Asian stocks suffered losses Tuesday, with financials such as Industrial Bank of Korea and Mitsubishi UFJ Financial Group sliding on concerns the global economic crisis is deepening and recovery could take longer than previously expected.
Japan's Nikkei 225 ended the day 104.66 points, or 1.4%, lower at 7,645.51.
Stock and currency traders were uneasy after a report from Moody's Investors Service discussed its concerns about the supportiveness of Western European banks for their Eastern European subsidiaries.
Anticipation of a lower opening on Wall Street also weighed on the market, with Nasdaq futures down 26.25 points in screen trade and Dow Jones Industrial Average futures quoted 123 points lower. Investors were waiting for General Motors and Chrysler to detail their long-term recovery plans later Tuesday.
Among Asian financial stocks, National Australia Bank fell 3.7% and Industrial Bank of Korea lost 5.2%, with Mitsubishi UFJ sliding 4% in Tokyo.
Cathay Financial Holding was down 1.9% in Taipei and Standard Chartered Bank lost 3.5% in Hong Kong.
Bank of East Asia shares were an exception, rising 2.2% in Hong Kong even though the bank reported a 99.1% plunge in 2008 profit due to writedowns on its collateralized debt obligations. The lender said it would give shareholders one bonus share for every 10 they own.
In Australia, the scene of recent deal activity, Australia's OZ Minerals surged 17% on a A$2.6 billion takeover bid from China's Minmetals. PaperlinX shares doubled after confirmation it was selling its Australian Paper unit to Japan's Nippon Paper Group
for A$600 million in cash.
South Korean shares were down as the won fell against the U.S. dollar, deepening concerns about foreign-currency liquidity in the local banking sector, Posco down 7.3%.
Technology stocks were hit in Taiwan, with ProMOS down 3% and heavyweight Taiwan Semiconductor Manufacturing Co off 4.5%.
Shipping stocks fell in Tokyo as the Baltic Dry Index -- a measure of demand for dry bulk commodities -- dropped 3.2% Monday, with Nippon Yusen falling 2.3% and Mitsui O.S.K Lines sliding 6%.
Asian currencies were hard-hit against the U.S. dollar, with suspected intervention by authorities in Korea to support the won. The greenback gained 28 won to 1,455.50.
CHINA
Chinese steel and airline shares fell on profit-taking, with Baoshan Iron & Steel falling 5.3%, Wuhan Iron & Steel losing 6% and China Eastern Airlines skidding 7.1%.
Elsewhere:
China’s Shanghai Composite Index flopped 76.95 points, or 3.1% to 2,385.29
Singapore’s Straits Times Index stumbled 42.78 points, or 2.6%, to 1,637.92
Taiwan’s Taiex Index slumped 99.48 points or 2.2%, to 4,491.78
South Korea’s Kospi fell 48.28 points or 4.1% to 1,127.19
New Zealand’s NZX 50 Index subtracted 7.56, or 0.3% to 2,672.62
Australia’s S&P/ASX 200 Index lost 52.60 points or 1.5% to 3,464.30
