Asian stock markets dropped sharply Thursday as rising Italian borrowing costs washed fresh waves of anxiety about the euro-zone debt crisis over the region.
Japan’s Nikkei 225 Index tumbled 254.64 points, or 2.9%, to 8,500.80
In Hong Kong, the Hang Seng Index plummeted without a parachute, losing 1,050.54 points, or 5.3%, to 18,963.90
Bond yields on the Italian 10-year note rose over 7%, about the same level that triggered bailouts for debt-stricken Ireland and Portugal.
It marked a reversal of Wednesday’s market optimism over Italy’s outlook, driven by the imminent resignation of Italian Prime Minister Silvio Berlusconi.
Financial firms and exporters were among the hardest hit in Asian trade.
In Hong Kong, Agricultural Bank of China Ltd. gave up 6.8%, while Industrial & Commercial Bank of China Ltd. fell 8.7% after Goldman Sachs Group Inc. sold more than $1 billion worth of its ICBC shares.
Stock in HSBC Holdings PLC surrendered 9.1% of its value, additionally weighed by the bank’s 36% drop in quarterly profit excluding special items, as well as a sharp rise in non-performing loans.
Tokyo-listed Daiwa Securities Group Inc. finished down 3.5%, Sumitomo Mitsui Financial Group Inc. fell 4.7%, and Nomura Holdings Inc. lost 3.1% after Moody’s Investors Service warned of a possible credit-rating downgrade due to weakness in its international capital-markets activities.
Among major export-focused firms, Toshiba Corp. lost 6.7% in Japan, while Sony Corp. was off by 4.7%.
In Hong Kong, Esprit Holdings Ltd. fell 7.8%, and Li & Fung Ltd. lost 5.7%.
Weakness in commodities hit resource stocks in Sydney trading, with Rio Tinto Ltd. shedding 2.6%, and iron-ore producer Fortescue Metals Group Ltd. dropping 8%.
Many Hong Kong-listed resource shares suffered even deeper falls, as Angang Steel Co. lost 8.8%, and Jiangxi Copper Co. dropped 7.3%.
Property stocks were also among the notable decliners in Hong Kong, with Hang Lung Properties Ltd. losing 7.1%, and Agile Property Holdings Ltd. off by 8.8%.
CHINA
Not helping sentiment toward the exporters, China released October trade data showing exports to much of the world slowing, with the month’s trade surplus printing well below economists’ average forecast.
Shanghai’s CSI 300 index fell 52.07 points, or 1.9%, to 2,699.59
In other markets;
Taiwan’s Taiex Index slid 253.18 points, or 3.4%, to 7,308.68
Korea’s Kospi Index collapsed 94.28 points, or 4.9%, to 1,813.25
Singapore’s Straits Times Index dipped 71.76 points, or 2.5%, to 2,786.90
New Zealand’s NZX 50 Index subtracted 34.69 points, or 1%, to 3,318.87
Australia’s S&P/ASX 200 Index settled 102 points, or 2.4%, to 4,244.10
