The dollar and yen strengthened and many Asian markets fell as Japanese companies tapped equity markets to ride out a slump in the world’s second- largest economy. The New Zealand dollar weakened.
In Tokyo, the Nikkei 225 index fell back another 127.33 points, or 1.3%, to 9,549.47
In Hong Kong, the Hang Seng Index gave back 197.17 points, or 0.9%, to 22,643.16.
In Japan, Mitsubishi UFJ Financial Group Inc. declined 4.1% after filing with regulators to raise as much as 1 trillion yen ($11.2 billion U.S.) in its second share sale since January as regulators demand banks bolster capital. A sale of that size would be Japan’s biggest public sale of additional common shares, Bloomberg data show.
Nomura Real Estate sank 8.8%. The real estate investment trust plans to raise as much as 11.5 billion yen from a sale of new shares, according to a filing with Japan’s Finance Ministry.
Investors who want to be "overweight" Japanese stocks during the next year compared with those who plan to be "underweight" dropped this month to the lowest level since November 2002, according to a report yesterday from Bank of America Corp.’s Merrill Lynch & Co. unit.
Japan’s economy is a drag in the region that’s leading the recovery from first global recession since World War II. Singapore today forecast growth of as much as 5% in 2010.
New Zealand’s dollar, known as the kiwi for the flightless bird on its currency, fell against all major counterparts after an opposition political party said it no longer supported the central bank’s efforts to target inflation.
Grand Korea Leisure Co., which started trading on the Korea Exchange, surged 36% to 16,350 won ($14.13 U.S.) from the initial share price of 12,000 won. The company was rated "buy" as Daewoo Securities Co. initiated coverage with a 16,000-won price target.
Singapore’s economy will expand 3% to 5% in 2010 after shrinking as much as 2.5% this year, the trade ministry said today. Gross domestic product jumped at a revised annualized rate of 14.2% last quarter from the previous three months, the second consecutive climb.
Elsewhere:
The Shanghai 300 Composite Index gained 12.21 points, or 0.3%, to 3,642.44.
Taiwan’s Taiex index skidded 6.71 points to 7,759.98.
Singapore’s Straits Times index was up 13.75 points, or 0.5%, to 2,758.79
Korea’s Kospi index gained 16.57 points, or 1%, to 1,620.54
New Zealand’s NZX Index finished 12.77 points higher, or 0.4%, to 3,141.18
Australia’s S&P/ASX 200 picked up 10.20 points, or 0.2%, to 4,749.20
