Asian markets suffered broad losses Thursday as a downgrade of Spain’s credit ratings and disappointing earnings outlook from some U.S. corporations dragged on investor risk appetite.
The Nikkei 225 Index faded 49.45 points, or 0.6%, to 8,546.78, ending at a level the benchmark hasn’t seen since late July.
In Hong Kong, the Hang Seng Index improved 79.45 points, or 0.4%, to 20,999.05
Chinese banks rallied, pushing the Hong Kong equity markets higher, after a large state-owned shareholder bought shares in the country’s top four lenders and said it would further increase its stake.
South Korean markets ended lower in a volatile session, after the Bank of Korea cut its policy interest rate by a quarter-point to 2.75%, as widely expected. The rate cut was in response to softness in the domestic economy amid a weakened global outlook
The stage was set for losses in Asia after Wall Street closed lower Wednesday following downbeat guidance from aluminum major Alcoa Inc. and energy giant Chevron Corp.
Worries about Europe’s debt situation were heightened by Standard & Poor’s downgrade of Spain’s credit rating by two notches — to just one level above speculative or “junk” grade — with a negative outlook, citing mounting risks to the country’s public finances.
Japanese industrial firms fell Thursday after a weaker-than-expected 3.3% drop in August’s core machinery orders. Robotics firm Fanuc Corp lost 2.7% and Mitsubishi Materials Corp. tumbled 3.9%.
Automobile makers also lost ground, with Toyota Motor Corp dropping 1.4% to extend losses a day after it announced a major worldwide recall.
Weighed by concerns over the impact of Sino-Japanese tension on Chinese sales, Honda Motor Co. fell 0.6% and Nissan Motor Co. retreated 1.2%.
A firm yen further pressured exporters, with the greenback trading at ¥78.11 by late afternoon in Hong Kong Thursday, compared with ¥78.19 in late U.S. trading Wednesday.
Shares of Foxconn Technology Holdings Ltd. surged 16.9% on heavy trading volumes in Hong Kong after Daiwa rated the stock a buy, saying its research indicated that the company was likely to start making the iPhone soon, in a move likely to boost its 2013 revenue by more than 30%.
Lenovo Group Ltd. rose 0.3% in Hong Kong after Gartner ranked the firm as the world’s leading personal-computer maker by unit sales.
Still, the personal-computer market saw its biggest drop in third-quarter sales for more than a decade, according to research firms.
Heavyweight Samsung Electronics Co. fell 1.6% in Seoul, bringing week-to-date losses for the globally-exposed technology giant to 4.8%.
In Taipei, smartphone maker HTC Corp. tumbled 6.9% after the tech major reported its lowest quarterly profit in seven years this week.
Major Chinese banks led the way in Hong Kong, after an investment arm of China’s sovereign-wealth fund bought shares in the nation’s four major lenders in the secondary market Wednesday, and said it will continue such share purchases over the next 12 months.
Industrial & Commercial Bank of China Ltd. jumped 4.3%, Agricultural Bank of China Ltd. gained 2.6%, Bank of China Ltd. added 2.7% and China Construction Bank Corp. climbed 3.1%.
In Australia, rare-earths firm Lynas Corp. plunged 15.1% after a Malaysian court postponed a decision on a temporary operating license for the firm’s refinery in that country.
In other markets
The Shanghai CSI 300 index dipped 21.58 points, or 0.9%, to 2,302.53
The Singapore Straits Times Index slid 1.15 points to 3,032.66
Korea’s Kospi index fell 15.13 points, or 0.8%, to 1,933.09
Taiwan’s Taiex Index collapsed 140.29 points, or 1.9%, to 7,451.72
New Zealand’s NZX index demurred 4.84 points, or 0.1%, to 3,883.30
Australia’s ASX Index fell back 7.21 points, or 0.2%, to 4,483.53
