Asia markets ended deep in the red Thursday, as fears global companies could reduce technology spending weighed down stocks such as Advantest Corp., while energy-related shares such as Cnooc and BHP Billiton lost further ground as crude-oil prices extended losses.
The benchmark Nikkei 225 index lost 131.93 points or 1.04% to close at 12,557.66 while the benchmark Hang Seng Index lost 1% to 20,389.48, a closing level it hasn't seen since August 2007.
On the economic front, Japan's Ministry of Finance reported Thursday that foreigners purchased a net 131.0 billion yen worth of Japan stocks for the week ended August 30. Foreigners were net sellers of a revised 215.1 billion yen in stocks in the prior week. Meanwhile, foreigners were also buyers of a net 439.4 billion yen worth of Japan bonds and notes for the latest week.
Tech stocks closed weak, with Sharp declining 1.8%, Advantest plunging 4.0%, Kyocera losing 1.1%, and Fanuc and Matsushita Electrical Industrial slipping 0.2% each.
Oil-related stocks fell on the back of falling crude oil prices. Oil and gas miner Inpex Holdings dropped 1.6%, Nippon Oil fell 1.8% and Nippon Mining Holdings plummeted 3.3%. Trading house Itochu tumbled 3.4%, Mitsubishi Corp slumped 6.5% and Mitsui & Co plunged 5.8%.
In the banking sector, Mizuho Financial Group declined 3.3%, Sumitomo Mitsui Financial Group shed 5.0% and Mitsubishi UFJ Financial Group lost 2.9%. Mitsubishi UFJ denied a report that it is considering entering the bid for a stake in Lehman Brothers. Top brokerage Nomura Holdings gave away 2.0%.
Among exporters, Honda Motor rose 3.1% and Toyota gained 0.4%, while Sony lost 1.0% and heavy machinery maker Komatsu lost 4.01%. Canon closed unchanged.
Shipping stocks fell on lower Baltic dry index. Nippon Yusen gave away 5.0%, Kawasaki Kisen plummeted 5.9 % and Mitsui OSK Lines tumbled 7.3%.
The Chinese market closed marginally higher, ending a three-day losing streak. Nonferrous metal stocks rose on a technical rebound, but Banks continued to decline. Beverage makers surged on news that Coca-Cola is acquiring China Huiyuan Juice at a premium of nearly 200%. The benchmark Shanghai Composite Index closed up 0.74 points or 0.03% at 2,277.41, a 20-month low.
Among non-ferrous metal stocks, Jiangxi Copper advanced 2.8% and Western Mining, the second-largest lead and fourth-largest zinc producer, climbed 1.9%.
Liuzhou Iron & Steel jumped 5.2% and Wuhan Iron & Steel edged up 0.3% after the latter's parent, Wuhan Iron & Steel Group, signed a restructuring agreement with the state assets regulator of southern China's Guangxi province to gain indirect control of Liuzhou Iron & Steel.
Drink makers Xuzhou V V Food & Beverage and Shenzhen Shenbao Industrial both rose by the 10% daily limit.
Shipping companies slumped as the Baltic Dry Index dropped 4.9% on Wednesday following Tuesday's 3.3% fall. China Shipping Development plummeted 4.6% and China COSCO Holdings declined 1.0%.
In the banking space, Bank of Communications lost 1.5% and China Construction Bank shed 0.8%.
The Hong Kong market closed lower, led by China stocks amid worries about their earnings prospects. The benchmark Hang Seng index closed down 195.58 points or 0.95% at 20,389.48.
Index heavyweight China Mobile fell 2.8%, but China Netcom added 2.2% and China Unicom gained 2.0% on news that Spain's Telefonica has agreed to acquire an additional stake of up to 5.74%t in Netcom, which is undergoing a merger with Unicom.
Shipping firms lost further ground as a key index measuring dry bulk freight rates dropped nearly 5% on Wednesday after falling 3.3% on Tuesday. China Huiyuan plunged 7.7%, while Kingway gave away 23.5%.
Mainland infrastructure company China Communications Construction tumbled 13.7% following broker downgrades.
Elsewhere:
Taiwan's Taiex closed down 2.6% at 6,412.
Singapore's STI plunged 3.0% to 2,626.
Indonesia's Jakarta Composite index shed 1.9% to 2,075.
Malaysia's KLCI closed flat at 1,085.
South Korea's Kospi ended flat at 1,426.43.
Australia's S&P/ASX 200 fell 1.6% to 4,979.50.
New Zealand's NZX 50 index dipped 0.8% to 3,348.14.
with files from other wire services
