Asian share markets tumbled Thursday, after some very weak U.S. data raised questions about future demand for Asian exports and fed into worries about the trajectory of global growth.
In Japan, the Nikkei 225 average cut loose 164.57 points, or 1.7%, to 9,555.04
Hong Kong’s Hang Seng Index collapsed 372.59 points, or 1.6%, to 23,253.80
Stocks fell across the board in many regional markets after U.S. jobs data for May, released by payroll-processing firm ADP, fell way short of market expectations overnight. Growth in the U.S. manufacturing sector also receded in May, adding to growth concerns.
The figures, coming on the heels of softer manufacturing surveys from China and the U.K.
Wednesday, sparked a sharp selloff on Wall Street. And they shifted analysts’ focus to a debate on whether the Federal Reserve might consider supporting the U.S. economy by extending its asset purchases, which have been often criticized in Asia as a reason behind inflation
Analysts at Daiwa said weak U.S. manufacturing in particular was "an especially effective barometer of the health of the U.S. economy." They added that the surprisingly weak reading for May suggests that Asia’s exports to the U.S. are likely to decelerate sharply
Several exporters were hit hard in Asia, with Nintendo Co. shrinking 3.7% and Fanuc Ltd. dropping 2.6% in Tokyo, Samsung Electronics Co. sliding 3.1% in Seoul.
Shares of computer maker Lenovo Group Ltd. dropped 2.9% in Hong Kong a day after announcing a 465 million euro ($670 million U.S.) deal to buy German firm Medion AG.
Many financial stocks also weakened, with HSBC Holdings PLC losing 1.8% in Hong Kong, Australia & New Zealand Banking Group Ltd. shares dropping 2.6% in Sydney, Oversea-Chinese Banking Corp. slipping 0.7% in Singapore and KB Financial Group Inc. declining 2.3% in Seoul.
Resource-sector stocks lost ground after commodities were sold down overnight. Japan’s Inpex Corp. fell 2.9%, Cnooc Ltd. dropped 2.2% in Hong Kong, and BHP Billiton Ltd. gave up 2.2% in Sydney
Japanese auto makers declined after U.S. data showed a 33.4% drop in Toyota Motor Corp.’s car sales in May from the year-ago period. Honda Motor Co.’s sales fell 22.5% and Nissan Motor Co.’s slid 9.1%.
Toyota fell 3.3%, Honda dropped 2.4% and Nissan shed 3.2%.
The losses in Tokyo also came amid political uncertainty, related to a no-confidence motion by Japan’s opposition parties against Prime Minister Naoto Kan.
Kan, who had said earlier in the day that he would eventually step down, survived the motion, which was defeated 152-293 in the 480-seat lower house of the Parliament.
In currency trading, the euro climbed against major currencies, and was buying $1.4410 U.S. versus $1.4353 U.S. in late New York trading Wednesday, and 116.64 yen against ¥116.42. The U.S. dollar was fetching ¥80.95 compared with ¥81.07.
In other markets;
Shanghai’s CSI 300 Composite Index fell back 48.47 points, or 1.6%, to 2,955.17
Taiwan’s Taiex Index dumped 70.99 points, or 0.8%, to 8,991.36
Korea’s Kospi index backtracked 27.14 points, or 1.3%, to 2,114.20
Singapore’s Straits Times Index demurred 12.27 points, or 0.4%, to 3,160.60
New Zealand’s NZX 50 lost 25.72 points, or 0.7%, to 3,525.82
Australia’s S&P/ASX 200 capsized 106.90 points, or 2.3%, to 4,600.40
