Most Asian markets sank Thursday as fresh worries about Spain and Italy sparked fears of a deteriorating situation in Europe, leading investors to dump risk assets amid rising global uncertainty.
Japan’s Nikkei 225 Index erased 90.46 points, or 1.1%, to 8,542.73
The Hang Seng Index in Hong Kong doffed 60.70 points, or 0.3%, to 18,629.52
The downbeat session was set to round out a bleak month for the region. Hong Kong’s index contracting 11.7% in May, paring year-to-date gains to just 1.1%.
Among other regional benchmarks, Japan’s Nikkei lost 10.3% during the month, followed by a 7.3% drop for the S&P/ASX 200, a 7% loss for the Kospi, 2.7% fall for the Taiex and a 1% decline for the Shanghai Composite.
The day’s losses came after European fears knocked U.S. stocks sharply lower Wednesday. Bond yields in Spain and Italy surged, while fresh polls showing Greek support for anti-austerity parties added to uncertainty surrounding the euro currency bloc.
Investors also remained focused on Spain and Italy.
The surging yen hurt Europe-exposed exporters, particularly in the tech sector. Pioneer Corp. dropped 2.6% and Advantest Corp. gave up 3.7%.
Disappointing industrial production data for April also weighed, with Komatsu Ltd. down 2.6%, and Hitachi Construction Machinery Co. off by 2%.
Other export-tied firms gave ground across Asia. Samsung Electronics Co. dropped 1.2% and LG Electronics Co. lost 1.6% in Seoul. In Hong Kong, merchandise supplier Li & Fung Ltd. slumped 5.9% and Prada SpA lost 3.5%.
Reflecting waning investor appetite, London-based jeweller Graff Diamonds Corp. stalled a planned $1-billion U.S. initial public offering in Hong Kong, blaming adverse market conditions.
Resource firms sold down sharply, after many commodity prices fell overnight amid concerns about global growth.
Tokyo-listed steel maker JFE Holdings Inc. shed 0.9%, while in Sydney, diversified miners BHP Billiton Ltd. and Rio Tinto Ltd. fell 0.6% and 0.9%, respectively.
Fortescue Metals Group Ltd. dropped 4.4% after Chief Executive Officer Nev Power said the iron-ore producer will likely pause its expansion next year in favor of paying down debt.
Energy firms similarly skidded, with Oil Search Ltd. losing 1.2% in Sydney, after benchmark U.S. oil futures fell below $88 a barrel. Elsewhere in the region, Cnooc Ltd. dropped 1.1% in Hong Kong, while Inpex Corp. shed 2.8% in Tokyo.
Electrical utilities ranked among the few rising stocks in Tokyo, after a Kyodo News report that Prime Minister Yoshihiko Noda was considering reactivating some of Japan’s nuclear reactors, none of which are currently in operation.
Kansai Electric Power Co. jumped 3.2%, Tokyo Electric Power Co. rose 2.6%, and Hokkaido Electric Power Co. rallied 3.7%.
CHINA
Shanghai’s CSI 300 Composite Index subtracted 10.22 points, or 0.4%, to 2,632.04
Chinese property firms saw heavy losses, with Agile Property Holdings Ltd. falling 1.1% and China Overseas Land & Investment Ltd. tumbling 4.3% in Hong Kong; on the mainland bourses, Poly Real Estate Group Co. dropped 1.3% in Shanghai, while China Vanke Co. dropped 0.6% in Shenzhen
In other markets;
Korea’s Kospi Index lost 1.39 points to 1,843.47
Singapore's Straits Times Index let go of 11.41 points, or 0.4%, to 2,772.54
Taiwan’s Taiex Index regained 39.70 points, or 0.6%, to 7,301.50
New Zealand’s NXZ Index gained another 6.94 points, or 0.2%, to 3,488.29
Australia’s ASX Index docked 17.97 points, or 0.4%, to 4,076.26
