Asian stocks tumbled in a broad-based selloff Wednesday as investors reacted to news that Greece’s political impasse would force new elections in the country by dumping equities, with Hong Kong and South Korean shares taking the biggest hit.
Japan’s Nikkei 225 Index slipped 99.57 points, or 1.1%, to 8,801.17
The Hang Seng Index in Hong Kong collapsed 634.48 points, or 3.2%, to 19,259.83. The drop marked the index’s worst percentage decline since Nov. 10, when it sank 5.2%.
Among the riskier assets are cyclical stocks closely tied to global growth, such as miners, and the Greek news hit Australian-listed miners especially hard Wednesday.
BHP Billiton Ltd. and Rio Tinto Ltd. -- the Australian mining sector’s two largest players -- tumbled 4.1% and 3.9%, respectively. Uranium-focused miner Paladin Energy Ltd. dropped 9.3%.
Commodity players were also trading with sharp losses in Hong Kong, with Aluminum Corp. of China Ltd. down 3.3%, PetroChina Ltd. lower by 3.8%, and China Coal Energy Co. dropping 6.9%.
Banks likewise suffered in Hong Kong, with Bank of Communications Co. down 3.9%, and China Citic Bank Corp. diving 5.4%.
However, the largest Japanese banks initially offered some support in Tokyo after the top three lenders all posted solid profits, managing to sidestep the euro-zone crisis
Mizuho Financial Group Inc. managed to hold on to some of its early gains in the afternoon, rising 1.8%, while Sumitomo Mitsui Financial Group Inc. fell into negative territory but outperformed the market with a 0.3% decline.
Early advances for Mitsubishi UFJ Financial Group Inc. vaporized, with the bank’s shares dropping 1.4%.
Major Japanese exporters dragged on the Tokyo market as the European uncertainty outweighed a weaker yen, with the U.S. currency climbing back above the ¥80 level.
Among the decliners in Tokyo, Renesas Electronics Corp. retreated 3.5%, Toyota Motor Corp. gave up 2.1%, Fujitsu Ltd. fell 2.9%, and Bridgestone Corp. lost 2%.
In Hong Kong, Europe-exposed apparel firm Esprit Holdings Ltd. fell 5.5%, while Chinese computer major Lenovo Group Ltd. dropped 4.5%.
Back in Australia, logistics firm Toll Holdings Ltd. plunged 15.2% after warning on its underlying earnings for the current fiscal year.
In other markets;
Shanghai’s CSI 300 Composite Index settled back 42.73 points, or 1.6%, to 2,574.65
Singapore's Straits Times Index dipped 45.55 points, or 1.6%, to 2,831.15
Korea’s Kospi Index sifted off 58.43 points, or 3.1%, to 1,840.53
Taiwan’s Taiex Index slumped 161.07 points, or 2.2%, to 7,234.57
New Zealand’s NXZ Index shed 20.41 points, or 0.6%, to 3,514.51
Australia’s ASX Index docked 100.75 points, or 2.4%, to 4,165.53
