Asian stock markets took a second straight day of losses Wednesday on worries over Europe’s fiscal health, with low volumes leading to choppy action.
Japan’s Nikkei 225 Index fell another 78.77 points, or 0.9%, to 8,463.16
In Hong Kong, the Hang Seng Index plummeted 387.54 points, or 2%, to 18,960.90
Helping drive shares lower, Europe saw more trouble on the bond market Tuesday, with the Italian 10-year yield moving back above the "danger level" of 7%, and Spanish, Belgian and even French yields also on the rise.
As a result, many Asian financial shares -- especially those of brokers -- retreated Wednesday.
In Japan, Nomura Holdings Inc. fell 4.4%, and Daiwa Securities Group Inc. gave up 4.6%, while in Sydney, Westpac Banking Corp. and QBE Insurance Group Ltd. each lost 2.2%.
In Hong Kong, shares of China Construction Bank Corp. enjoyed an initial rise after reports said Singapore sovereign investment fund Temasek Holdings Pte Ltd. and several Chinese state-affiliated firms had bought up the CCB shares recently sold off by Bank of America Corp.
But those gains evaporated, as the broader banking sector moved south, and CCB closed down 1.1% in Hong Kong. Most others Chinese lenders saw steeper drops: Industrial & Commercial Bank of China Ltd. fell 3.3%, Bank of Communications Co. surrendered 3.7%, and China Merchants Bank Co. moved 3.5% lower.
Among insurers, Ping An Insurance Group Co. lost 5.9%, and China Life Insurance Co. closed 5.1% lower.
Jitters over Europe’s finances weighed on the euro, which traded at ¥103.58 by the end of the Japanese stock session, falling from well above the ¥104 level the previous day.
This, in turn, hurt Japanese exporters. Sony Corp. closed with a 3.3% loss, Nissan Motor Co. dropped 2.4%, Mazda Motor Corp. fell 4.9%, and Bridgestone Corp. gave up 2%.
Among the few major gainers in Tokyo, Olympus Corp. surged 15.6%, extending its recent rebound as concerns the company would be delisted eased. The shares were still down 39% month-to-date.
Meanwhile, global growth concerns and weakness in some commodities hit the resource shares. In Hong Kong, Jiangxi Copper Co. fell 3.3%, and Angang Steel Co. tumbled 7%, while Australia’s Alumina Ltd. dropped 2%, and Fortescue Metals Group Ltd. fell 1.4%.
In other markets;
Shanghai’s CSI 300 index dropped 74.56 points, or 2.7%, to 2,670.12
Taiwan’s Taiex Index subtracted 103.54 points, or 1.4%, to 7,387.52
Korea’s Kospi Index regressed 30.05 points, or 1.6%, to 1,856.07
Singapore’s Straits Times Index dipped 4.14 points, or 0.2%, to 2,807.44
New Zealand’s NZX 50 Index lost 35.91 points, or 1.1%, to 3,281.42
Australia’s S&P/ASX 200 Index demurred 38.20 points, or 0.9%, to 4,247.40
