Most Asian markets fell on Friday on concerns about earnings growth, with South Korean stocks tumbling on heavy losses in the construction and shipbuilding sectors, while Japanese shares pulled back from a string of multi-year highs.
In Japan, the Nikkei 225 index faded 64.02 points, or 0.5%, to end the week at 13,485.14. The benchmark was still the region’s best performer for the week, rising more than 5%.
Hong Kong’s Hang Seng Index subtracted 12.22 points, or 0.1%, to 22,089.05
Foreigners were net buyers of the Kospi constituents on Friday, but heavy selling from domestic institutions dragged down the market, he said.
Shares of GS Engineering & Construction Corp. plunged 15%, Daewoo Shipbuilding & Marine Engineering Co. sank 7.7% and STX Offshore & Shipbuilding Co. plunged 12.9% in Seoul during the session.
The retreat in Tokyo came after newly installed Bank of Japan Governor Haruhiko Kuroda said that the central bank’s inflation target is "flexible" and it will keep an eye out for asset bubbles as it conducts its new easing moves.
While the market was up nearly 30% in the year to date amid expectations for government’s efforts to drag the economy out of an extended period of stalled growth, some economists highlighted the need for more efforts to supplement the Bank of Japan’s monetary easing.
Also in Tokyo, Fast Retailing— among the top-weighted Nikkei Average components — dropped 0.9% after its first-half profit missed estimates.
Among financials, Sumitomo Mitsui Financial Group Inc. dropped 0.6%, and Mizuho UFJ Financial Group Inc. fell 0.5%.
Shares of Takata Corp. dropped 1.8% on top of Thursday’s 9% tumble, after the country’s three largest auto makers announced a recall over defective airbags made by the company.
In Sydney, Woodside Petroleum Ltd. jumped 3.2% after announcing it was shelving its Australian Browse gas-export product, expected to cost more than $40 billion U.S. Woodside said the company, along with its joint-venture partners, will review other options.
In other markets;
The Shanghai CSI 300 deducted 15.76 points, or 0.6%, to 2,462.11
In Korea, the Kospi Index docked 25.57 points, or 1.3%, to 1,924.23
In Taiwan, the Taiex Index doffed 36.35 points, or 0.5%, to 7,821.63
The Singapore Straits Times Index dropped 14.61 points, or 0.4%, to 3,294.19
In New Zealand, the NZX 50 added 26.23 points, or 0.6%, to 4,435.77
Australia’s ASX 200 gained 6.47 points, or 0.1%, to 5,013.54
