Most Asian markets were hammered Monday as investors concerned about a gloomy global economic outlook sold off export-related stocks and financials.
Hong Kong shares were hit especially hard, even as mainland-Chinese and Taiwanese shares survived selling pressure to end higher as trading resumed for the first time since the Chinese New Year holidays.
Japan's Nikkei 225 Stock Average tumbled 120.07 points or 1.5% lower to 7,873.98 . Shares of some of Japan's biggest industrial companies fell to multiyear lows, with skittish investors dumping them on concerns more bad news could lie ahead as firms forecast steep losses and unveil sweeping layoffs.
Shares of Hitachi, for instance, plunged 17% after the company last week forecast a $7.8 billion loss for the year ending March 31 - it would mark a record loss for a Japanese company - and said it plans to slash 7,000 jobs.
In Japan, NEC Corp. fell after it reversed on Friday a forecast that it would turn a profit and projected a $3.2 billion full-year loss. Its shares, which fell to their lowest level in 30 years during the session, ended 5.7% lower.
Hong Kong's Hang Seng index collapsed 3.1 % or 416.72 points, to end the week’s first session at 12,861.49, dragged down by financials after Citigroup and DBS Vickers downgraded earnings of the major Chinese banks. Bank of Communications stock lost 4.4% and Bank of China lost 3.9%. Market heavyweight HSBC Holdings also slid 3.8% on persistent worries about its funding.
Australia's S&P/ASX 200 Index shrank 43.3 points, or 1.2%, to 3,497.40 after the government said the budget was headed for a deficit, even though shares of Rio Tinto jumped 5.5%. The stock rallied after the mining giant said it has held talks with Chinalco over an investment, helping ease investor concern that it could be forced to carry out a large rights issue to pay down debt.
South Korean shipbuilders ended higher on expectations of solid fourth-quarter results, and were also helped by another gain for the Baltic Dry Index. Daewoo Shipbuilding & Marine Engineering Co. rose 3.6% and STX Shipbuilding Co. gained 0.7%.
CHINA
Shanghai-listed shares were also helped by gains in agricultural firms, after the Chinese government announced measures to prevent grain production from falling, via tax cuts on agribusiness-related loans.
Elsewhere:
China’s Shanghai Composite Index returned from a week off to gain 24.38 points, or 1.2 %, to 2,057.06
Korea’s Kospi Index was off 15.16 points or 1.3% to 1,146.95
Taiwan’s Taiex index picked up 12.01 points, or 0.3%, to 4,259.98
Singapore’s Straits Times Index lost 41.18 points, or 2.4%, to 1,705.29
New Zealand shares were off 2.65 points, or 0.1%, to 2,771.50
