Asian stocks and most regional currencies slumped Monday, with resource-sector shares and exporters hit particularly hard, on fears that sovereign-debt troubles in the euro-zone will drag on global economic growth.
Tokyo’s Nikkei 225 backslid 226.75 points, or 2.2%, to 10,235.70
In Hong Kong, the Hang Seng index collapsed 430.23 points, or 2.1%, to 19,715.20.
One expert said investors had long been expecting the previous round of interest-rate cuts across the region to translate into a strong earnings rebound this year. But with Europe's problems derailing that story and the euro's weakness helping the U.S. dollar regain its supremacy -- a historic negative for Asian equities, according to this expert -- investors are reassessing their optimism.
Resource shares fronted the day's decline as the U.S. dollar and concerns about global demand weighed down prices of most commodities.
BHP Billiton shrank 4.5% and Rio Tinto slumped 5.7% in Sydney.
Aluminum Corp of China plunged 5.7% in Hong Kong and 5.6% in Shanghai.
In Tokyo, the euro's weakness was taking a toll on exporters' stocks. Sony Corp. fell 4.5% and Elpida Memory skidded 5.6%.
Exporters elsewhere also skidded on demand concerns, with Samsung Electronics Co. falling 3.2% in Seoul and Inotera Memories dropping 6.7% in Taipei, with Foxconn International Holdings slumping 8.3% in Hong Kong
Chipmakers were lower on worries of an oversupply in the market after a Herald Business report Friday cited industry sources as saying Samsung Electronics would report its 2010 investment plan Monday. The report said the company may invest up to 20 trillion Korean won ($17.6 billion U.S.) in its chips and liquid-crystal-display businesses.
Nippon Telegraph & Telephone bucked the trend in Tokyo to rise 3.5% after it reported Friday that it swung to profit for its fiscal fourth quarter ended March 31, led by improvements in its mobile-phone business. The firm also announced a plan to cancel about 16% of its own shares (1.57 billion shares) over the next two years, as part of its efforts to return profits to shareholders.
Banks in Australia were hit by concerns that interest margins could continue narrowing on a continued tightness in wholesale funding due to the euro-zone's problems. Westpac Banking Corp. fell 6.5%, while Commonwealth Bank of Australia shrank 3.1%.
Daewoo Shipbuilding & Marine Engineering dropped 4.2% on a Yonhap report on Sunday that quoted Posco Chief Executive Chung Joon-yang as saying the company was not considering buying Daewoo Shipbuilding.
In foreign-exchange markets, the euro remained under pressure, buying $1.2279 U.S. compared with $1.2372 U.S. in late New York trade Friday, and 113.01 yen against 114.33 yen, while the dollar was at 92.03 yen versus 92.35 yen.
CHINA
Incessant worries that the People's Bank of China may raise interest rates in coming months, and that Beijing may also take more measures to cool property prices, weighed on local shares traded in Shanghai.
Shanghai’s CSI 300 gave back 153.31 points, or 5.4%, to 2,714.72, amid lingering worries that Beijing would tighten its policies to cool property and consumer prices.
In Shanghai, shares of Beijing Vantone Real Estate Co. and Cinda Real Estate Co. lost 9.9%, with Gemdale Corp. slumping 8.4%. Automobile stocks also declined amid worries of a slowdown in domestic demand, with Dongfeng Automobile Co. dropping 8.6% and SAIC Motor Corp. falling 6.9%.
Elsewhere;
Singapore’s Straits Times Index stumbled 21.52 points, or 0.8%, to 2,833.69
Korea’s Kospi index fell back 44.12 points, or 2.6%, to 1,651.51
Taiwan’s Taiex index surrendered 173.41 points, or 2.2%, to 7,598.72
New Zealand’s NZX 50 Index dropped 20.26 points, or 0.6%, to 3,170.74
Australia’s S&P/ASX 200 jettisoned 143.90 points, or 3.1%, to 4,467.20
