Japanese shares gave up early gains to end lower Monday, with the benchmark Nikkei 225 Average marking its lowest closing level in 26 years as investors sold down financials and pharmaceutical shares amid a weak economic outlook.
Japan's Nikkei 225 Average slid 87.07 points, or 1.2%, to 7,086.03, the lowest finish since October 1982. At its latest close, the Nikkei is at less than a fifth of its all-time high of 38,915.87, which it touched nearly two decades ago.
The decline came after data released earlier in the day showed that Japan's current-account balance swung to a deficit for the first time in 13 years.
According to data released by the Ministry of Finance Monday, Japan's current-account balance swung to a deficit of 172.8 billion yen ($1.76 billion U.S.) in January as the decline in exports accelerated in the face of a global economic downturn.
The figure was weaker than economists' estimate of a 15-billion-yen deficit and comes on the back of a 125-billion-yen surplus in the previous month. .
In Hong Kong, the benchmark Hang Seng Index tumbled severely, 576.94 points, or 4.8%, to 11,344.58
Among the bigger losers in Tokyo, shares of Shinsei Bank tumbled 8.8% after it announced plans to raise capital this month.
Takeda Pharmaceutical Co. saw its stock end 13.1% lower on concerns the approval for a diabetes drug the company is developing could be delayed in the U.S.
And shares of Komatsu Ltd. lost 4.5% on news that the heavy-equipment manufacturer has accelerated its plant closures in North America.
Despite the overall losses in the Japanese market, shares of some energy stocks managed to post gains for the trading session as oil prices held their ground firmly above $46 U.S. a barrel.
Shares of Inpex Corp. closed up 4.5% and Nippon Oil Corp.shares rose 2.5% in Tokyo.
Strength in the energy stocks tracked the climb in crude-oil prices. April crude climbed as high as $46.76 per barrel in electronic trading on Globex. They were recently up eight cents at $45.60 U.S. a barrel.
CHINA
China's consumer price index is likely to fall 1% in the first quarter of 2009 from the same period a year ago, reflecting emerging deflation risks in one of the world's fastest growing economies, according to a Dow Jones Newswires report.
The report cited a report published in the China Securities Journal Monday by the State Information Center, a government thinktank.
Data released last month showed China's consumer price index eased for the ninth straight month, with January CPI up a modest 1% from the year-earlier period.
Elsewhere:
China’s Shanghai Composite Index gave back 84.05 points or 3.7% to 2,202.53
Singapore’s Straits Times Index was off 56.17, or 3.7%, to 1,456.95
Taiwan’s Taiex lost 25.39 points, or 0.6% to 4,628.24
South Korea’s Kospi added 16.30 points or 1.6% to 1,091.73
New Zealand’s NZX 50 Index slumped 1.87 or 0.1% to 2,469.17
Australia’s S&P/ASX 200 Index was up, though only by nine points or 0.3%, to 3,154.56
