Asian markets ended solidly lower on Monday after China’s inflation accelerated in March and a weak American employment report dragged on U.S. equity futures, with Japanese stocks also hit as a strengthened yen pressured exporters.
In Japan, the Nikkei 225 Index collapsed another 142.19 points, or 21.5%, to 9,546.26, ending lower for a fifth straight trading day
Regional stocks began the week’s trading on a weak note, after data released on Friday showed the U.S. economy created just 120,000 jobs in March, well below market expectations. Although U.S. markets were closed on Friday, index futures dropped sharply after the data.
The data "is a reminder for the market that the strong pace of recovery in the U.S. labour market cannot be taken for granted," Barclays strategists wrote in a report. The data "certainly reopen the door for the market to consider further accommodation down the road from the [U.S. Federal Reserve]."
Stock losses were spread across several sectors in Tokyo, Seoul and Taipei on Monday following the U.S. data, with Japanese exporters also pressured by the yen’s strength. Data released earlier Monday showed Japan returned to a current account surplus in February, after posting a deficit in January.
Toyota Motor Corp. lost 2.4% and Canon Inc. dropped 1.7% in Tokyo, with Samsung Electronics Co. falling 1.1% and LG Electronics Inc. sliding 3.9% in Seoul. In Taipei, Hon Hai Precision Industry Co. fell 1.4% and HTC Corp. slumped 6.8%.
Sony Corp staged a sharp rebound in Tokyo, erasing early losses to finish 0.6% higher after the Nikkei newspaper reported the company planned to cut 10,000 jobs, about 6% of its total workforce worldwide.
The region’s energy producers declined as Nymex crude-oil prices dropped sharply. Inpex Corp. shed 2.8% and Japan Petroleum Exploration Co. lost 2.7% in Tokyo
CHINA
Meanwhile, Chinese inflation data also disappointed, with March consumer price index rising 3.6%, compared to February’s print of 3.2%, and beating expectations for a 3.3% increase.
Shanghai’s CSI 300 Composite Index fell 24.68 points, or 1%, to 2,495.15
One analyst said that while the March CPI data was above market expectations, it was weaker than the average 3.9% rate for the first two months of the year.
Property developers, automobile stocks and banks declined on mainland bourses, with Gemdale Corp. dropping 1.6% and Poly Real in Shanghai and China Vanke Co. falling 1.9% in Shenzhen.
Also ranking among the notable losers in Shanghai, SAIC Motor Corp. fell 2.3%, while
Construction Bank Corp. and China Citic Bank Corp. dropped 1.3% and 2.3%, respectively.
Heavyweight PetroChina Co. gave up 0.9% in Shanghai
In other markets;
Korea’s Kospi Index lost 30.67 points, or 1.5%, to 2,018.61
Singapore’s Straits Times Index shed 29.94 points, or 1%, to 2,985.04
Markets in Hong Kong, Australia and New Zealand were closed
