Asian stocks plunged in Monday trading, with some shares hitting multiyear lows, after renewed fears over Europe’s sovereign-debt crisis led to steep selling in U.S. and European markets at the end of last week.
In Japan, the Nikkei 225 average fell 201.99 points, or 2.3%, to finish the week’s first session at 8,535.67
Hong Kong’s Hang Seng Index plummeted 836.09 points, or 1.2%, to 19,030.50
The losses came after the Dow Jones Industrial Average and the S&P 500 each dropped 2.7% on Friday and the Stoxx Europe 600 index fell 2.6%.
Among developments hitting shares Friday in Western markets was the resignation of European Central Bank board member Juergen Stark, a proponent of higher interest rates, whose departure was seen by some as signs of a policy dispute at the ECB.
Many financial shares, which are especially sensitive to developments in the European debt situation, plunged in Asia on Monday.
In Sydney, Westpac Banking Corp. lost 4.6%, Macquarie Group Ltd. fell 4.2%, and Commonwealth Bank of Australia gave up 4.1%.
In Hong Kong, HSBC Holdings PLC -- which carries a heavy weighting on the Hang Seng Index -- fell 5.5% in morning trade, hitting a two-year low. HSBC is headquartered in London and has large exposure to Europe. The share drop also came on news that the lender’s Hong Kong chief Mark McCombe was leaving the company to work for BlackRock Inc.
Local worries about asset quality and possible fundraising needs for Chinese banks also worked to pull mainland Chinese banks down, led by a 5.8% tumble by Agricultural Bank of China Ltd.
Insurers also suffered severely in the financial sell-off in Hong Kong, with Ping An Insurance Group Co. tumbling 5.9%, China Life Insurance Co. diving 5.8%, and AIA Group down 5.2%.
Japanese banks also fell sharply, with Mitsubishi UFJ Financial Group Inc. down 2.7%, while smaller rivals Shinsei Bank Ltd. and Aozora Bank Ltd dropped 3.5% and 3.3%, respectively.
But even worse losses hit Japanese exporters with large European exposure: Sony Corp. shed 3.4%, Sharp Corp. dove 5%, and Honda Motor Co. fell 3.8%.
Shares of Suzuki Motor Corp. finished down 2.6% after news that Volkswagen AG, with which Suzuki has a partnership, had accused it of violating the two firms’ agreement by procuring diesel engines from a third party. News reports shortly after the Tokyo market closed cited Suzuki sources as saying the partnership would be cancelled.
Trade-focused Hong Kong shares dragged lower by European fears, China Cosco Holdings Co. lost 4.6%, also weighed by concerns about high-priced charter contracts.
Likewise, apparel and logistics group Li & Fung Ltd. dropped 4.5%, hit by its heavy exposure to European markets.
Australian mining shares fell with the broader market, as BHP Billiton Ltd. fell 3.9%, Rio Tinto Ltd. surrendered 4.3%, and Alumina Ltd. lost 7.3% of its value.
Going forward, however, one expert said Sydney-listed resource shares may be among the safer plays, as Chinese economic data released last week suggested a soft landing for the world’s number-two economy.
In other markets;
Markets in China, Taiwan and Korea had the day off
Singapore’s Straits Times Index fell back 81.52 points, or 2.9%, to 2,743.58
New Zealand’s NZX 50 Index slid 60.12 points, or 1.8%, to 3,263.81
Australia’s S&P/ASX 200 Index gave back 156.20 points, or 3.7%, to 4,038.50
