Asian markets stumbled on Monday after China reported weaker-than-expected economic growth and industrial production, feeding doubts about the pace of recovery and the outlook for the region’s largest economy.
In Japan, the Nikkei 225 index dropped 209.48 points, or 1.6%, to end the week’s first session at 13,275.66
Hong Kong’s Hang Seng Index hurtled earthward 316.38 points, or 1.4%, to 21,772.67
In Hong Kong, Industrial & Commercial Bank of China Ltd. retreated 1.5%, and footwear maker Belle International Holdings Ltd. gave up 2.2%.
Monday’s drop in Japanese equity markets came after the U.S. Treasury on Friday warned Japan not to actively weaken its currency. The yen rebounded sharply after the remarks, with the U.S. dollar dropping below ¥98 on Monday, versus ¥98.92 in the U.S. late on Friday.
In Tokyo trading, Honda Motor Co. gave up 1.8%, Hitachi Ltd. shed 3.2%, and Bridgestone Corp. retreated 2.5% on the local currency’s rise.
On the upside, a report Saturday in the Nikkei business daily that Sharp Corp. would unload its more than 9% stake in Pioneer Corp. helped lift both firms’ shares significantly. Pioneer’s shares climbed 4.3%, and Sharp’s soared 10.5%.
Commodity stocks in the region suffered particularly hard Monday after gold futures, which slumped to hit their lowest level in 21 months in the U.S. on Friday, continued to drop in Asia after the Chinese data accompanied by declines in other commodities.
BHP Billiton Ltd. skidded 3.1%, and Newcrest Mining Ltd. plunged 8.2% in Sydney.
In Tokyo, steel maker JFE Holdings Inc. stumbled 3.8%, while in Seoul, Korea Zinc Co. KR:010130 -14.29% plummeted 14%.
In Hong Kong, oil major Cnooc Ltd. lost 3.1%, and Zhaojin Mining Industry Co. slumped 10%; in Shanghai, Zijin Mining Industry Co. fell 5.6%, and Jiangxi Copper Co. tanked by 4.7%.
CHINA
The sluggish Chinese economic indicators added to the selling pressure in markets already weighed by a strong rebound in the yen, as well as a commodity-price slump and weak cues from Wall Street on Friday.
The Shanghai CSI 300 deducted 25.29 points, or 1%, to 2,436.82
The slowdown followed a 7.9% expansion in the fourth quarter and was weaker than the 8% growth anticipated by economists. Industrial output for March, at 8.9% from the year-ago month, was also weaker than projected.
J.P. Morgan cut China’s economic growth estimate for 2013 to 7.8% from 8.2% after the data release.
A number of Chinese stocks fell sharply on disappointment over the economic data.
Sany Heavy Industry Co. lost 2.4%, Ping An Insurance Group Co. dropped 1.6%, and Great Wall Motor gave up 1.4% in Shanghai trading.
In Shenzhen, Zoomlion Heavy Industry Science and Technology Co. dropped 5.5% — also weighed by a profit warning issued Friday — and Chongqing Changan Automobile Co. shed 4%.
In other markets;
In Korea, the Kospi Index doffed 3.78 points, or 0.2%, to 1,920.43
In Taiwan, the Taiex Index slipped 58.10 points, or 0.7%, to 7,763.53
The Singapore Straits Times Index dropped 9.82 points, or 0.3%, to 3,284.37
In New Zealand, the NZX 50 gained 18.94 points, or 0.4%, to 4,454.71
Australia’s ASX 200 jettisoned 45.63 points, or 0.9%, to 4,967.91
