The South Korean market led the way for hefty stock losses in Asia Friday, as risk appetite evaporated on a fresh wave of concerns about global growth, with shipbuilders, exporters and financials among the hardest hit.
In Japan, the Nikkei 225 average lost another 224.52 points, or 2.5%, to 8,719.24.
Hong Kong’s Hang Seng Index slumped 616.35 points, or 3.1%, to 19,399.90
South Korea’s Kospi suffered its worst one-day percentage loss since its 6.7% plunge on Nov. 20, 2008, with program trading briefly suspended in a bid to arrest the declines. The performance gave the index a net loss of 18.2% in August, by far the worst performance among major regional indexes.
Several stocks in the shipbuilding, refining and petrochemicals and automobile sectors tumbled by more than 10%, including Daewoo Shipbuilding & Marine Engineering, Korea Kumho Petrochemical Co. and Hyundai Motor Co.
Asia’s losses mirrored a sharp selloff in the U.S. on Thursday where fears about the health of the economy were heightened after factory activity in the Philadelphia region weakened to the lowest level in more than two years.
Deutsche Bank downgraded its China growth outlook Friday, saying the slowdown and even the potential for recession in Europe and the U.S. now outweighed domestic credit tightening as the biggest risk to China’s economy. The call came on the heels of a downgrade to global growth forecasts by Morgan Stanley Thursday.
In Tokyo, there was no respite for exporters from worries over a firm yen, with a dollar buying 76.38 yen. Nissan Motor Co. slid 4.4% and shares in Sony Corp. fell 3.2%.
Heavy-equipment maker Sumitomo Heavy Industries Ltd. skidded 5.4% and shipping firm Kawasaki Kisen Kaisha Ltd. tumbled 4.3%.
Energy and other resource stocks also suffered big losses on worries global demand for commodities would suffer. Woodside Petroleum Ltd. shed 3.9% in Sydney, PetroChina Co. lost 4.1% in Hong Kong and Inpex Corp. dropped 4.7% in Tokyo, as Nymex crude-oil futures extended their overnight plunge during Asian hours.
Among other resource stocks, Rio Tinto Ltd. sank 5.3% in Sydney, while Aluminum Corp. of China Ltd. fell 8% in Hong Kong and 1.4% in Shanghai.
Financial stocks tracked weakness in the U.S. and Europe, with Nomura Holdings Inc. down 3.7% in Tokyo. Heavyweight HSBC Holdings PLC fell 4.2% in Hong Kong and Cathay Financial Holding Co. shed 4.5% in Taipei.
Bank of Communications Co. declined 5.4% in Hong Kong and 1.3% in Shanghai. The lender kicked off interim earnings for the large Chinese lenders with a profit growth above expectations, but disappointed by not paying an interim dividend.
In Sydney trading, Australia & New Zealand Banking Group sank 4.5%, after it delivered a trading update which showed mild rise in third-quarter profit and a 39% drop in trading income.
Billabong International Ltd. plunged 26.1% after the surfwear retailer, which is heavily exposed to currency fluctuations, posted an 18% fall in full-year profit and withdrew guidance.
Some consumer and telecom stocks offered a rare bright spot, as investors sought out defensive sectors. Hite Brewery Co. jumped 6.2% in Seoul and China Mobile Ltd. added 0.9% in Hong Kong.
In other markets;
Shanghai’s CSI 300 Index erased 26.59 points, or 0.9%, to 2,807.66
Korea’s Kospi Index stuttered 115.70 points, or 6.2%, to 1,744.88
Taiwan’s Taiex Index fell 272.01 points, or 3.6%, to 7,342.96
Singapore’s Straits Times Index dropped 91.33 points, or 3.2%, to 2,733.63
New Zealand’s NZX 50 Index subtracted 18.38 points, or 0.6%, to 3,267.84
Australia’s S&P/ASX 200 Index stepped back 149.30 points, or 3.5%, to 4,101.90
