Asian markets dived Monday, with most indexes falling 4% or more, amid concerns about a raging global financial crisis and the effectiveness of the U.S. financial bailout.
The benchmark Nikkei 225 index closed down 465.05 points or 4.25% at 10,473.09 while the benchmark Hang Seng index plunged 878.64 points or 4.97% to finish at 16,803.76.
On the economic front, the Bank of Japan kicked off its two-day monetary policy meeting on Monday in Tokyo. The central bank will announce its interest rate decision on Tuesday. The bank is widely expected to keep interest rates on hold at 0.50% for the 23rd consecutive month.
Stocks declined almost across the board, led by sea transport, brokerages and steel stocks. The mining sector was the only gainer.
Kawasaki Kisen Kaisha plunged 9.3%, Mitsui OSK Lines tumbled 8.9%, and Nippon Yusen fell 7.5%. Top brokerage Nomura Holdings shed 7.7% and Daiwa Securities Group fell 6.8%. In the steel sector, Nippon Steel sank 7.8% and JFE Holdings slumped 7.2%.
Among banks, Mitsubishi UFJ lost 9.2%, Mizuho Financial declined 7.8%, and Sumitomo Mitsui shed 3.4%.
In the tech sector, Advantest tumbled 8.1%, Fujitsu lost 6.4%, Fanuc dropped 2.3%, and Kyocera fell 2.6%.
Exporters closed weak on the back of a stronger yen. Honda Motor fell 4.6%, Canon lost 4.2%, Komatsu plunged 9.3%, Sony slid 6.6%, and Toyota Motor gave away 4.4%.
Bucking the trend, oil gas miner Inpex Holdings jumped 2.3%, but Nippon Oil gave away 2.7%, and Nippon Mining Holding shed 7.0%.
CHINA
The Chinese stock market closed sharply lower amid worries that the U.S. financial sector rescue plan approved by the House of Representatives may not prevent the U.S. economy from sliding into a recession. The market opened Monday after a week-long holiday. Banks and resources led the losers. The benchmark Shanghai Composite Index closed down 120.05 points or 5.23 pct at 2,173.74 points.
China Merchants Bank and China Shenhua Energy both fell by their 10% daily limit. Among other financial stocks, Ping An Insurance recovered on news that it will take a 15.7 billion yuan charge on its investment in Belgian-Dutch financial group Fortis, as investors focused on its announcement last week that it has terminated a deal to buy a 50% stake in Fortis' asset management arm for EUR 2.15 billion.
Meanwhile, brokerages closed firmer, helped by an announcement from China's securities regulator that it will launch margin trading of securities on a trial basis.
Elsewhere:
Taiwan's Taiex closed down 4.1% at 5,505.
Singapore's STI closed down 5.6% at 2,168.
Malaysia's KLCI closed down 2.0% at 996.
Indonesia's Jakarta Composite index closed down 10% at 1,648.
Australia's S&P/ASX 200 shed 3.3%.
South Korea's Kospi lost 4.3%.
New Zealand's NZX 50 index dropped 3.3%.
with files from other wire services
