Several Asian stock benchmarks dropped to multi-month lows Thursday as sentiment remained weak over euro zone debt and as South Korean shares tumbled on increased tensions with North Korea.
Tokyo’s Nikkei 225 tumbled 156.53 points, or 1.5%, to 10,030.31
In Hong Kong, the Hang Seng index slid 33.15 points, or 0.2%, to 19,545.83, with both benchmarks ending at their weakest levels in more than three months.
The Tokyo market was hurt by the losses on Wall Street, despite strong gains for the euro overnight. Shares of Toyota Motor Corp. dropped 2.6% and Honda Motor Co. shed 3%, while Sharp Corp. declined 3%.
Resona Holdings gained 2.4% after the Nikkei reported, citing sources familiar with the matter, that the bank was negotiating with the government to begin repaying two trillion yen ($22 billion U.S.) in public funds. The banking group, which received the public fund infusion when it was effectively nationalized in 2003, intends to buy back and retire 400 billion yen of government-held preferred shares as early as this summer.
In South Korea, a multinational team of investigators concluded Thursday that a torpedo fired by a North Korean submarine sank a South Korean warship in March, killing 46 sailors in one of the country's worst naval tragedies. North Korea warned that any sanctions or retaliation over the sinking would be met with "tough measures, including an all-out war," according to a Yonhap News report, citing North Korea's National Defense Commission.
Securities firms and insurers declined, with Korea Life Insurance Co. dropping 5.6% and Hyundai Securities losing 3.5%. Shipbuilders were hit especially hard amid worries about the euro-zone, with Hyundai Mipo Dockyard Co. slumping 7.9% and Hyundai Heavy Industries Co. slumping 8.5%.
In Sydney, banking, energy and materials stocks tumbled as risk appetite waned further amid sovereign debt troubles in Europe. Woodside Petroleum declined 1.6%, National Australia Bank dropped 2.3% and Fortescue Metals Group tumbled 7.8%.
Healthscope rose 2.9% to 5.33 Australian dollars ($4.42 U.S.) after a private equity consortium lifted its bid to A$5.75 a share from A$5.50. Healthscope has not named the bidders, although a person familiar with the matter said Friday the private equity consortium involves The Carlyle Group LP and TPG.
The euro was at $1.2380 U.S. from $1.2391 U.S. in late New York trade Wednesday, and at 112.84 yen from 113.41 yen. The dollar was at 91.10 yen from 91.54 yen.
Elsewhere;
Shanghai’s CSI 300 fell 36.15 points, or 1.3%, to 2,726.02
Singapore’s Straits Times Index lost 21.03 points, or 0.8%, to 2,753.51
Korea’s Kospi index retreated 29.90 points, or 1.8%, to 1,600.18
Taiwan’s Taiex index surrendered 134.73 points, or 1.8%, to 7,424.43
New Zealand’s NZX 50 Index dropped 10.46 points, or 0.3%, to 3,111.42
Australia’s S&P/ASX 200 gave back 70.60 points, or 1.6%, to 4,316.50, to finish at its lowest level since August
