Asian stocks fell Wednesday, tracking sharp Wall Street declines overnight, amid mounting fears of a double-dip recession in the global economy. Exporters in Japan were hit hard by the yen's recent strength against the euro.
Japan’s Nikkei 225 average fell 188.03 points, or 2%, to 9,382.64
Hong Kong’s Hang Seng index gave back 119.91 points, or 0.6%, to 20,128.99
But losses in markets were somewhat limited as regional bourses had already dropped heavily on Tuesday -- partly in reaction to a downward correction to the Conference Board's China leading economic indicator -- and most markets were above their earlier lows.
Fears that a fledgling global economic recovery may yet be derailed were stoked by concerns of a slowdown in China and a sharp drop in the U.S. June consumer confidence index, following disappointing U.S. housing data.
In Japan, 31 out of the 33 Topix subindexes were down, with exporters' shares particularly hit hard on the euro's recent losses against the yen. Canon was down 2.8% and Fanuc shed 3.3%.
Retailers were lower on a Nikkei report that sales at major retailers fell 1.6% in the 2009 year, its first fall since Nikkei Inc. began surveying the sector in 1967. Fast Retailing was down 2.7% and Takashimaya dropped 1.4%.
Shionogi bucked the market, surging 7.7% after a U.S. judge ruled that its patent for AstraZeneca PLC's blockbuster cholesterol drug, Crestor, was valid and enforceable. AstraZeneca and its patent partner Shionogi had sued generic drugmakers to stop them from marketing copies of Crestor in U.S. before the patent expires in 2016.
The Australian share market was suffering its seventh consecutive decline, led by cyclical stocks. The losing streak, if sustained at the close, will be the longest run of losses in Sydney since the middle of the global financial crisis, in January 2008.
Among financials, major banks were down between 1.0% and 1.9%, while Macquarie fell 4.2%.
Resources and energy stocks were also under pressure, with BHP Billiton down 2.1%, Rio Tinto down 3.0% and Woodside Petroleum off 1.9.
The Taiwan market was lower, but declines were not as large as the falls on Wall Street, with some stocks gaining after Taiwan and China Tuesday signed a long-awaited trade pact.
China Airlines was up 2.9%, bucking the broad market decline, as it was expected to be a main beneficiary of the trade deal.
The euro was trading at $1.2217 against the U.S. dollar, from $1.2196 in late New York trade Tuesday and at Y108.29 against the yen, from Y107.97. The dollar was steady against the yen, at Y88.63 from Y88.54.
CHINA
Shares in China were down, though they were trading off earlier lows by the midday break.
Shanghai’s CSI 300 Index surrendered 28.95 points, or 1.1%, to 2,563.07
Citic Securities was off 2.0% and Gemdale Corp. was 1.0% lower.
Elsewhere;
Singapore’s Straits Times Index regained 5.17 points, or 0.2%, to 2,835.51
Korea’s Kospi index fell back 9.47 points, or 0.6%, to 1,698.29
Taiwan’s Taiex Index moved lower by 94.20 points, or 1.3%, to 7,329.37
New Zealand’s NZX index shed 18.98 points, or 0.6%, to 2,972.09
Australia’s S&P/ASX 200 took off 44.20 points, or 1%, to 4,301.50
