Japanese shares tumbled Monday to lead Asian markets sharply lower as weak U.S. jobs figures and Hungary's fiscal woes sapped risk-appetite, also sending the euro to multi-year lows against the U.S. dollar and the Japanese yen.
Tokyo’s Nikkei 225 stumbled 380.39 points, or 3.8%, to 9,520.80, its worst daily percentage loss of the year.
In Hong Kong, the Hang Seng index collapsed 401.92 points, or 2%, to 19,378.15
Regional markets skidded off the blocks as global markets were roiled Friday after comments from an official in Hungary's new government that the country faces a Greece-style fiscal meltdown sent the euro tumbling Friday. The new government rushed to calm markets with a pledge to keep the country's official budget deficit goal for 2010 and stressed that Hungary isn't facing any sovereign credit default.
Investor sentiment was also hit by disappointing U.S. jobs data Friday. May non-farm payrolls grew by 431,000, but below the 515,000 increase expected, with Census jobs contributing to most of the rise and private sector employment up by just 41,000 jobs.
In Japan, steelmakers and property companies fell sharply to join shares of exporters exposed to Europe, which were beaten down as the euro weakened further against the yen. JFE Holdings dropped 5.4% and Mitsui Fudosan Co. dropped 5.7%. Toyota Motor sank 4% and Canon shed 5.3%.
Materials stocks were uniformly lower across the region, reacting to the drop in commodity prices. BHP Billiton and Santos slumped 3.5% in Sydney, with Aluminum Corp. of China down 4.4% in Hong Kong, and Korea Zinc off 2.9% in Seoul.
Spot gold was at $1,217.30 per troy ounce, down $2.70 from the New York close Friday. July Nymex crude-oil futures dropped $1.10 to $70.41 per barrel.
In foreign exchange markets, the euro marked a fresh four-year low against the U.S. dollar at $1.1876 as headlines out of Hungary renewed concerns that the euro zone's fiscal and debt problems could spread beyond Greece and Spain, before recovering.
The single currency was buying $1.1952 from $1.1962 U.S. in late New York trade Friday. It also hit its lowest level in more than eight years against the Japanese currency at 108.06 yen, before recovering. It was at 109.51 yen compared with 109.56 yen in late New York trade. The dollar was at 91.62 yen from 91.88 yen.
CHINA
Chinese shares were dragged lower amid the prevailing weak sentiment, with Agricultural Bank of China's impending initial public offering raising concerns that its fundraising activity would shrink liquidity in China markets. The lender is expected to raise between $20 billion and $30 billion U.S.
Shanghai’s CSI 300 lopped off 48.68 points, or 1.8%, to 2,695.72
Banks were among the bigger losers in Shanghai, with China Merchants Bank shrinking 2.9% and Bank of China falling 2.5%. Bank of Communications dropped 3.3% after it announced the pricing details of its planned 33.1 billion yuan ($4.8 billion U.S.) rights share issue.
Shares of Foxconn International Holdings fell 5.5% before trading was suspended in the stock at the company's request, pending a price-sensitive announcement. A company spokesman said the announcement was regarding planned salary increases in China, Dow Jones Newswires reported.
Elsewhere;
Singapore’s Straits Times Index gave back 54.63 points, or 2%, to 2,751.88
Korea’s Kospi index subtracted 26.16 points, or 1.6%, to 1,637.97
Taiwan’s Taiex index slumped 186.76 points, or 2.5%, to 7,157.83
New Zealand markets had the day off
Australia’s S&P/ASX 200 dumped 123.50 points, or 2.8%, to 4,325.90
