Asian stocks fell on Monday as concerns about a Greek default rose amid indications that Europe is losing patience with the country’s efforts to cut its debt pile.
Japanese markets had the day off
In Hong Kong, the Hang Seng Index tumbled 537.36 points, or 2.8%, to end the week’s first session at 18,917.90
The U.S. central bank will hold an extended meeting this week, and investors will be watching for word of fresh measures to stimulate the struggling U.S. economy.
But Europe took center stage Monday, with investors increasingly concerned about the lack of a concerted policy response to the region’s debt issues.
Reports out over the weekend said that the next installment of financial aid to Greece has been delayed until October, and Europe has warned that further payments would be withheld unless Athens could meet its savings targets
Financials were among the worst performers on Monday, with Industrial Bank of Korea down 3.3% in Seoul, and National Australia Bank Ltd. falling 2.6%, and Macquarie Group Ltd. down 3.2% in Sydney.
In Hong Kong trading, HSBC Holdings PLC fell 2.8%, while Industrial & Commercial Bank of China Ltd. lost 4.2%, and Bank of Communications Co. dropped 3.9%.
Swiss bank UBS AG raising the estimate of its losses from unauthorized trades to $2.3 billion U.S. was also likely hurting sector sentiment, according to Lai at DBS Vickers, as "investors may think about other banks."
Meanwhile, Hong Kong-listed apparel firm Esprit Holdings Ltd., which generates most of its sales from Europe, extended steep earning-related losses made last week with another 19.8% plunge on Monday.
China Coal Energy Co. tumbled 16.8% before trade in the shares was halted, with reports saying a mine operated by the firm’s parent in Shanxi province had been suspended after a fatal flooding incident.
Commodity-sector firms are more closely leveraged to expectations for global growth than many other firms and were also putting in a weak performance on Monday, with PetroChina Co. down 3.2% in Hong Kong, while BHP Billiton Ltd. dropped 1.7% and iron-ore producer Fortescue Metals Group Ltd. fell 2.6% in Sydney.
However, Australia’s Newcrest Mining Ltd. managed to advance 0.2%, helped by gains in gold prices, as investors sought the perceived safety of the precious metal.
In other markets;
Shanghai’s CSI 300 Composite Index shed 54.72 points, or 2%, to 2,679.27
Taiwan’s Taiex Index plummeted 96.52 points, or 1.3%, to 7,480.88
Korea’s Kospi Index subtracted 19.16 points, or 1%, to 1,820.94
Singapore’s Straits Times Index stepped back 31.81 points, or 1.1%, to 2,757.23
New Zealand’s NZX 50 Index slid 4.37 points, or 0.1%, to 3,288.31
Australia’s S&P/ASX 200 Index weakened 67.90 points, or 1.6%, to 4,081.50
