Asian stocks fell Friday, on renewed concern losses at financial institutions will mount as the global recession deepens.
Japan's Nikkei 225 Average stumbled 260.39 points, or 3.5%, to end the week at 7,173.10
In Hong Kong, the benchmark Hang Seng Index experienced another down day, 289.72 points this time, or 2.4% to 12,211.24
BHP Billiton Ltd. dropped 2.9% in Sydney after oil and metals prices retreated.
Honda Motor Co., which gets more than half its sales from North America, lost 4.9% after the Japanese currency rose against the dollar.
Elpida Memory Inc., Japan’s biggest memory-chip maker, slumped 11% on concern a possible rescue plan for the company may be delayed. Bukwang Pharmaceutical Co. surged 7.8% in Seoul after receiving approval to sell a hepatitis drug.
HSBC Holdings plc sank 2.9%. The company’s share-price target was cut by almost one third at CLSA amid concerns some borrowers will fail to repay their loans, a report dated yesterday said.
The London-based lender announced plans on March 2 to raise 12.5 billion pounds ($17.7 billion U.S.) in the U.K.’s biggest rights offering. HSBC said it will eliminate 6,100 jobs and close U.S. consumer lending units after subprime losses cut profit.
Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank, dropped 4.8%. Mizuho Financial Group Inc., Japan’s second-largest bank, slipped 4.9%
Bank of Japan Deputy Governor Hirohide Yamaguchi said the central bank may need to expand its purchases of corporate debt to prevent a credit shortage as the recession deepens.
BHP slipped 2.3% in Sydney after a measure of six primary metals traded in London declined 1.6% for the first slump in three days. The company had its earnings estimates cut by Merrill Lynch & Co. because of declining metal prices.
Inpex Corp., Japan’s largest oil explorer, lost 3.7% in Tokyo after oil fell 3.9% to settle at $43.61 U.S. a barrel in New York yesterday. Cnooc Ltd., China’s largest offshore oil producer, slumped 3.2%.
Elsewhere:
China’s Shanghai Composite Index gave back 18.34 points or 0.8% to 2,286.55
Singapore’s Straits Times Index was off 5.52, or 0.4%, to 1,513.12
Taiwan’s Taiex defied the trend and actually gained 16.43 points, or 0.4% to 4,653.63
South Korea’s Kospi dropped 3.15 points or 0.3% to 1,055.03
New Zealand’s NZX 50 Index slumped 20.36 or 0.8% to 2,471.04
Australia’s S&P/ASX 200 Index was lower by 43 points or 1.4% to 3,145.50
