Asian stocks fell Tuesday, with the regional benchmark index dropping the most since June, after data showing weaker-than-expected growth in U.S. manufacturing helped extend a rout that wiped about $2.9 trillion U.S. from the value of global equities this year.
Japan’s Nikkei 225 index collapsed 610.66 points, or 4.2%, to 14,008.43
The gauge lost 8.5% last month for the biggest drop among 24 developed markets tracked by Bloomberg. It surged 57% last year, the steepest annual gain since 1972, as Prime Minister Shinzo Abe and the Bank of Japan took action to combat deflation. Volume on the Nikkei 225 was 59% above the 30-day average.
The Hang Seng Index in Hong Kong returned from holiday to surrender 637.65 points, or 2.9%, to 21,397.77. The index entered a correction after completing an 11% decline from its highest level of 2013 reached in December.
Toyota Motor Company, a carmaker that gets about a third of sales in North America, sank 5.7% after the yen strengthened against the dollar and the company’s U.S. sales fell more than forecast.
Australian indices lost 1.8% as the nation’s central bank left its key interest rate at a record low of 2.5%. The decision was predicted by all 32 economists in a Bloomberg survey.
Newcrest Mining Ltd. rose 4.7% after gold advanced, boosting precious-metal producers.
Nippon Paint Co. plunged 21% to 1,337 yen after saying it would sell about 102 billion yen ($1 billion U.S.) in shares. That’s the biggest tumble for the paintmaker since at least 1974.
Lenovo Group sank 16% to HK$8.41 after five brokerages from Morgan Stanley to UBS AG cut their ratings on the world’s largest maker of personal computers, which announced $5 billion U.S. of deals last month to bolster its server and smartphone businesses.
Among shares that rose, Beadell Resources Ltd. climbed 0.7% to 74.5 Australian cents. Gold climbed as much as 1.8% to $1,266.41 U.S. an ounce yesterday.
REA Group Ltd. surged 5% to A$43.78 as profit and sales at the online property website owner climbed more than analysts had forecast.
In other markets;
Markets in Taiwan remain shuttered for holidays
The Shanghai CS300 index dropped 25.33 points, or 1.1%, to 2,202.45
Singapore’s Straits Times Index gave up 25.15 points, or 0.8%, to 2,965.80
Korea’s Kospi Index slipped 33.11 points, or 1.7%, to 1,886.85
In New Zealand, the NZX 50 shed 46.88 points, or 1%, to 4,802.62
In Australia, the S&P/ASX 200 slid 90.85 points, or 1.8%, to 5,097.07
