The vast majority of Asian stock markets and currencies declined Wednesday as sluggish U.S. housing data and a sovereign-rating downgrade of Ireland spurred risk aversion and led to a selloff.
Japan’s Nikkei 225 Index dropped another 149.75 points, or 1.7%, to finish Wednesday’s session at 8,845.39, its lowest close since April 2009.
Hong Kong’s Hang Seng Index fell 23.73 points, or 0.1%, to 20,634.98
The decline followed sharp losses in North America, after U.S. existing-home sales in July tumbled a record 27.2% -- twice as much as analysts had expected -- strengthening arguments that the U.S. economic recovery has stalled. Additionally, Standard & Poor's late Tuesday lowered Ireland's long-term sovereign-credit rating by one notch to double-A-minus from double-A.
Wednesday marked the fourth straight day of losses for markets in Japan, Hong Kong, Australia and South Korea.
The generally depressed global investor sentiment and the yen's recent strength weighed on Japanese stocks
Stocks dropped across sectors, led by exporters. Nikon Corp. fell 2.6%, Canon Inc. lost 2.7% and Honda Motor dropped 3.1%.
The U.S. dollar, which hit a 15-year low of 83.57 yen overnight, rose as high as 84.47 yen in choppy Asian trading Wednesday. But it slipped back to around 84.29 yen after Finance Minister Yoshihiko Noda said, following a meeting with Prime Minister Naoto Kan, that he hadn't received any specific instructions to prevent the yen's rise.
Analysts said the markets now looked to Tokyo for additional monetary stimulus.
Shares of Japanese real-estate companies fell less than the broad market's decline on hopes of additional monetary easing measures, while a government survey released Tuesday showed land prices dropped in fewer locations in the country in July compared with three months earlier.
Mitsui Fudosan dropped 0.9% and Mitsubishi Estate gave up 0.7%.
Nippon Sheet Glass tumbled 5% on share-dilution concerns after it said Tuesday that it will raise up to 49.81 billion yen ($591.8 million U.S.) through equity financing to renew and expand its plants as well as to repay debts.
In Seoul, Kumho Industrial fell by the day's 15% limit after saying it plans to reduce capital to 411.92 billion won ($345.4 million U.S.) from 2.542 trillion won as part of its cash-strapped parent Kumho Asiana Group's continuing restructuring program.
The euro was recently buying $1.2624 U.S. against $1.2674 U.S. late Tuesday in New York, and was at 106.71 yen against 106.64 yen.
CHINA
Chinese airline stocks fell after Brazilian plane manufacturer Embraer confirmed the crash of a Henan Airlines-operated Embraer jet in the Chinese city of Yichun. Forty-two people on board the plane were killed and the remaining 54 injured
Shanghai’s CSI 300 Index decreased 68.80 points, or 2.4%, to 2,843.02
Air China lost 2.2% and China Eastern Airlines dropped 3.2% in Shanghai.
Banks and property developers also dropped as investors remained cautious amid Beijing's push to rein in local-government borrowing and on concerns over policy tightening targeted at the property sector. China Construction Bank fell 2.1% in Shanghai and China Vanke tumbled 4% in Shenzhen.
Elsewhere;
Singapore’s Straits Times Index bucked the general trend and actually gained 3.70 points or 0.1%, to 2,926.55
Korea’s Kospi index gave back 25.74 points, or 1.5%, to 1,734.79
Taiwan’s Taiex Index collapsed 203.66 points, or 2.6%, to 7,736.98
New Zealand’s NZX index demurred 18.58 points, or 0.6%, to 3,006.06
Australia’s S&P/ASX 200 lost 61.20 points, or 1.4%, to 4,320.10
