Asian shares tumbled Monday, with financial stocks slammed by worries about the health of the global financial sector and about banks' recapitalization plans.
The benchmark stock indexes in Japan, South Korea, Singapore, Hong Kong and Thailand each lost 3% or more during the session. Aversion to risk also shook up the currency market: Most Asian currencies tumbled as investors continued to seek a safe haven in the U.S. dollar as demand for regional exports has plunged.
Japan's Nikkei 225 Average ended down 288.27 points or 3.8% at 7,280.15, with some experts saying the Nikkei 225 could test last Tuesday's intraday low of 7155.16 in the near term.
Hong Kong's Hang Seng Index surrendered 494.11 points or 3.9% to 12, 317.46.
The losses followed declines on Wall Street Friday, with the Dow Jones Industrial Average dropping nearly 12% for February as a whole, down six months in a row for its longest monthly losing streak since late 2002.
Financial stocks led the charge downhill after The Wall Street Journal reported that American International Group Inc. would receive up to an additional $30 billion U.S. in federal assistance as part of a revamp of its government bailout.
The worries were compounded with HSBC Holdings shares suspended from Monday's trading in Hong Kong ahead of the release of its 2008 results and a corporate announcement.
The banking giant said before the European markets' open that it planned to raise $17.7 billion U.S. via a share-rights issue, priced at a 48% discount to Friday's closing price in London. And it reported that net income for 2008 dropped 70% to $5.73 billion from $19.13 billion.
Shares of HSBC's subsidiary Hang Seng Bank subsidiary lost 3.2% after the Hong Kong-based lender announced a 23% decline in 2008 earnings.
In Tokyo, shares of Mitsubishi UFJ Financial Group tumbled 6.8% and Sumitomo Mitsui Financial Group lost 5.7%.
Tokyo-traded shares of Citigroup plunged 36%.
Financial stocks weakened in Sydney after ratings company Moody's downgraded its outlook for their financial-strength ratings to negative from stable. Shares of Commonwealth Bank of Australia were down 4.3% and Westpac Banking lost 3.5%.
Elsewhere, Macquarie Group stock sank 7.2% in Sydney, Shinhan Financial Group gave up 5.6% in Seoul and Cathay Financial Holding Co. skidded by its daily limit of 7% in Taipei.
Exporters also declined Monday, with Japanese car makers among them. Honda Motor Co. was down 3.1% and Nissan Motor Co. fell 3.6%.
South Korean markets were broadly lower, with Samsung Securities down 4.8% and Hyundai Mipo Dockyard shedding 6.7%.
In New Zealand, Telecom fell 2.5% as the stock went ex-dividend, though PGG Wrightson gained 8.8% after news last week it had reached agreement with its banking syndicate to refinance its debt.
In currency markets the euro was weaker at $1.2576, compared with $1.2676 late in New York on Friday, and at 122.57 yen, against 123.83 yen. The U.S. dollar was quoted at 97.47 yen compared with 97.67 yen.
Against most other Asian currencies, the dollar advanced on safe-haven buying. It was recently fetching 1,573 South Korean won, versus 1,533 won.
There was also selling in the Australian and New Zealand dollars, with the Kiwi currency falling to $0.4908 earlier in the day and the Australian dollar briefly dropping to $0.6298. That followed reports that Australian company profits in the fourth quarter contracted 6.5% from the previous quarter, compared with an expected fall of 2.0%.
Elsewhere:
China’s Shanghai Composite Index actually gained ground, 24.18 points, or 1.1%, to 2,164.67
Singapore’s Straits Times Index tumbled 61.47, or 3.9%, to 1,533.40
Taiwan’s Taiex gave back 131.32 points or 2.9% to 4,425.83
South Korea’s Kospi capsized 44.22 points or 4.2% to 1,018.81
New Zealand’s NZX 50 Index fell 40.80 or 1.6% to 2,481.52
Australia’s S&P/ASX 200 Index stumbled 94.40 points or 2.8% to 3,250.16
