Most Asian equity markets ended lower Thursday on the U.S. Federal Reserve's grim view of the economy, with shares in Japan also hurt by concerns a stronger yen would hurt exporters' competitiveness.
But selling pressure was moderate and some analysts said they are hopeful recent data from several parts of the world point toward an economic recovery.
The Nikkei 225 Stock Average tumbled 80.49 points, or 0.9%, to 9,264.15, while the Hang Seng Index in Hong Kong fell back 276.35 points, or 1.6%, to 17,199.49.
Japanese exporter shares were hurt as the U.S. dollar briefly dropped to its lowest level since March 20 against the yen. The yen also appreciated against other currencies such as the euro and the Australian dollar.
Nikon Corp. and Canon Inc. each dropped 2.4% while Honda Motor Co. gave up 1.5%. A number of Japanese exporters have pegged their dollar/yen assumptions for the current financial year started April 1 around 95 yen. The U.S. dollar was recently around 94.48 yen, having briefly fallen to 94.34 yen.
Regional commodity stocks were mixed, as crude-oil prices took a breather while the price of gold gained.
July Nymex crude-oil futures slipped 58 cents to $61.46 U.S. a barrel on the Globex electronic platform, after rising above $62 a barrel in New York overnight. Energy producers were mostly lower. Cnooc ended down 1.2% in Hong Kong and Woodside Petroleum lost 0.9% in Sydney.
Spot gold recently gained $3.40 to $940.60 U.S. a troy ounce in Asia. Gold miners were higher, with Zhongjin Gold surging 10% in Shanghai and Zijin Mining Group up 5.6% in Hong Kong, while Lihir Gold advanced 4% in Sydney.
Rio Tinto added 2.9% after the Sydney Morning Herald reported that Chinalco was willing to restructure its planned $19.5-billion U.S. deal with the mining company to win over the Australian government as well as shareholder support. A Rio Tinto spokeswoman declined to comment on the report.
Financial stocks across Asia slipped after recent gains, with Westpac Banking Group down 1.3% and Commonwealth Bank of Australia losing 1.7% in Sydney. Mizuho Financial Group fell 0.9% and Mitsubishi UFJ Financial Group lost 1.6% in Tokyo. United Overseas Bank dropped 2.9% in Singapore, with HSBC Holdings off 2.6% in Hong Kong.
Taiwanese shares were choppy after sharp recent gains linked to hopes of greater investment from China. Far EasTone Telecommunications fell 1.2% after Taiwan policy makers reiterated that telecommunications isn't on a list of sectors to be opened to Chinese investment.
China Mobile, which has proposed buying a 12% stake in Far EasTone, saw its shares drop 1.1% in Hong Kong.
Flat-panel makers were higher in Taiwan, however, on strong sales in China and hopes for increased procurements from there. Chi Mei Optoelectronics jumped 6.4%.
New Zealand shares were led lower by Auckland International Airport, which ended down 3.6% after cutting an estimate for revenue, citing declining international passenger numbers and disruption caused by construction work in its departure area.
In currency markets, the euro was at 130.49 yen, from 130.44 yen in New York, and at $1.3804 U.S.
The Singapore dollar gained after data showed the country's economy contracted less than the government's advance estimates in the first quarter of 2009, and officials said the economy had shown some signs of reaching its worst point. The U.S. dollar was recently down at S$1.4564, from S$1.4628 Wednesday.
CHINA
China's Shanghai Composite Index dropped 62.86 points or 2.2% to 2,750.01. "There are hardly any fresh positive leads from the government now as they have [already] launched so many measures [to stimulate the economy]," said Zhang Gang at Central China Securities
Elsewhere:
Singapore’s Straits Times Index was off 58.27 points, or 2.6% to 2,210.97
South Korea’s Kospi index eased off 14.05 points, or 1% to 1,421.65
Taiwan’s Taiex index bucked the trend and improved 15.19 points, or 0.2% to 6,718.81
New Zealand’s NZX 50 Index moved 24.77, or 0.9%, lower, to 2,776.31.
Australia’s S&P/ASX 200 was down 10.70 points, or 0.3% to 3,813.90.
