Asian stocks markets ended lower Tuesday as signs of an inconclusive general election in Italy sparked worries that another chapter in Europe’s debt crisis could be opening.
In Japan, the Nikkei 225 Index plummeted 263.71 points, or 2.3%, to 11,398.81, erasing Monday’s gains which propelled the Tokyo market to its highest level since September 2008,
In Hong Kong, the Hang Seng index swooned 300.39 points, or 1.3%, to 22,519.69
Asia investors took an early lead from the U.S., where stocks ended with heavy losses Monday as the votes were being counted in Italy.
Polls tracking the result indicated that the country could be left with a split result — a situation that could trigger political deadlock, another election, and in a worst case scenario, a renewal of Europe’s debt crisis.
The yen rebounded sharply overnight, particularly against the falling euro, as investors rediscovered the Japanese currency’s safe-haven qualities in the face of European uncertainty.
The U.S. dollar bought ¥92.15 on Tuesday, recovering from ¥91.83 in late North American trading, but still well below the intraday high of ¥94.76 Monday. The euro, which plunged 4% against the yen Monday, also recovered a little.
The yen’s gains slapped exporter shares, as Nikon Corp. fell 3.4%, Honda Motor Co. lost 3.1% and Nissan Motor Co. dropped 2.6%.
Europe-exposed apparel firm Esprit Holdings Ltd. fell 1.4% in Hong Kong, while airline Cathay Pacific Airways Ltd. declined 2.6%.
The resources sector — which is sensitive to perceptions of economic growth — was also losing out in Sydney Tuesday.
Fortescue Metals Group Ltd. fell 3%, and Atlas Iron Ltd. fell 3.4% after swinging to a first-half loss.
Insurance firm QBE Insurance Group Ltd. fell 2.2% after its 2012 profits missed company estimates.
In South Korea, exporters were lower, though not by as much as their rivals in Tokyo. Some Korean firms have suffered this year on concerns that a weaker yen could help the competitive position of Japanese competitors.
CHINA
The Shanghai CSI 300 Composite 300 index faltered 37.37 points, or 1.4%, to 2,567.51
Hong Kong and mainland China saw losses for resource-sector companies, with Aluminum Corp. of China Ltd. down 2.9% in Hong Kong and lower by 3% in Shanghai.
Jiangxi Copper Co fell 2.6% in Hong Kong as well as Shanghai, while Angang Steel Co. dropped 2% in Hong Kong and 2.2% in Shenzhen.
In other markets
Korea’s Kospi Index slid 9.51 points, or 0.5%, to 2,000.01
In Taiwan, the Taiex index jettisoned 66.78 points, or 0.8%, to 7,880.90
The Singapore Straits Times Index dropped 34.50 points, or 1.1%, to 3,254.26
In New Zealand, the NZX 50 index added 12.57 points, or 0.3%, to 4,238.92
In Australia, the S&P/ASX 200 let go of 52.20 points, or 1%, to 5,003.57
