Asian shares fell Tuesday on selling prompted by news that Japan’s nuclear crisis has deteriorated to a level matching the Chernobyl disaster and after the International Monetary Fund said global economic growth should slow this year on emerging new risks.
The Nikkei 225 Index dropped 164.44 points, or 1.7%, 9,555.26
Hong Kong’s Hang Seng Index collapsed 326.70 points, or 1.3%, to 23.976.40
Several materials-sector shares tumbled as crude-oil prices and some other resources pulled back on the IMF’s views in its annual World Economic Outlook and after Goldman Sachs withdrew bullish recommendations on some commodities.
The day’s selloff gathered pace after Japan raised the crisis level at the Fukushima Daiichi nuclear-plant accident to the worst possible level on an international scale -- the same level as the 1986 disaster at Chernobyl in present-day Ukraine. More earthquake aftershocks during the day also rattled investors.
A strengthened yen and lingering worries over disruption to production sent most exporters lower, with Toyota Motor Corp. losing 0.6% and Sony Corp. falling 2.9%.
Shares of Tokyo Electric Power Co., the operator of the stricken Fukushima nuclear power plant, erased early gains on the elevated nuclear risk level and was down 10%.
Several energy and commodity stocks in the region sank during the session, after analysts at Goldman Sachs recommended that after the runup in prices over the past several months, risks no longer justified the potential reward for being long on commodities such as crude oil, copper and platinum.
Shares of Inpex Corp. tumbled 5.2% in Tokyo, Woodside Petroleum Ltd. fell 2.8% and Platinum Australia Ltd. shrank 4.4% in Sydney, while PetroChina Co. skidded 4.9% and Jiangxi Copper Co. lost 3% in Hong Kong.
Aluminum-related companies were also pressured after aluminum giant Alcoa reported disappointing quarterly sales figures on Monday. Alumina Ltd. tumbled 6% in Sydney, while Aluminum Corp. of China fell 1.8% and United Co. Rusal slipped 0.5% in Hong Kong.
Banks also fell in Hong Kong after the city’s monetary authority on Monday said it will step up its vigilance against "unsustainable" credit growth, and after Barclays Capital downgraded some lenders, citing the risk of a "potential liquidity squeeze."
BOC Hong Kong Holdings Ltd. and Hang Seng Bank Ltd. two of the stocks downgraded by Barclays, fell 2.4% and 2.2%, respectively.
The losses in Seoul came amid the broad declines in regional markets and as foreign investors snapped their 18-session buying spree. Among major stocks, Samsung Electronics Co. fell 1.3% and Hyundai Motor Co. shed 2.9%.
Earlier on Tuesday, the Bank of Korea kept its benchmark policy rate steady at 3%, as predicted.
But the central bank is widely expected to increase borrowing costs as early as next month, given the economy’s solid growth momentum and upward price pressures.
The euro, which fell as low as $1.4376 U.S. earlier in the Asian day, was recently fetching $1.4441 from $1.4437 U.S.; it slipped against the Japanese currency to ¥121.79, from ¥122.15.
The Australian dollar dropped to $1.0472, from $1.0506 earlier in the session.
In other markets;
Shanghai’s CSI 300 Composite Index eased 6.66 points or 0.2%, to 3,326.77
Korea’s Kospi Index subtracted 32.99 points, or 1.6%, to 2,089.40
Taiwan’s Taiex Index shed 147.68 points, or 1.7%, to 8,732.59
Singapore’s Straits Times Index removed 22.44 points, or 0.7%, to 3,138
New Zealand’s NZX 50 backed off 9.98 points, or 0.3%, to 3,451.34
Australia’s S&P/ASX 200 let go of 72.50 points, or 1.5%, to 4,898.70
