Asian markets slumped Monday as a weak U.S. jobs report added to a growing list of investor worries about a fragile global economy, sending Japanese stocks to their lowest in more than two decades, while Hong Kong shares erased year-to-date gains.
Japan’s Nikkei 225 Index fell 144.62 points, or 1.7%, to end Monday at 8,295.63
The Hang Seng Index in Hong Kong collapsed 372.75 points, or 2%, to 18,185.59
At its finish on Monday, the Nikkei is down 19.1% from the 52-week high of 10,255.15 that it touched on May 27.
The losses in Asia came on the heels of a terrible day for U.S. stocks Friday, when all key benchmarks fell more than 2%, while the Dow Jones Industrial Average gave up all of its gains registered earlier in the year.
The U.S. economy added just 69,000 jobs in May, the smallest net increase in non-farm payrolls in a year, the government reported. Economists had expected a 165,000 increase.
SK Hynix Inc.tumbled 5.3%, and LG Display Co. sank 5.2% in Seoul, Esprit Holdings Ltd lost 3.1% in Hong Kong, and in Taipei, HTC Corp. fell 6.5% while Inotera Memories Inc. slumped by the day’s 7% limit.
Several regional financials were slammed. Nomura Holdings Inc. dropped 4% in Tokyo, Bank of Queensland Ltd. shed 4.1% in Sydney, Samsung Securities Co. lost 3.8% in Seoul and Chinatrust Financial Holding Co. sank 4.3% in Taipei.
In Hong Kong, bourse operator Hong Kong Exchanges & Clearing Ltd. shed 4.8% and Manulife Financial Corp. fell 5.2%.
Ping An Insurance Group Co. and China Life Insurance Co. plunged 5.5% and 4.9% in Hong Kong, respectively, in addition to 3.2% and 3.6% in Shanghai.
Few resource sector stocks were spared from losses during the session. Energy firms were hard-hit across after Nymex crude-oil futures continued to slide in Asia after tumbling in New York on Friday for weekly losses in excess of 8%.
Inpex Corp. fell 3.5% in Tokyo, Woodside Petroleum Ltd. dropped 3.4% in Sydney, Cnooc Ltd. shed 2.6% in Hong Kong and PetroChina Co. dropped 1.7% in Shanghai.
In the wider resources sector, Aluminum Corp. of China Ltd. skidded 2.8% in Hong Kong, while Fortescue Metals Group Ltd. and Rio Tinto Ltd. surrendered 4.8% and 4.7%, respectively, in Sydney.
However, gold stocks benefited from the metal’s biggest one-day rally since August in regular New York trading on Friday after the weak U.S. data raised hope for more quantitative easing from the Federal Reserve.
Newcrest Mining Ltd. added 1.7% and Perseus Mining Ltd. jumped 7.7% in Sydney, while Zijin Mining Group Co. rose 2.4% in Hong Kong and 0.2% in Shanghai.
Also ranking among the day’s few gainers, Renesas Electronics Corp. surged 13.3% in Tokyo, paring quarter-to-date losses to 55.7%.
The gains came after the Nikkei business daily reported over the weekend that the firm and some of its shareholders were discussing a possible restructuring plan that may include debt guarantees and the issuance of subordinated bonds.
In other markets
Shanghai’s CSI 300 Composite Index dropped 73.97 points, or 2.8%, to 2,559.03
Korea’s Kospi Index docked 51.38 points, or 2.8%, to 1,783.13
Singapore's Straits Times Index fell 46.81 points, or 1.7%, to 2,698.90
Taiwan’s Taiex Index gave back 211.43 points, or 3%, to 6,894.66
Australia’s ASX Index deducted 78.86 points, or 1.9%, to 3,985.03
Markets in New Zealand had the day off
