Asian shares fell Tuesday, extending steep losses from the previous session, as Europe’s debt woes weighed on sentiment.
In Tokyo, the Nikkei 225 Index shed 89.36 points, or 1.1%, to 8,456.12
In Hong Kong, the Hang Seng Index collapsed another 571.88 points, or 3.4%, to 16,250.30.
Asian stocks had closed sharply lower Monday, with the fall a precursor for heavy follow-on losses for Europe and the U.S., after Greece said that it would likely not meet its deficit-reduction targets for 2011 or 2012.
Jean-Claude Juncker, prime minister of Luxembourg and president of the Eurogroup of finance ministers, said late Monday that the euro-zone will do everything it can to avoid a Greek default.
The next tranche of financial aid isn’t likely to be available to Greece until Oct. 13 at least, when the Eurogroup will receive a report from auditors from the European Union, the European Central Bank and the International Monetary Fund.
The Korean banking sector is notably vulnerable to funding stresses, they said, as "the reliance of Korean banks on external borrowing is still high compared to their Asian peers."
Tuesday in Seoul, Hana Financial Group Inc. fell 2.9%, while Woori Finance Holdings Co. dropped 5.1%.
Financials also lost ground in Japan, as Nomura Holdings Ltd., fell 2.6%, while Mitsubishi UFJ Financial Group Inc. dropped 3.8%.
Some Hong Kong-listed banks managed midday gains, but those quickly evaporated toward the end of the session, as lenders tracked early losses in European financials.
China Merchants Bank Co. ended down 5.9%, Bank of China Ltd. gave up 3.5%, and Bank of Communications Co. finished 4.4% lower.
Hong Kong-listed exporters, particularly those with sizeable exposure to Europe, also sold down, with Esprit Holdings Ltd. losing 4.8%, Li & Fung Ltd. down 6.9%, and Lenovo Group Ltd. dropping 6.4%.
Japanese auto shares fell broadly, hit by a strong yen and, in some cases, poor U.S. sales results.
Toyota Motor Corp. ended down 2.5%, after posting a 17.5% drop for its September sales in the U.S., while Honda Motor Co., which saw U.S. sales down 8% from the year-earlier period, closed with a loss of 2.8%.
However, Nissan Motor Co. -- which posted its best September U.S. sales in 26 years -- closed with a 1% loss, as gains for the yen against both the dollar and euro outweighed the sales result.
Steel makers were also notably weaker, with JFE Holdings Inc. down 3.3% and Nippon Steel Corp. losing 3.2% in Tokyo. In Hong Kong, shares of Angang Steel Co. lost 6.7%.
Among notable advancers, Australia’s Sundance Resources Ltd. rose 5.8% after the firm received and recommended an improved 1.65-billion-Australian-dollar ($1.57 billion U.S.) takeover offer from China’s Sichuan Hanlong Mining.
In other markets;
Mainland Chinese markets remained closed for a week-long holiday.
Taiwan’s Taiex Index regained 33.90 points, or 0.5%, to 7,047.87
Korea’s Kospi returned from a long weekend to take off 63.46 points, or 3.6%, to 1,706.19
Singapore’s Straits Times Index slumped 90.38 points, or 3.5%, to 2,531.02
New Zealand’s NZX 50 Index moved higher by 4.65 points, or 0.1%, to 3,320.39
Australia’s S&P/ASX 200 Index slipped 24.90 points, or 0.6%, to 3,872.10.
