Asian markets skidded Friday as signs of a slowing world economy and a ratings downgrade of several major banks pushed investors away from risk assets before the weekend.
Japan’s Nikkei 225 Index dropped 25.72 points, or 0.3%, to end the week at 8,798.35
The Hang Seng Index in Hong Kong fell another 269.94 points, or 1.4%, on top of Thursday’s heavy losses, to 18,995.13
Resource sector stocks in particular tumbled after crude-oil prices below $80 a barrel and gold futures under $1,600 U.S. an ounce overnight in New York, with banks and other financial stocks also taking big losses.
The performance brought a mixed week to an end for the regional indexes, with Japan’s Nikkei the best performer among the five main benchmarks, with a 2.7% advance. The Hang Seng Index dropped 1.2%, while the Shanghai Composite had ended Thursday’s session with a weekly loss of 2%.
Markets in China were off for a holiday
In addition to concerns over the growth outlook, independent stress tests of Spanish banks revealed capital needs for financial institutions in an adverse scenario could be as high as 62 billion euro ($78.8 billion U.S.). And after the U.S. markets’ close, Moody’s Investor Service downgraded 15 global banks citing volatility and risks in capital markets.
Financials were weaker across Asia. In Hong Kong, HSBC Holdings PLC, one of the banks downgraded by Moody’s, dropped 1.2%.
Among other banks, Agricultural Bank of China Ltd. shed 1.3% in Hong Kong, while Australia & New Zealand Banking Group Ltd. lost 1.4% in Sydney, KB Financial Group Inc. lost fell 3.7% in Seoul and Chinatrust Financial Holding Co. declined 2% in Taipei.
Resource firms were pressured throughout the region.
In the energy sector, Tokyo-listed Inpex Corp. sank 2.5%, Santos Ltd. dropped 2.2% in Sydney and Cnooc Ltd. dropped 4% in Hong Kong.
Shares of Newcrest Mining Ltd. tumbled 3%, while Zhaojin Mining Industry Co. skidded 3.1% in Hong Kong after the drop in gold prices.
Elsewhere in the resources sector, BHP Billiton Ltd. lost 2.1% and Rio Tinto Ltd. declined 1.6% in Sydney, Korea Zinc Co. retreated 3.3% in Seoul and Hong Kong-listed China Coal Energy Co. skidded 3.4%.
Global growth concerns hurt exporters across Asia. Fashion retailer Esprit Holdings Ltd. fell 2.5% in Hong Kong, Samsung Electronics Co. tumbled 3.7% and Hyundai Motor Co. shed 3% in Seoul and Tokyo-listed Suzuki Motor Corp. declined 2.7%.
But a relatively soft yen lent support to some blue-chip names in Tokyo.
Sharp Corp. rallied 2.4% and Fujifilm Holdings Corp. put on 1.7%, as the dollar traded above the ¥80 level, and the euro over ¥100.
Olympus Corp. shares gained 2.2%, after the Nikkei reported the firm is entering final stage talks for a near 50 billion yen ($625 million U.S.) investment from Sony Corp. in an attempt to rebuild the company from last year’s accounting scandal.
Sony stock rallied even more, gaining 5.6%.
A separate Nikkei report said Sony is close to agreeing to a technology alliance for television panels with Panasonic Corp..
Panasonic shares finished 1.5% higher.
In other markets
Korea’s Kospi Index shed 41.76 points, or 2.2%, to 1,847.39
Singapore's Straits Times Index sifted off 2.06 points to 2,828.09
Taiwan’s Taiex Index dumped 57 points, or 0.8%, to 7,222.05
New Zealand’s NZX index slipped 10.19 points, or 0.3%, to 3,399.20
Australia’s ASX Index let go of 39.36 points, or 1%, to 4,048.21
