Asian markets ended sharply lower Friday, adding to their losses this week, with financial stocks weighed further down by weakness in their U.S. and European counterparts.
In Tokyo trading, the benchmark Nikkei 225 Average ended down 141.27 points, or 1.9%, at 7,416.38, after the Dow Jones Industrial Average overnight closed at its lowest in more than six years.
The country’s Gross Domestic Product was blamed for this weakness by some analysts, but Japanese exporters also declined during the session, as investors took little comfort from the yen's recent weakness. One expert said the yen's depreciation against the U.S. dollar was "too small to help the exporters."
Against the Japanese currency, the dollar changed hands for 93.78 yen compared with 94.39 yen in New York, although it was higher than the 91.97 yen it traded at a week ago.
In Tokyo, shares of Sony Corp. lost 1.6%, while Nintendo Co. shed 3.7%. Mizuho Financial Group fell 4.1%, shares of Bridgestone Corp. fell 7.4% after the tire maker released a cautious 2009 outlook Thursday.
In Hong Kong, the Hang Seng Index lost 2.5%, or 324.19 points, to 12,699.17. HSBC Holdings skidded 2.3%.
A slumping Korean won hurt shares in Seoul with the market briefly touching its lowest level in nearly 11 weeks. The U.S. dollar broke over the 1,500-won mark early Friday, to touch its highest level since Nov. 26.
Regional markets performed even worse during the week, with the South Korean index registering a double-digit percentage decline.
Financial stocks across Asia were weak with Westpac Banking Group down 3.7% in Sydney and Shinhan Financial Group down 5.2% in Seoul.
Cathay Financial Holding dropped 2.3% in Taipei and Australia's Macquarie Group ended down 5.7%, with Macquarie's subsidiaries and the overall market coming under pressure as investors analyzed corporate results released this week.
Qantas Airways slumped 4.3% after Moody's Investor Service cut the company's long term senior unsecured rating to Baa2 from Baa1, citing a deterioration in the airline's credit profile.
New Zealand shares were still being dragged down by concerns about leverage at individual companies and weakness in corporate earnings. Fisher & Paykel Appliances fell 4.8% and PGG Wrightson plunged 28.1%.
Sky Network Television fell 5.7% after saying its first-half net profit fell 16.7% from a year earlier, to NZ$42.6 million ($21.3 million U.S.).
CHINA
On mainland China, electronics and petrochemical companies advanced after the government Thursday authorized further sector-specific stimulus plans, with TCL up 5.7% and Shenzhen Noposion Agrochemicals adding 6.5% in Shenzhen trading. China’s Shanghai Composite Index gained 2% or 45.91 to 2,344.32
Elsewhere:
Singapore’s Straits Times Index slid 34.41 points, or 2.1%, to 1,594.94
Taiwan’s Taiex Index was off 91.93 points or 2.0%, to 4,436.94
South Korea’s Kospi tumbled 41.15 points or 3.7% to 1,065.95
New Zealand’s NZX 50 Index gave back 40.25, or 1.5% to 2,576.68
Australia’s S&P/ASX 200 Index 46.50 points or 1.4% to 3,402.40
