Asian stock markets were rocked by another day of hefty losses Monday as Standard & Poor’s historic downgrade of U.S. government debt raised fresh concerns about the global economy and pushed investors to sell risky assets.
In Japan, the Nikkei 225 average fell another 202.32 points, or 2.2%, to 9,097.56
Hong Kong’s Hang Seng Index shed 455.57 points, or 2.2%, to 20,946.10
Monday’s performance marks another day of heavy losses in Asia. Last week, Taiwan’s Taiex sank more than 9% and the Kospi lost 8.9% in Seoul. Also last week, Japanese shares had dropped more than 5%, Hong Kong shares fell almost 7% and Australian shares lost in excess of 7%.
While the latest trigger for the tumble came from Standard & Poor’s downgrade of U.S. debt to AA+ from AAA, worries that European sovereign debt troubles were spreading have also grabbed investor attention for several weeks now.
The losses came even as financial and monetary officials from the Group of Seven major economies released a statement late Sunday, saying they were "committed to addressing the tensions stemming from the current challenges on our fiscal deficits, debt and growth."
Officials from the Group of 20 also issued a similar statement Monday, without detailing specific actions.
Meanwhile, the European Central Bank also said late Sunday that it "will actively implement" its bond-buying program, indicating it will likely buy Spanish and Italian government bonds in an effort to prevent sovereign-debt contagion taking hold in some of the region’s largest economies
Banking, insurance and other financial stocks lost more ground during the session on Monday, with HSBC Holdings PLC falling 1.5% and Bank of China Ltd. sliding 3.6% in Hong Kong.
Sumitomo Mitsui Financial Group Inc. dropped 2.2% and Shinsei Bank Ltd. fell 3.3% in Tokyo. KB Financial Group Inc. skidded 7.5% in Seoul and Cathay Financial Holding Co. slumped 6.9% in Taipei.
As benchmark Nymex crude-oil futures traded around $84 U.S. a barrel with investors concerned about the outlook for demand, energy stocks lost ground, with JX Holdings Inc. down 2.7% in Tokyo and Cnooc Ltd. down 4% in Hong Kong. PetroChina Co. shed 3.1% in Hong Kong as well as Shanghai.
Exporters and companies with a significant overseas presence were also pressured amid worries about the global economic outlook, with Honda Motor Co. shares off 3% in Tokyo and Kia Motors Corp. down 3.9% in South Korea.
Local property developers in Hong Kong fell after data showed that home sales over the weekend tumbled 23% from the same period last week, and on worries about easing property prices. Shares of New World Development Co. lost 4.9% and Sino Land Co. shed 2.5%
In other markets
Shanghai’s CSI 300 Index let go of 103.52 points, or 3.6%, to 2,793.90
Korea’s Kospi Index dipped 74.30 points, or 3.8%, to 1,869.45
Taiwan’s Taiex Index collapsed 300.33 points, or 3.8%, to 7,552.80
Singapore’s Straits Times Index slipped 110.78 points, or 3.7%, to 2,884
New Zealand’s NZX 50 Index stumbled 91.06 points, or 2.8%, to 3,185.45
Australia’s S&P/ASX 200 Index dumped 119.30 points, or 2.9%, to 3,986.10
