Most Asian stocks tumbled Monday, with reports of North Korean leader Kim Jong-il’s death helping to accelerate losses in many markets that were already weighed by concerns about the European debt crisis.
Japan’s Nikkei 225 Index moved downward 105.60 points, or 1.3%, to end Monday at 8,296.12
In Hong Kong, the Hang Seng Index stumbled 215.18 points, or 1.2%, to 18,070.20
Reports citing North Korean state television said midday Monday that the communist nation’s leader Kim Jong-il died on Saturday.
Following the announcement, the South Korean military went on high alert, while Japanese Prime Minister Yoshihiko Noda set up a crisis management team on North Korea to handle the implications, according to reports.
The news also had an impact on currency markets, where the U.S. dollar appreciated on its safe-haven appeal, while the South Korean won tumbled.
The performance in Asia followed a mixed finish for U.S. stocks on Friday, after ratings agency Moody’s lowered Belgium’s credit rating, and rival Fitch put six euro-zone nations on watch for a possible downgrade.
Japanese broker shares were weak, with Nomura Holdings Inc. dropping 4.3%, and Daiwa Securities Group Inc. off by 3.2%. Shares of HSBC Holdings PLC fell 2% in Hong Kong.
Other companies with global exposure also dropped in Hong Kong, with Li & Fung Ltd. losing 3.1%, while Esprit Holdings Ltd. sank 6.5%.
Export-focused technology shares also traded down in Tokyo, with Elpida Memory Inc. losing 5.2% and Panasonic Corp. dropping 5%.
Among gainers, car maker Nissan Motor Co. advanced 2.1% on news it plans a buy back of up to 0.3% of its shares and also that it intends to turn subsidiary Aichi Machine Industry Co. into a fully-owned unit. Shares of Aichi Machine rocketed 29.7%.
In Seoul, Samsung Electronics Co. lost 3.6% after the firm filed new iPhone patent infringement claims against Apple Inc.
Resource stocks also traded lower across Asia, as commodity prices fell on a stronger dollar. BHP Billiton Ltd. dropped 2.5% and Rio Tinto Ltd. shed 2.6% in Sydney.
Hong Kong-listed shares of China Coal Energy Co. dropped 2.4% and those of Jiangxi Copper Co. lost 2.1%.
China Petroleum & Chemical Corp., also known as Sinopec, saw its shares fall 0.3% in Hong Kong and 1.5% in Shanghai, after a report said the firm may buy a 2.7-billion-euro ($3.5-billion U.S.) stake in Spanish peer Repsol YPF
Property firms were also hard-hit in Hong Kong after government data released over the weekend showed China home prices fell in November.
Agile Property Holdings Ltd. dropped 3.2% and China Resources Land Ltd. lost 4%.
Retailers were among the worst performers in Sydney as a profit warning by Billabong International Ltd. hit the sector.
Shares in Billabong plummeted 44.2% after the Europe-exposed surf- and ski-wear company said it expects first-half profit to fall due to a slowdown in Christmas sales.
Myer Holdings Ltd. sank 6.2%, Harvey Norman Ltd. shed 8.7%, and JB Hi-Fi Ltd. declined 7.2%.
In other markets;
Shanghai’s CSI 300 index subtracted 5.72 points, or 0.2%, to 2,384.41
Taiwan’s Taiex Index slid 151.76 points, or 2.2%, to 6,633.33
Korea’s Kospi Index retreated 63.03 points, or 3.4%, to 1,776.93
Singapore’s Straits Times Index weakened 41.13 points, or 1.6%, to 2,618.09
New Zealand’s NZX 50 Index dropped 22.31 points, or 0.7%, to 3,223.03
Australia’s S&P/ASX 200 Index fell 98.80 points, or 2.4%, to 4,060.40
