Asian shares skidded Friday after China’s unexpected interest rate cut ahead of this weekend’s economic data drew attention to its slowing growth trajectory. What’s more, U.S. Federal Reserve Chairman Ben Bernanke didn’t indicate further easing was in the offing.
Japan’s Nikkei 225 Index stumbled 180.46 points, or 2.1%, to 8,459.26
The Hang Seng Index in Hong Kong faded 175.95 points, or 0.9%, to 18,502.34
Despite the day’s steep fall, the Nikkei ended the week 0.2% higher, also snapping a nine-week losing streak.
Losses befell Hong Kong and Shanghai lost 0.5%, after the People’s Bank of China late on Thursday cut benchmark lending and deposit rates by a quarter-point each. The central bank also let interest rates float lower.
Some of Australia’s biggest mining firms, which count China as a major customer, rose after the rate cut, with BHP Billiton Ltd. rising 1%, and Rio Tinto Ltd. gaining 0.3%.
But others declined after a sharp fall in metals futures, with OZ Minerals Ltd. losing 4.6%, and PanAust Ltd. tumbling 2.8%.
Metals shares also dropped in Tokyo, with Pacific Metals Co. shrinking 5.3% and Nippon Light Metal Co. lost 1.9%.
Japanese exporters — which had helped fuel much of this week’s gains in Tokyo as the yen lost value — were likewise among the notable decliners Friday, with sentiment weighed a bit by pre-market data showing a widening trade deficit.
Toshiba Corp. dropped 3.4% and Sharp Corp. plummeted 5.3%.
Sony Corp. surrendered 5.3% after Morgan Stanley downgraded the stock to equal-weight, and as the Nikkei business daily reported that the company may make a major share investment in scandal-hit Olympus Corp.
Panasonic Corp, also named in the report as a possible buyer for a major Olympus stake, fell 1.3%. Olympus shares dropped 3.6%.
Renesas Electronics Corp. rallied 18.8% under such weak market conditions, and in strong trading volume, after a report that the firm will shelve a planned share issue.
CHINA
China is due to release a raft of economic data this weekend, including inflation, industrial production and retail sales for May, as well as monthly trade figures.
Shanghai’s CSI 300 Composite Index dropped 17.86 points, or 0.7%, to 2,524.33
Chinese banks declined on concern the PBOC rate cut might hurt their interest-rate margins. Bank of Communications Co. dived 4.7% and Industrial & Commercial Bank of China Ltd. tumbled 4.9% in Hong Kong; in Shanghai, they gave up 1.3% and 0.7%.
But some Chinese property firms advanced in Hong Kong, with China Overseas Land & Investment Ltd. rising 2.5% and China Resources Land Ltd. gaining 2.1%
In other markets
Korea’s Kospi Index shed 12.31 points, or 0.7%, to 1,835.64
Singapore's Straits Times Index moved lower by 21.37 points, or 0.8%, to 2,737.89
Taiwan’s Taiex Index unloaded 80.66 points, or 1.1%, to 6,999.65
New Zealand’s NZX index subtracted 24.48 points, or 0.7%, to 3,449.47
Australia’s ASX Index slid 44.88 points, or 1.1%, to 4,063.70
