Asian stocks dropped sharply Wednesday after Japanese banks included Mitsubishi UFJ reported losses from U.S. subprime mortgage defaults, with local concerns sending shares in Indonesia down nearly 9%.
In Tokyo, Nikkei 225 index ended 2.2% lower at 16,475.61, its lowest closing level in 2007 while in Hong Kong, the blue chip Hang Seng Index fell 2.87% to 21,375.72.
Shares of banking giants led the fall, with those of Mitsubishi UFJ ending 5.3% lower, on reports that it incurred roughly five billion yen ($42.5 million) in appraisal losses as of July 31, on its portfolio of 280 billion yen in products linked to U.S. subprime loans.
Shares of Sumitomo Mitsui Financial Group lost 5.9% after its core banking unit put its losses at 200 million yen and those of Mizuho declined 3.7% on reports its unlisted securities unit booked losses of 200 million to 300 million yen in the April to June quarter.
Other financials also fell in the broad sell-off, with shares of Sompo Japan declining 4% and those of Nipponkoa Insurance Co. losing 4%.
ELSEWHERE:
TAIPEI: Taiwan's Weighted index declined 3.9% to 8,568.22.
WELLINGTON: New Zealand's NZX 50 index lost 1.5% at 4,004.46.
SYDNEY: Australia's S&P/ASX 200 ended 3% lower at 5,788.
With files from wire services
