Asian shares declined Thursday as escalating fighting in Libya and China’s unexpected trade deficit for February sparked a selloff in the region, and with a Moody’s downgrade of Spain’s government-bond ratings also weighing on sentiment.
The Nikkei 225 index in Tokyo dumped 155.12 points, or 1.5%, to 10,434.40
Hong Kong’s Hang Seng Index collapsed 195.22 points, or 0.8 %, to 23,614.90.
Shares of Japan’s Osaka Securities Exchange Co. rallied 6.9% following local media reports that it will begin talks on integration with the unlisted Tokyo Stock Exchange.
Fanuc Ltd. fell 2.7% in the downbeat Tokyo market despite a Nikkei report that the company plans to double robot production capacity in anticipation of growing demand.
In New Zealand, a 0.5-percentage-point interest-rate cut by the Reserve Bank of New Zealand dragged on the local currency but failed to support stocks.
New Zealand shares reversed earlier gains despite a 50-basis-point interest-rate cut from the country’s central bank to 2.50%, in a bid to help the domestic economy in the aftermath of the Christchurch earthquake last month.
The move drove the New Zealand dollar as low as 73.40 U.S. cents. More recently, the Kiwi was buying 73.45 cents, from 73.90 cents U.S. prior to the rate cut.
Blue-chip plays were mixed with Telecom Corp. of New Zealand Ltd. falling 1.9% and Nuplex Industries Ltd. shedding 2.5%.
Regional markets, which were already on the back foot due to jitters over higher crude oil prices, reacted negatively to the Chinese data on worries a slowdown in the world’s second largest economy could impact global growth.
Persistent selling by offshore investors hurt Seoul shares, with technology shares continuing to weaken on concerns over their first-quarter earnings. Samsung Electronics Co. dropped 2.7% and LG Electronics Inc. fell 1.8%.
In Sydney, mining stocks continued to lose ground as demand was hurt by the Chinese trade figures, as well as data showing the number of Australians employed fell 10,100 in February, compared with an expected rise of 20,000. BHP Billiton Ltd. fell 3% and Fortescue Metals Group Ltd. dropped 5.5%.
In foreign-exchange trade, the U.S. dollar rose against the euro as heightened tensions in Libya and the unexpected China trade deficit encouraged a selloff in risk-sensitive currencies. The euro was fetching $1.3816 from $1.3907 U.S. late in New York on Wednesday, and 114.38 yen from ¥115.06. The dollar was at ¥82.79 compared with ¥82.74.
The Australian dollar tumbled on the Chinese trade figures and the employment data. It was recently at $1.0029 from $1.0109 U.S. prior to the jobs report.
CHINA
The Shanghai CSI 300 Index fell back 58.60 points, or 1.8%, to 3,280.26
The fall in Shanghai came after the country posted a $7.3-billion U.S. trade deficit in February, compared with expectations of a surplus, as exports and imports growth slowed sharply, bearing the impact from the Chinese New Year holidays during the month
Stocks suffered broad losses in Shanghai, with China Coal Energy Co. falling 3%, Citic Securities Co. dropping 4%, China Cosco Holdings Co. losing 2.7% and Maanshan Iron & Steel Co. sliding 2.3%.
In other markets;
Taiwan’s Taiex Index backpedaled 107.12 points, or 1.2%, to 8,642.90
Korea’s Kospi Index dropped 19.89 points, or 1%, to 1,981.58
Singapore’s Straits Times Index skidded 17.46 points, or 0.6%, to 3,075.44
New Zealand’s NZX 50 stumbled 8.19 points, or 0.2%, to 3,406.24
Australia’s S&P/ASX 200 went lower 68.10 points, or 1.4%, to 4,699.70
