91
In Australia, the S&P/ASX 200 docked 28.69 points, or 0.6%, to 4,695.76.
