Asian stocks dropped sharply Friday after reports of liquidating hedge funds caused more credit market-related anxiety and triggered a sell-off on Wall Street. Financial shares across the region were hit hard, with sharp losses in issues such as Mitsubishi UFJ Financial Group in Japan, Macquarie Bank in Australia and DBS Group Holdings in Singapore.
In Tokyo, Nikkei 225 index shed 406.51 points, or 2.37 percent, to close at 16,764.09 while in Hong Kong, the blue chip Hang Seng Index fell 646.7 points, or 2.9 percent, to 21,792.70.
Shipping and consumer finance shares led Japan's decline. The country's largest shipping company, Nippon Yusen K.K., dropped 4.48 percent to 1,065 yen ($9.03). Consumer lender Takefuji Corp. dropped 5.26 percent to 3,420 yen ($28.98).
Also dragging down the Tokyo stock market was a higher yen against the dollar. A stronger yen tends to shrink Japanese exporters' overseas income and makes their products less competitive abroad. Nissan Motor Co. fell 3.68 percent to 1,205 yen ($10.21).
Steel and oil shares also fell, with Kobe Steel sinking 3.87 percent to 422 yen ($3.58) and Nippon Oil Corp. falling 6.37 percent to 896 yen ($7.59).
ELSEWHERE:
MANILA: Philippine shares plunged Friday with jittery investors cashing in gains in the wake of Wall Street's slump and the subsequent slide in regional Asian markets. The 30-company Philippine Stock Exchange Index fell 103.24 points, or 3 percent, to 3281.96 -- its third sharpest single-day drop this year. Thursday, the market rose 0.3 percent.
SEOUL: South Korean shares plunged Friday following steep declines on Wall Street over credit fears related to spreading turmoil from U.S. subprime mortgages. The Korea Composite Stock Price Index fell 80.19 points, or 4.2 percent, to close at 1,828.49 after falling as much as 5 percent. Thursday in New York, the Dow Jones industrial average fell 387.18, or 2.83 percent, to 13,270.68.
SHANGHAI: China's shares fell slightly Friday, snapping a record-setting, five-day climb as real estate stocks were dragged down by worries about U.S. subprime mortgage woes. The benchmark Shanghai Composite Index ended down 0.1 percent at 4749.37 after hitting new record highs in each of the past five sessions.
SINGAPORE: Singapore shares slumped Friday with other Asian markets as turmoil driven by U.S. mortgage problems outweighed the release of strong domestic second quarter economic data. The city-state's benchmark Straits Times Index was down 98.8 points, or 2.89 percent, by midday at 3,314.37.
TAIPEI: Taiwan shares plummeted Friday, weighted down by the overnight meltdown on Wall Street and weaknesses on other Asian bourses. The Weighted Price Index of the Taiwan Stock Exchange fell 251.29 points, or 2.7 percent, to close at 8,931.31 points on moderate volume.
WELLINGTON: New Zealand's NZX 50 index declined 1.2% to 4,109.84.
SYDNEY: Australia's S&P/ASX 200 slumped 3.7% to 5,936.
With files from wire services
