Japanese stocks got thrashed Thursday, sending the Nikkei 225 Average down by more than 11% for its worst single-day performance in more than two decades, because of fears about a U.S. recession and a global economic slowdown.
The benchmark Nikkei 225 index nose-dived 1,089 points or 11.4% to close at 8,458.5 while the benchmark Hang Seng index closed down 767.78 points or 4.8% at 15,230.52.
On the economic front, final figures of machine tool orders in September are scheduled for release today. Preliminary data released by the Japan Machine Tool Builders' Association earlier showed that machine tool orders plummeted 20.7% on year to 112.5 billion yen in September, marking the fourth straight month of decline.
Exporters were hit hard as the dollar remained weak against the yen, while trading houses fell as oil hit a 13-month low. Among exporters, Canon sank 12.2%, Sony tumbled 13.0%, Honda Motor slid 10.2%, and Toyota Motor lost 9.3%. Mitsui OSK Lines slumped 14.8% and Kawasaki Kisen Kaisha shed 13.2%. Trading house Mitsubishi Corp fell 15.2% and Mitsui & Co lost 17.0%.
In the banking space, Mitsubishi UFJ shed 9.7%, Mizuho Financial fell 12.7%, and Sumitomo Mitsui plunged 15.1%. Top brokerage Nomura Holdings plummeted 14.0%.
Oil & gas miner Inpex Holdings tumbled 14.2%, Nippon Oil plunged 16.0%, and Nippon Mining Holding slid 15.7%.
CHINA
The Chinese market closed sharply lower after a larger-than-expected drop in U.S. retail sales raised fears of a severe recession in the U.S. While Brokerages plunged on further profit warnings, resources tumbled on concerns about weakening demand. However, some large property developers extended their gains on speculation of broader policy support.
The benchmark Shanghai Composite index closed lower for a third day at 1,909.94, down 84.73 points or 4.25%. The index has lost over 68% from a high of 6,092.06 hit on October 16, 2007.
On the economic front, the National Bureau of Statistics will release its third quarter economic data on October 20, a day ahead of the original schedule, according to the State Council.
Among brokerages, Hong Yuan Securities tumbled by the 10% daily limit after it forecast a 92% fall in third-quarter net profit on year. Changjiang Securities shed 9.4% after the company said that it expects to book a small net profit in the third quarter, down sharply from 1.01 billion yuan a year earlier. CITIC Securities fell 7.7%.
In the banking space, China Merchants Bank lost 5.7% although it projected an 80% jump in net profit for the nine months to September. Industrial and Commercial Bank of China dropped 3.2%. Elsewhere in the financial sector, Ping An Insurance declined 8.3%.
Coal producers fell on the back of slowing demand. China Shenhua Energy tumbled 9.6%. Jiangxi Copper plunged 10% and Aluminum Corp of China gave away 7.2%. China Petroleum & Chemical Corp or Sinopec fell 6.9% and index heavy weight PetroChina slipped 0.6%.
Air China fell 10% after the company issued a profit warning. The carrier said that it expects to post a loss for the nine months to September.
In the property sector, China Vanke rose 1.2% and Poly Real Estate Group gained 2.9%.
Elsewhere:
Taiwan's Taiex closed down 3.3% at 5,075.
Malaysia's KLCI closed down 3.1% at 920.
Singapore's STI closed down 5.3% at 1,951.
Indonesia's Jakarta Composite Index closed down 3.8% at 1,463.
India's Sensex finished down 2.1% at 10,581.
New Zealand's NZX 50 index gave up 4.8% to 2,764.69.
Australia's S&P/ASX 200 index lost 6.7% to 4,013.40.
with files from other wire services
