Asian stock markets skidded Monday, as investors feared ongoing unrest in Egypt could spread and push up prices of commodities.
Japan’s Nikkei 225 Index dropped off 122.42 points, or 1.2%, to 10,237.90
Hong Kong’s Hang Seng Index fell back 169.68 points, or 0.7%, to 23,447.30
Six days of nationwide protest against President Hosni Mubarak’s three-decade rule have shaken Egypt and left at least 125 people dead.
In Sydney, the increased risk aversion hit mining stocks, with BHP Billiton Ltd. ending down 1.0% and Rio Tinto losing 2.1% despite Friday’s 1.0% rise in London Metals Exchange copper prices.
Financials, industrials, consumer discretionary and health-care shares were also under pressure.
Oil and gold stocks were outperforming, thanks to the stronger oil and gold prices; Santos Ltd was up 0.4%, and Newcrest Mining Ltd. was up 0.5%.
Southern Cross Media Group Ltd. was down 11.6% after it said it made a friendly offer of A$741.3 million ($735.8 million U.S.) to take over rival broadcaster Austereo Group, shares of which rose 10.6%.
Japanese exporters’ shares were hit by the concerns about escalating tensions in Egypt, and also by the yen’s strength earlier in the session, as investors sought the perceived safety of a lower-yielding currency.
Among exporters, Tokyo Electron Ltd. shed 1.5% and Sony Corp. lost 2.7%. Fujitsu Ltd. dropped 6.2%, and Konica Minolta fell 7.8% after both cut their full-year profit forecasts. Inpex Corp. was up 0.6%, helped by the sharp spike in crude prices.
Nissan Motor Co. fell 2.2% on news it is suspending operations at an auto plant in Egypt.
In South Korea, the political turmoil in Egypt offered Korean investors an excuse to take profits, according to some experts. However, they said the Egyptian crisis was unlikely to have a lasting effect, as "its impact on the stock market is fundamentally different to the impact from the European debt problem and is expected to be short-lived."
Most blue-chip stocks were lower, with Samsung Electronics down 2.9%, Hyundai Motor down 4.8% and KB Financial Group off 0.9%.
In foreign-exchange markets, the political crisis in Egypt initially lifted the yen, although the Japan’s unit erased those gains by the end of the session.
The euro was at $1.3610 against the dollar, from $1.3612 in late New York trade on Friday, and at ¥111.76 against the yen, from ¥111.70. The dollar was at ¥82.11, from ¥82.10.
CHINA
In China, oil and gold stocks were leading the market up on prices for those resources.
Shanghai’s CSI 300 Index prospered 39.77 points, or 1.3%, to 3,076.51, on thin trading volumes ahead of the Chinese Lunar New Year holiday, which starts later this week.
Shandong Gold-Mining was up 7.5% while PetroChina gained 1.2% and Sinopec Shandong Taishan Petroleum advanced 2.1%.
Some Hong Kong-listed mainland Chinese developers rebounded following recent losses that were triggered by last week’s new tightening measures from Beijing for the property sector.
In other markets
Markets in Taiwan had the day off
Korea’s Kospi Index faded 38.14 points or 1.8% to 2,069.73
Singapore’s Straits Times Index gave back 49.97 points, or 1.6%, to 3,179.72
New Zealand’s NZX 50 slid 13.90 points, or 0.4%, to 3,338.74
Australia’s S&P/ASX 200 subsided 21 points, or 0.4%, to 4,753.90.
