Asian stocks fell Thursday as worries about the global economic outlook trumped the appeal of inexpensive stock valuations.
In Japan, the Nikkei 225 average dropped 113.50 points, or 1.3%, to 8,943.76, its lowest finish since March 15. Familiar concerns over the yen’s strength hit the nation’s exporters along with fears global demand could decline.
Hong Kong’s Hang Seng Index slumped 272.76 points, or 1.3%, to 20,016.30, finding support above the psychologically-important 20,000-point level
Stock losses in Tokyo were spread across most exporters, as the U.S. dollar remained below the 77-yen mark. Mazda Motor Corp. tumbled 5.7%, Nissan Motor Co. dropped 3.7% and Hitachi Ltd. slid 2.4%.
Worries that demand in the key U.S. and European markets could be hurt amid the ongoing debt problems also pressured exporters elsewhere in the region, with LG Electronics Inc dropping 6.1% and Hyundai Motor Co. shrinking 4.5% in Seoul. In Taipei, Nanya Technology Corp. fell by the day’s 7% limit.
Acer Inc. shed a further 5.7% in Taipei, on top of Wednesday’s 2.7% decline, and Lenovo Group Ltd. gave up early gains to sink 6.5% in Hong Kong, after Dell’s weak outlook hit technology stocks in the U.S.
The drop in Lenovo shares came in spite of its quarterly profits nearly doubling due to stronger growth in personal-computer shipments.
A few stocks beat the general downtrend, supported by merger-and-acquisition related news.
Hong Kong Exchanges & Clearing Ltd. jumped 3.6% on news the bourse operator was in talks with the Shanghai and Shenzhen Stock Exchanges for a joint venture in Hong Kong.
Japan’s Asahi Group Holdings Ltd. climbed 1.7% after the firm said it will buy New Zealand’s Independent Liquor, in a deal valued at about ¥97.6 billion ($1.27 billion U.S).
In Sydney trading, Foster’s Group Ltd. put on 0.8% after the brewer reiterated its rejection of a takeover offer by SABMiller PLC, and advised shareholders to take no action related to the bid.
Shares in China Shenhua Energy Co. declined 5.4% in Hong Kong and 4.5% in Shanghai as investors locked in gains after the coal producer posted a 16% rise in first-half net profit.
In Sydney trading, Wesfarmers Ltd. edged up 0.4% after delivering a 23% rise in full-year profit.
AMP Ltd. also rose 2.7% on its earnings report. But those gains contrasted with a general weakness in other financial shares on global worries.
Macquarie Group Ltd. fell 1.8% and Australia & New Zealand Banking Group Ltd. lost 0.8%.
In other markets;
Shanghai’s CSI 300 Index erased 51.76 points, or 1.8%, to 2,834.25
Korea’s Kospi Index slid 32.09 points, or 1.7%, to 1,860.58
Taiwan’s Taiex Index fell 126.79 points, or 1.6%, to 7,614.97
Singapore’s Straits Times Index skidded 3.57 points, or 0.1%, to 2,824.96
New Zealand’s NZX 50 Index subtracted 3.88 points, or 0.1%, to 3,286.22
Australia’s S&P/ASX 200 Index regressed 52.70 points, or 1.2%, to 4,251.20
