Most Asian share markets ended lower Thursday, with many financials particularly weak amid fresh signs that Europe is struggling to work together to contain its debt troubles.
Markets in Tokyo had the day off
In Hong Kong, the Hang Seng Index subtracted 491.21 points, or 2.5%, to 19,242.50
The losses came ahead of a key meeting of leaders from the Group of 20 major economies, where the European crisis was expected to feature high on the agenda.
Bank and property stocks fell in Hong Kong, with Henderson Land Development Co. losing 3.9%, Standard Chartered PLC retreating 4%, and HSBC Holdings PLC down 2.9%.
The financial sector also recorded losses in Australia, with National Australia Bank Ltd. declining 1% and Macquarie Group Ltd. falling 1.6%.
Australia & New Zealand Banking Group Ltd. traded down 2% after its forex- and commodities-trading division saw profit fall sharply, even as overall net profit rose close to 5% in the second half of the fiscal year.
At a summit last week, European leaders outlined a fresh package of measures to stem the region’s debt woes, but an announcement on Monday that Greece would hold a referendum on the new measures sent markets falling.
In an emergency meeting prior to the G-20 summit, France and Germany warned Greece to accept the latest package of measures at the referendum tentatively scheduled for Dec. 4-5, or lose its aid. German Chancellor Angela Merkel also reportedly said that Europe has a plan should Greece abandon the euro.
Markets are likely to remain highly nervous before the vote, and "risk assets are set to face further pressure," they said.
LG Electronics Inc. dropped 10.2% in South Korea. The Korean consumer electronics firm is aiming to raise at least 1 trillion Korean won ($882 million U.S.) via a rights issue of new shares, Dow Jones Newswires reported, citing people familiar with the matter.
Well-received earnings reports also drove some gains in Asia, with Chinese computer maker Lenovo Group Ltd. rallying 3.2% in Hong Kong after its earnings results beat expectations.
Shares of News Corp. climbed 4.2% In Sydney. The firm’s fiscal first-quarter earnings fell 4.8%, crimped by restructuring charges stemming from the phone-hacking scandal at the company’s now-shuttered News of the World newspaper.
But excluding unusual accounting items, News Corp. said it would have earned 32 cents U.S. a share in the quarter, a figure that met Wall Street estimates.
In other markets;
Shanghai’s CSI 300 index inched up 1.91 points to 2,744.30
Taiwan’s Taiex Index faded 138.14 points, or 1.8%, to 7,460.31
Korea’s Kospi Index dropped 28.05 points, or 1.5%, to 1,869.96
Singapore’s Straits Times Index erased 24.71 points, or 0.9%, to 2,810.04
New Zealand’s NZX 50 Index tacked on 2.62 points, or 0.1%, to 3,311.51
Australia’s S&P/ASX 200 Index deducted 12.80 points, or 0.3%, to 4,171.80
