Asian shares fell sharply Friday, with early losses exacerbated after reports of a lack of agreement on deeper fiscal union at the European Union summit.
Japan’s Nikkei 225 Index dumped 128.12 points, or 1.5%, to 8,536.46
In Hong Kong, the Hang Seng Index tumbled 521.58 points, or 2.7%, to 18,586.20
European and U.S. stocks had ended with sharp losses Thursday, setting the stage for a drop in Asia, after European Central Bank President Mario Draghi told reporters the European Union treaty prohibits "monetary financing." The remarks came as the ECB cut its key cash rate to 1%, as expected.
Draghi also said that the ultimate decisions and political responsibility are in the hands of European Union leaders, who were meeting at a summit in Brussels to further discuss the region’s debt crisis.
The summit failed to secure the full backing of the 27 nations for treaty changes to help fight the region’s debt crisis by more closely tying members-states’ fiscal policies
Resource shares finished broadly weaker across Asia, with miners the worst performers in Australia, where BHP Billiton Ltd.ended down 3.1%, and Rio Tinto Ltd. was lower by 3.6%.
In Hong Kong, Jiangxi Copper Co. fell 5.4%, and oil giant Cnooc Ltd. dropped 3.5%, while in Tokyo, JFE Holdings Inc. lost 3.4%, and Nippon Steel Corp. retreated 3%.
Hong Kong-listed banks also saw selling, with Bank of Communications Co. down 3.8%, and with Agricultural Bank of China Ltd. and HSBC Holdings PLC each falling 3.7%.
Among tech shares, Hynix Semiconductor Inc. lost 3% in Seoul, and Advantest Corp. dropped 3% in Tokyo, after U.S. firms Texas Instruments Inc. and Altera Corp. cut their fourth-quarter earnings outlooks.
Among other major Japanese decliners, shares of Sony Corp. closed 3.3% lower, and Fanuc Corp. lost 3.1%, while those of Sharp Corp. dropped 3.5%.
On the Japanese data front, the country revised its economic growth lower for the third quarter, to 1.4% from an original reading of 1.5%. The revisions incorporated new methods for compiling the data.
CHINA
Meanwhile, China released some key economic data Friday, with the country’s consumer inflation rate easing sharply to 4.2% in November, compared to a 5.5% rise in October.
Shanghai’s CSI 300 index skidded 21.54 points, or 0.9%, to 2,503.46
Other data later in the day showed some slowing in the Chinese economy, with industrial production and urban fixed-asset investment, a closely watched indicator of the Chinese economy, both rising less than expected
In other markets;
Taiwan’s Taiex Index gave back 89.60 points, or 1.3%, to 6,893.30
Korea’s Kospi Index dropped 37.64 points, or 2%, to 1,874.75
Singapore’s Straits Times Index subtracted 33.71 points, or 1.2%, to 2,694.60
New Zealand’s NZX 50 Index inched higher 1.52 points to 3,271.46
Australia’s S&P/ASX 200 Index stumbled 77.70 points, or 1.8%, to 4,203
