Energy shares such as BHP Billiton and Inpex Corp. were dragged down in the resource sector in Asia Thursday after a steep decline in crude-oil prices and job losses in the U.S. added to fears about worsening economic conditions.
The benchmark Nikkei 225 Index slid 362.82 points, or 3.93%, to close at 8,876.42 while the benchmark Hang Seng Index slid 571.55 points, or 3.81%, to close at 14,415.91.
Among economic news on Thursday, foreigners remained net sellers of Japan-based stocks, bonds and notes last week, while Japan residents remained net buyers of foreign stocks, bonds and notes. Japan's Ministry of Finance reported that foreign residents sold a net 18.7 billion yen worth of Japan stocks for the week ending January 3, and sold a net 24.2 billion yen worth of Japan-based bonds and notes. Domestically, Japan residents were purchasers of a net 61.5 billion yen of foreign stocks for the week, and bought a net 442.9 billion yen in foreign bonds and notes.
Tech stocks slid following chip maker Intel's warning of lower revenue in the fourth quarter. Advantest slumped 11.99%, Tokyo Electron fell 12.99%, Kyocera dipped 6.65% and Fanuc dropped 8.20%. Banking stocks were also trading weak. Mitsubishi UFJ slid 3.78%, Mizuho Financial slipped 3.10%, Sumitomo Mitsui Financial shed 4.95% and Resona Holdings eased 0.27%.
Export-oriented stocks fell on the back of a stronger yen. Canon dipped 4.23%, Komatsu slid 5.74%, Sony lost 4.56% and Sharp gave away 6.36%. Automaker Toyota eased 0.32%, Honda dipped 2.94% and Nissan slipped 3.48%. Mazda rose 4.30%. However, Mitsubishi Motors rose 3.60% after the Nikkei business daily reported that the company will begin supplying electric cars to PSA Peugeot Citroen Group as early as next year on an original equipment manufacturer, or OEM basis.
Oil-related stocks slid following the fall in crude oil price overnight. Inpex tumbled 8.98%, Nippon Oil dropped 5.90% and Showa Shell lost 6.43%. Trading house Mitsubishi tumbled 4.47%, Mitsui & Co. dipped 5.70%, Marubeni lost 5.60% and Itochu shed 4.75%.
Retailer Aeon Co. lost 4.12%. The company warned on Wednesday that it might post its first annual net loss in seven years due to tumbling sales and a writedown at its U.S. unit Talbots. The company reported a net loss for the nine months ended November.
Mitsui Chemicals shed 6.12% after the company said on Wednesday that it has deepened cuts to naphtha cracker output due to falling demand amid a global economic slowdown.
Elsewhere:
The benchmark Korea Composite Stock Price Index, or KOSPI, lost 22.47 points, or 1.83%, to close at 1,205.70.
The benchmark S&P/ASX 200 index lost 85.40 points, or 2.26% to finish at 3,694.30.
The benchmark NZX50 index declined 7.59 points, or 0.27% to finish at 2,756.65.
Singapore's Straits Times Index slipped 53 points, or 2.82%, to finish at 1,828.
China's Shanghai Composite Index dropped 46 points, or 2.38%, to close at 1,878.
Taiwan's Weighted Index shed 254 points, or 5.30%, to close at 4,536.
Indonesia's Jakarta Composite Index lost 19 points, or 1.32%, to settle at 1,403.
with files from other wire services
