Most Asian markets retreated Thursday after authorities in South Korea and New Zealand voiced their preference for an accommodative policy stance, citing concerns about economic uncertainties.
The statements, coming after Wall Street stocks gave up most of their gains as the U.S. Federal Reserve said it would maintain low interest rates, added to investor caution.
In Tokyo, the Nikkei 225 index let go of 126.87 points, or 1.3%, to 9,717.44.
In Hong Kong, the Hang Seng Index slid 135.69 points, or 0.6%, to 21,479.08.
In Seoul, the South Korean government said it will stick to an expansionary fiscal policy as external conditions and the sustainability of the global economic recovery "remain very uncertain."
Furthermore, data showed that New Zealand's jobless rate jumped to its highest level since the March 2000 quarter, with central bank governor Alan Bollard saying the pickup in the economy was "slower and more vulnerable" than in Australia.
Sentiment in the Japanese stock market was soured after Wall Street stocks ended off their highs.
Sanyo Electric plunged 20.4% to 172 yen ($1.91 U.S.) after the Nikkei reported that Sumitomo Mitsui Financial Group and Daiwa Securities Group have decided to sell their stake in the company to Panasonic Corp. for 131 yen, a sharp discount to Sanyo's Wednesday closing price of 216 yen.
The selloff came although the acquisition price was set in late December after Sanyo's main shareholders agreed to accept a 4% discount to the stock price at the time. Since then, investors have bid up Sanyo's share price amid growing interest in battery technology and a broader market rally.
Nissan Motor Co. shares gained 0.3% on better-than-expected second-quarter results, which were released after the market closed Wednesday. The company reported a 65% drop in net profit to 25.53 billion yen for the July-September period and raised its forecast for the full year, becoming the latest Japanese car maker to upgrade its outlook.
Banks were mostly higher after Goldman Sachs said bank stocks had likely priced in concerns that they may have to raise funds to shore up their capital. Sumitomo Mitsui Financial Group gained 1.9% and Mitsubishi UFJ Financial Group added 1.3%.
In Seoul, Doosan Heavy Industries & Construction Corp. tumbled 8.6% and Doosan Infracore lost 5.9% after reporting disappointing third-quarter earnings Wednesday.
Australian banks were mostly higher despite falls for their U.S. peers, with Westpac Banking Corp. up 0.4% after Macquarie Equities upgraded the stock to "outperform". ANZ Bank dropped 0.5% as the stock went ex-dividend.
CHINA
Chinese stocks outperformed amid expectations of continued improvement in several economic data due to be released next week.
The Shanghai’s 300 Composite Index gained another 10.43 points, or 0.3%, to 3,464.32, taking gains into a fifth consecutive session.
Elsewhere:
Taiwan’s Taiex index dropped 49.58 points, or 0.7%, to 7,417.46
Singapore’s Straits Times index was down 19.29 points, or 0.7%, to 2,629.35
Korea’s Kospi index fell back 27.69 points, to 1.8%, to 1,552.24
New Zealand’s NZX Index finished 22.20 points, or 0.7%, lower to 3,144.51
Australia’s S&P/ASX 200 fell 32.10 points, or 0.7%, to 4,508.00
