Japanese stocks fell on Thursday, giving up most of the previous day's gains as weak oil prices fanned fears about a slowdown in the global economy.
In Japan, the Nikkei 225 collapsed 474.68 points, or 2.7%, to 17,240.95, for its lowest closing in three and a half months
The Hang Seng index in Hong Kong dropped 117.47 points, or 0.6%, to 19,817.41
Shares of Apple supplier Alps Electric Co Ltd tumbled 5.1% after Barclays cut its target price to 3,600 yen per share from 4,600 yen per share, citing projections for sluggish iPhone demand.
Sharp Corp fell 4.4% after Barclays cut its target price to 70 yen per share from a previous target of 80 yen per share. Market participants said investors had continued to short the stock as the company struggles with restructuring and governance issues.
Samsung Electronics reportedly said it would mass produce Qualcomm's new Snapdragon 820 mobile processors, boosting its manufacturing business. Samsung shares were down 0.9% at market close.
In Japan, Inpex was down 3.6% and Japan Petroleum fell 2.4% South Korean oil plays were down, some as much as 2.7%.
Japan's biggest refiner JX Nippon Oil & Energy, the core business unit of JX Holdings, said it cut its crude oil refining plan for domestic use in January by 3.6% due to sluggish kerosene demand after a mild winter, Reuters reported. Shares of JX Holdings finished 2.7% lower.
Citi set the 2016 target for the Hang Seng Index at 21,500, preferring financials and yield plays over property.
The bank added that even the potential expansion of the stock-connect for Shanghai and the extension to Shenzhen, which could happen in the first half, will not lead to any significant fund flows into Hong Kong.
Energy plays traded mostly lower, with Santos closing down 8%, Woodside Petroleum off 2.1% and Oil Search falling 1.3%
On the data front, Australia released its December employment data. After adding an unexpected 71,000 jobs in November, the economy shed 1,000 jobs on-month, lower than market expectations.
Elsewhere, the Bank of Korea kept its interest rates unchanged, in line with expectations.
CHINA
The CSI 300 Index regained 65.69 points, or 2.1%, to 3,221.57
In the Chinese mainland, oil stocks closed mostly up, while Hong Kong-listed shares of CNOOC, PetroChina and Sinopec were mixed.
Offering some sign of stability in a generally volatile market, the People's Bank of China set Thursday's yuan mid-point rate at 6.5616, compared with Wednesday's fix of 6.5630 per U.S. dollar. The dollar-yuan pair was nearly flat at 6.5777.
In other markets
In Singapore, the Straits Times Index faded 51.93 points, or 1.9%, to 2,664.57
The Kospi in Korea slid 16.27 points, or 0.9%, to 1,900.01
Taiwan’s Taiex index shrank 81.73 points, or 1%, to 7,742.88
In New Zealand, the NZX 50 faltered 42.58 points, or 0.7%, to 6,109.29
The ASX 200 fell 78.06 points, or 1.6%, to 4,909.38
