Japanese and Australian stocks weakened Thursday as Moody’s Investors Service’s review of U.S. credit ratings for a possible downgrade prompted caution, pressuring financial stocks and some exporters.
In Japan, the Nikkei 225 average shaved off 27.22 points, or 0.3%, to 9,936.12
Hong Kong’s Hang Seng Index gained 13.32 points, or 0.1%, to 21,940.20
In Tokyo, stocks were pressured as an increase in risk aversion pushed the U.S. dollar below the ¥79 level after Moody’s action.
Nintendo Co. fell 1.4%, Toshiba Corp. lost 1.4%, and Toyota Motor Corp. dropped 0.7%.
The dollar was buying ¥79.06 in Tokyo late afternoon trade. Earlier in the day, the greenback hit a low of ¥78.44 — its weakest level against the yen since the March 11 earthquake. It briefly spiked nearly a yen higher during the afternoon, but the gains were short-lived.
Many financial stocks declined around the region in the wake of Moody’s warning.
Shares of Mizuho Financial Group Inc. shed 0.8%, and Sumitomo Mitsui Financial Group Inc. declined 2.3% in Tokyo. Macquarie Group Ltd. shed 2.5% in Sydney, and Korea Life Insurance Co. dropped 1.2% in Seoul.
News Corp. climbed 3.1% in Sydney after it withdrew its $14-billion U.S. bid for the 61% of British Sky Broadcasting PLC it doesn’t already own.
But Australian retailers retreated after a surprise profit warning by high-end department store David Jones Ltd., which sent the stock plunging 18.2%.
In the broader Australian retail sector, Myer Holdings Ltd. lost 6.4%, and Harvey Norman Holdings Ltd. shed 4.6%
CHINA
Resource-sector stocks propped up mainland Chinese stocks as some commodities got a boost after U.S. Federal Reserve Chairman Ben Bernanke indicated the Fed may once again step in to support the economy.
Shanghai’s CSI 300 Index added 9.50 points, or 0.3%, to 3,115.75
Chinese financials in Hong Kong also came under selling pressure, with Bank of China Ltd. losing 1.1% and China Construction Bank Corp. dropping 0.8% in Hong Kong; in Shanghai, however, banks ended on a mixed note, with CCB rising 0.6%, while China Merchants Bank Co. shed 0.6%.
Resource-sector stocks supported market gains in Shanghai and Hong Kong. Jiangxi Copper Co. jumped 2.7%, and gold miner Zijin Mining Group Co. soared 6.3%. In Hong Kong, the stocks rose 3% and 5.5%, respectively. The advance came after gold futures closed at a record level on Wednesday, with crude-oil prices also gaining
In other markets;
Korea’s Kospi Index picked up 0.43 points to 2,130.07
Taiwan’s Taiex Index faded 6.71 points, or 0.1%, to 8,481.35
Singapore’s Straits Times Index inched up 0.28 points to 3,088.70
New Zealand’s NZX 50 Index dipped 14.80 points, or 0.4%, to 3,409.55
Australia’s S&P/ASX 200 Index slid 24.10 points, or 0.5%, to 4,490.70
