Most Asian markets ended lower Wednesday as financials broadly declined after big overnight losses on Wall Street and on concern about European banks.
Steelmakers such as Posco also fell on a weak outlook for prices.
Japan's Nikkei 225 tumbled another 111.07 points, or 1.5%, at 7,534.44, its lowest finish since October.
Hong Kong's Hang Seng Index, however, was positive on the day, 70.60 points, or 0.6%, to 13,016.00, experts attributing the recovery to investors covering their short-sales positions.
The recovery in Hong Kong was also helped by shipping-related stocks after a key index for marine-freight rates advanced overnight, with China Cosco Holdings Co. up 7.3% and China Shipping Development Co. climbing 10.6%.
Hong Kong gold stocks were providing some support for the market, with Zhaojin Mining Industry Co. up 3.9% and Sino Gold Mining up 3.7%.
Financials were broadly under pressure across Asia, as concerns about banks in Eastern Europe added to the gloom. Japan's Mitsubishi UFJ Financial Group ended down 3.1% and Nomura Holdings lost 6%, while South Korea's KB Financial Group dropped 6.9%.
Westpac Banking Group fell 1.8% in Sydney after it said it had a near six-fold increase in charges for bad and doubtful debts in its first quarter.
Shares of several steelmakers also declined after Taiwan's China Steel Corp. Tuesday said it will cut prices of steel products in April and May, with Goldman Sachs analysts saying "near-panic conditions seem to prevail in the spot markets as the usual post-Chinese New Year demand [for steel] has failed to materialize this year."
Posco dropped 3.1% and Hyundai Steel gave up 1% in Seoul, Nippon Steel Corp. shed 0.8% in Tokyo. In Taipei, China Steel dropped 2%.
Building-products and sugar producer CSR fell 17% in Sydney after it downgraded its annual profit forecast, as Australian and New Zealand residential-construction markets declined more than expected.
South Korean shares were hurt by renewed worries about foreign-currency liquidity in the local banking sector amid the continued sharp fall of the won against the dollar. The U.S. dollar ended the session at 1,467.20 won in Seoul, for its lowest close since Dec. 5.
In Taiwan, shares were lower ahead of the release of fourth-quarter gross domestic product data. Technology stocks were hurt by ProMOS Technologies's limit-down 7% decline after it said 97.4% of its bondholders applied to redeem bonds, but the loan ProMOS received Monday accounts for less than a third of that amount.
After the market closed, the Taiwan government said GDP contracted a further-than-expected 8.36% in the fourth quarter. The central bank announced an unscheduled quarter-point interest-rate cut to 1.25%.
New Zealand shares were led down by stocks which were perceived to have high levels of debt, with Fisher & Paykel falling 11% and chipmaker Rakon down 13%.
CHINA
China’s Shanghai Composite Index hurtled earthward 109.45 points, or 4.6% to 2,275.84. One of the world’s best performing markets so far this year had its biggest single-day percentage loss since November, as investors locked in profits.
Chinese banks dropped in Shanghai after Morgan Stanley cut their earnings estimates and share-price targets, with Industrial & Commercial Bank of China falling 4.2% and China Construction Bank losing 4.3%.
China shares were extending Tuesday's fall, with reports that regulators were investigating whether some of January's hefty yuan-denominated bank lending has flowed into stocks. Baoshan Iron & Steel Co. shrank 5.6% in Shanghai.
Elsewhere:
Singapore’s Straits Times Index picked up 13.14 points, or 0.8%, to 1,651.06
Taiwan’s Taiex Index gained 6.59 points or 0.2%, to 4,498.37
South Korea’s Kospi fell 14 points or 1.24% to 1,113.19
New Zealand’s NZX 50 Index gave back 51.62, or 1.9% to 2,621.00
Australia’s S&P/ASX 200 Index lost 51.10 points or 1.5% to 3,413.20.
