Japanese shares tumbled Monday on concerns that the strengthened yen could dent exporters' earnings.
The Nikkei 225 index in Tokyo fell 242.27 points, or 2.3%, to end the week’s first session at 10,202.06. Canon Inc. dropped 3.4%, Honda Motor Co. fell 3%, Toshiba Corp. lost 3.9% and Sony Corp. gave up 2.4%.
Most other Asian markets also lost ground. In Hong Kong, the Hang Seng index tumbled 229.22, or 1.1%, to 20,932.20.
Despite the broad-market decline in Tokyo, shares of Japan Airlines soared 8% in heavy volume, after people familiar with the matter said the airline is in talks with American Airlines parent AMR Corp. to form a far-reaching joint venture.
That sets up a potential fight with Delta Air Lines Inc., which is also in preliminary negotiations to form an alliance with and invest in JAL, they said.
Regional energy producers lost ground as crude-oil prices retreated and spot gold reversed some of its gains from Friday. Cnooc lost 2% and PetroChina gave up 1.7% in Hong Kong, Santos shed 3.7% in Sydney and Inpex Corp. fell 0.5% in Tokyo.
Among gold miners, Lihir Gold gave up early gains to end flat and Newcrest Mining slid 0.7% in Sydney, while Zijin Mining Group Co. shrank 1% in Hong Kong.
Shares of Hankook Tire Manufacturing dropped 8.8% in Seoul trading.
In foreign-exchange markets, the U.S. dollar's performance against the yen was in focus. The dollar-yen has been sold recently as traders focused on low interest rates in the U.S.
The dollar was recently at 90.56 yen compared with 90.64 yen in New York on Friday, while the euro was at $1.4552 U.S. against $1.4582 U.S., and at 131.85 yen versus 132.21 yen. The Australian and New Zealand dollars were falling against the U.S. dollar.
CHINA
However, Chinese stocks again went against the general trend in Asia, as Shanghai’s 300 Composite Index gained 55.26 points, or 1.7%, to 3,293.39, after China's securities regulator said it would start reviewing applications from companies seeking to list on the Growth Enterprise Market.
Companies with stakes in firms that could potentially list on the GEM got a boost from the news. TDG Holding soared by the daily limit of 10% in Shanghai, while Shenzhen Airport rose 2.4% in Shenzhen.
But tire makers declined amid concerns over escalating trade tensions between China and the U.S. On Sunday, Beijing singled out U.S. automotive and poultry product imports for investigation after the Obama administration decided to put steep import duties on Chinese tires.
In Shanghai trading, shares of Double Coin Holdings plunged by the 10% limit, while Aeolus Tyre lost 3.3%.
Morgan Stanley analysts Hyunjae Lee and Sangkyoo Park noted the U.S. move would be negative for South Korean tire makers in the near-term as about 30% to 50% of Korea branded tires sold in the U.S. were manufactured in China.
Elsewhere:
Singapore’s Straits Times Index subsided 41.29 points, or 1.5%, to 2,639.74
South Korea’s Kospi index removed 16.79 points, or 1%, to 1,634.91
Taiwan’s Taiex slid 80.19 points, or 1.1%, to 7,256.95
New Zealand’s NZX 50 Index was down 8.51 points, or 0.3%, to 3,128.67
Australia’s S&P/ASX 200 gave back 65 points, or 1.4%, to 4,531.10
