Asia shares tumbled Tuesday with declining commodity prices and fresh signs of weakness in the U.S. economy hitting stocks ahead of key events later in the week.
In Japan, the Nikkei 225 Index deducted 95.69 points, or 1.1%, to 8,679.82
The Hang Seng Index in Hong Kong plummeted 284.84 points, or 1.5%, to 19,145.07, its lowest closing level since July 26.
Data out earlier this week showed that South Korea is poised for a drop in annual exports, marking only the fourth time annual exports have contracted.
European Central Bank President Mario Draghi is expected to unveil measures to support sluggish growth in debt-stricken Europe.
Heavy losses for stocks in South Korea’s key shipbuilding sector weighed in Seoul. Hyundai Mipo Dockyard Co. sank 4.3% and Daewoo Shipbuilding & Marine Engineering Co. gave up 3.6%.
Exporters also suffered, as Hyundai Motor Co. dropped 3.8%, and affiliate Kia Motors Corp. gave up 2.6% as it faced a limited labor-strike action.
In Hong Kong, Lenovo Group Ltd. gave up 7.6% on concerns over increased share supply following news that Japan’s NEC Corp. was selling its entire 2.7% stake in the Chinese personal computer maker at a discount to Tuesday’s closing price. NEC shares dropped 2.6% in Tokyo.
Banking shares were also down, led lower by China Minsheng Bank Ltd, which fell 3.7%, while Industrial & Commercial Bank of China Ltd. fell 2.2%.
Resource shares also buckled across Asia amid declining commodity prices and growing concern about the strength of the global economy.
Tokyo-listed energy major JX Holdings Inc. slumped 4%, and Japan Petroleum Exploration Co. lost 3.1%, following an overnight drop in U.S. crude-oil futures.
Steelmakers were likewise weak, with JFE Holdings Inc. down 3.1% in Tokyo, and Angang Steel Co. slumping 4.1% in Hong Kong.
Iron-ore prices slumped to a near three-year low, sending Sydney-listed shares of Fortescue Metals Group Ltd. down 8.5%, with several broker target-price downgrades also weighing on the stock.
News that the firm had sold its Solomon power station to Canada’s TransAlta Corp. for 310 million Australian dollars ($316.6 million U.S.) did little to arrest the slide.
BHP Billiton Ltd. dropped 1.9% after the diversified miner said it will boost investment in its petroleum business by $6.5 billion U.S.
The falls came as data showed Australia’s economic growth missed expectations in the second quarter.
Weakness for the euro hit some blue-chip exporters in Tokyo. Sony Corp. dropped 3%, while Panasonic Corp. lost 2.4%, and Renesas Electronics Corp. surrendered 3.8%.
Sharp Corp., however, continued its recent march higher with a gain of 0.5%, though well off a rise of more than 3% earlier in the session.
Some auto makers that saw initial gains on the back of U.S. sales figures moved lower later in the day. Toyota Motor Corp. slipped 1% after trading in positive ground earlier thanks to a 46% rise in U.S. sales for August.
Similarly, Honda Motor Co. shares also shed 0.9%, while Nissan Motor Co. dropped 1.9%.
In other markets
Shanghai’s CSI 300 index subtracted 4.53 points, or 0.2%, to 2,199.88
Korea’s Kospi index slumped 33.10 points, or 1.7%, to 1,874.30
The Singapore Straits Times Index fell 15.65 points, or 0.5%, to 2,995.90
Taiwan’s Taiex Index erased 83.91 points, or 1.1%, to 7,367.44
New Zealand’s NZX index slipped 6.38 points, or 0.2%, to 3,669.65
Australia’s ASX Index docked 24.75 points, or 0.6%, to 4,278.77
