Asian equities took a beating Tuesday as investors sold down stocks across the region on worries about raging political tensions in the Mideast and North Africa.
Japanese stocks were hammered down as selling pressure mounted after Moody’s Investors Service lowered the nation’s ratings outlook, while New Zealand shares and currency skidded after an earthquake in the country’s second-largest city of Christchurch.
The Nikkei 225 index in Tokyo jettisoned 192.93 points to close at 10,664.70
Hong Kong’s Hang Seng Index collapsed 494.61 points, or 2.1%, to 22,990.80
The political crisis in Libya appeared to be worsening in the face of mounting violence against pro-democracy protesters, amid reports Libyan security forces had fired on demonstrators from war planes and helicopters.
Crude-oil prices soared on the news, raising worries about the impact on some countries struggling to battle weak domestic economic conditions.
April Nymex futures jumped $8.09 to $97.80 U.S. per barrel on Globex. Spot gold dropped $6.60 to $1,400 U.S. a troy ounce.
Airlines around the region were spooked as oil prices climbed, with All Nippon Airways Co. losing 2.6% in Tokyo, Cathay Pacific Airways stumbling 5.1% in Hong Kong, Air China falling 5.1% in Shanghai, China Airlines skidding 4.7% in Taipei and Qantas Airways losing 2% in Sydney.
In afternoon trade, Thai Airways International sank 6.9% and Singapore Airlines gave up 2.4%.
Energy-sector shares fared relatively better, with Woodside Petroleum rising 0.1% in Sydney and Japan Petroleum Exploration Co. rising 0.3%, while Cnooc rose 1.3% in Hong Kong.
Japanese shares lost ground as major banks as well as a number of exporters declined after Moody’s changed its outlook on Japan’s Aa2 rating to negative from stable, citing "heightened concern that economic and fiscal policies may not prove strong enough to achieve the government’s fiscal-deficit-reduction target and contain the inexorable rise in debt."
Shares of Mitsubishi UFJ Financial Group lost 3.6% and Mizuho Financial Group gave up 4.1%.
Exporters also lost ground on worries about geopolitical risks, with Toyota Motor Corp. falling 2.6% and Sharp Corp. losing 3.2%.
In New Zealand, the NZX 50 declined 0.7% after Geonet reported a 6.3-magnitude earthquake struck 10 kilometers southeast of Christchurch, nearly six months after a 7.1-magnitude earthquake struck the area in early September.
It caused extensive damage to buildings and houses and the police said that multiple fatalities have been reported in several parts of the city including two buses being crushed by falling masonry.
Christchurch-based PGG Wrightson and Pyne Gould Corp. lost 5.6% and 8.8%, respectively.
Some Australian banking and insurance stocks were also hit by news of the earthquake in New Zealand. Australia & New Zealand Banking Group gave up 1.2%, while Suncorp Group lost 2.4%.
But mining giant BHP Billiton rose 1.6% after announcing an earnings-accretive five billion Australian dollar ($4.99 billion U.S.) off-market share buyback. BHP also announced the purchase of Chesapeake Energy’s Fayetteville shale assets for $4.75 billion U.S.
In Hong Kong, Alibaba.com shares plunged 8.6% after the company said its chief executive officer resigned following an investigation into a number of fraudulent transactions on its website.
In foreign-exchange markets, the euro was buying $1.3533 from about $1.3676 in early Asian trade. It was also changing hands for 112.48 yen from ¥113.70. The dollar was at ¥83.11 from ¥83.12.
CHINA
Shares in China reversed early gains amid broad losses in the region on geopolitical worries, and as investors began withdrawing funds from the stock market to prepare for the subscription of refining giant China Petroleum & Chemical Corp.’s, or Sinopec’s, convertible bonds on
Wednesday.
The Shanghai CSI 300 Index dropped off 94.33 points, or 2.9%, to 3,163.58.
Baoshan Iron & Steel Co. fell 3.9% and Gemdale Corp. lost 5.6%, while Jiangxi Copper Co. skidded 5.1% in Shanghai.
Hong Yuan Securities fell 5.2% in Shenzhen after saying that it plans to raise as much as CNY7 billion via a private placement to replenish capital and expand its business.
In other markets;
Taiwan’s Taiex Index stumbled 165.55 points, or 1.9%, to 8,673.67
Korea’s Kospi Index fell 35.38 points, or 1.8%, to 1,969.92
Singapore’s Straits Times Index slipped 51.48 points, or 1.7%, to 3,019.12
New Zealand’s NZX 50 skidded 23.23 points, or 0.7%, to 3,358.71
Australia’s S&P/ASX 200 gave back 43.30 points, or 0.9%, to 4,856.70
