Asian markets sank on Wednesday, taking their lead from another sell-off on Wall Street, while Tokyo took a hit as the yen climbed against the dollar with profit-takers moving in following last week's greenback rally.
Tokyo's benchmark Nikkei index tumbled 393.72 points or 2.59 percent to finish at 14,830.39, while the Topix index of all first-section shares slipped 2.13 percent, or 26.27 points, to 1,206.94.
"The lack of participants is showing what happens when there is also a lack of trading cues or negative factors -- volatility kicks up," said Sumitomo Mitsui Banking Corp. strategist Daisuke Uno.
"The market is up one day, down the next... there is no direction," he added.
A government survey of Japanese household confidence fell 2.2 points to 38.3 in February from the previous month, a third straight loss. A reading below 50 indicates pessimists outnumber optimists.
The figure comes as Japan prepares to hike sales tax next month to eight percent from five percent to help tackle its huge debts, but critics have warned it will crimp spending and throw a tentative economy recovery off track.
Exporters were hit as the dollar weakened, falling to 102.85 yen in Tokyo, from 102.94 yen in New York, and well below the 103.30 yen seen earlier Tuesday.
Among exporters Honda shed 1.95 percent to 3,765 yen and Sony finished down 1.44 percent at 1,840 yen.
Financial shares also sank, with insurer Dai-ichi Life down 2.12 percent at 1,522 yen while brokerage giant Nomura Holdings fell 2.84 percent to 683 yen.
Hong Kong's Hang Seng index dropped 367.66 points or 1.65 percent to 21,901.95, with too few catalysts to boost buying after a recent set of weak indicators out of Beijing that have fuelled concerns about Chinese economy.
Media firm ChinaVision jumped 185.94 percent to HK$1.83, buoyed by e-commerce giant Alibaba announcing it was taking a majority stake in it on Tuesday.
Internet giant Tencent fell 2.51 percent to HK$602, HSBC dropped 0.34 percent to HK$78.60, and China Mobile sank 1.55 percent to HK$70.05.
Shanghai closed down 0.17 percent as the benchmark composite index fell 3.47 points to 1,997.69, while the Shenzhen Composite Index, which tracks stocks on China's second exchange, slipped 0.14 percent, or 1.51 points, to 1,062.79.
"Tuesday's rebound didn't have enough volume and the market hasn't recovered from the steep slump on Monday. There's too much negative news coming together, pressuring sentiment," said Deng Wenyuan, analyst with Soochow Securities.
China is due Thursday to release data on industrial output and retail sales.
Fears for the economy were further stoked by another possible corporate bond default in China, days after Chaori Solar Energy Science & Technology Co. become the first.
Power equipment maker Baoding Tianwei Baobian Electric Co., said Tuesday its bonds would be suspended from trading after it posted two consecutive years of losses.
Shares in Tianwei dropped 5.0 percent to 4.29 yuan as it resumed trading Wednesday after a one-day suspension for the announcement.
"Worries are mainly coming from disappointing economic data and a weaker yuan, but of course, we're also watching whether there will be more bond defaults to come," Zhang Gang, an analyst with Central China Securities, told Dow Jones Newswires.
Matthew Sherwood, head of investment market research at Perpetual in Sydney, said: "China has gone from being one of the saviours of the world to one of its weakest links."
Oil-related stocks fell after media reports about alleged bribery in the sector. Sinopec fell 4.79 percent to 4.97 yuan and PetroChina fell 2.20 percent to 7.56 yuan.
- Yen climbs against dollar, euro -
The greenback stood at 102.90 yen, falling from 102.94 yen in New York and well down from the 103.30 yen seen in Tokyo Tuesday.
And the euro was 142.52 yen from 142.73 yen in US trade, also sharply lower than 143.30 yen earlier Tuesday in Asia.
Oil prices slipped. New York's main contract, West Texas Intermediate for April delivery, dipped 86 cents to $99.17 in afternoon trade, and Brent North Sea crude for April eased 72 cents to $107.83.
Gold fetched $1,356.38 an ounce at 1050 GMT compared with $1,348.55 late Tuesday.
The Sydney market fell 0.55 percent, or 29.6 points, to 5,384.2 while Seoul shed 1.60 percent, or 31.33 points, to 1,932.54.
In other markets:
-- Bangkok lost 0.58 percent or 7.86 points to 1,356.42.
Construction giant Italian-Thai Development fell 3.59 percent to 3.76 baht, while Krungthai Card added 4.88 percent to 32.25 baht.
-- Jakarta closed down 0.42 percent, or 19.83, at 4,684.39.
Palm Oil producer Astra Agro Lestari lost 1.35 percent to 27,450 rupiah, while cement maker Semen Indonesia fell 2.10 to 15,125 rupiah.
-- Kuala Lumpur's main stock index list 0.54 percent, or 9.95 points, to 1,818.60.
Plantation giant Sime Darby shed 0.1 percent to 9.20 ringgit, while Gamuda fell 4.7 percent to 4.48. OCK Group gained 5.9 percent to 0.90 ringgit.
-- Mumbai gained 0.14 percent or 29.80 points to end at 21,856.22 points.
Indraprastha Gas rose 5.24 percent or 13.60 rupees to 272.90 rupees per share. L&T Finance Holdings gained 4.99 percent or 4.05 rupees to 85.20 rupees per share.
-- Singapore closed down 1.02 percent, or 31.97 points, at 3,097.43.
Real Estate developer Capitaland gained 0.72 percent to Sg$2.79, while agribusiness company Wilmar International eased 1.70 percent to Sg$3.47
-- Taipei slipped 0.20 percent, or 17.60 points, to 8,684.73.
Taiwan Semiconductor Manufacturing Co was 0.88 percent lower at Tw$113.0 while leading chip design house MediaTek shed 3.90 percent to Tw$456.0.
-- Wellington gave up 0.11 percent, or 5.41 points, to 5,096.53.
Fletcher Building was down 1.65 percent at NZ$9.53 and Air New Zealand held steady at NZ$1.835.
-- Manila fell 1.03 percent, or 67.11 points, to 6,462.47.
Philippine Long Distance Telephone lost 1.35 percent to end at 2,782.00 pesos, SM Investments eased 0.97 percent to 717.00 pesos and Ayala Land gave up 2.73 percent to 28.50 pesos.
Asian markets sank on Wednesday, taking their lead from another sell-off on Wall Street, while Tokyo took a hit as the yen climbed against the dollar with profit-takers moving in following last week’s greenback rally.
Tokyo’s benchmark Nikkei index tumbled 393.72 points or 2.59 percent to finish at 14,830.39, while the Topix index of all first-section shares slipped 2.13 percent, or 26.27 points, to 1,206.94.
“The lack of participants is showing what happens when there is also a lack of trading cues or negative factors — volatility kicks up,” said Sumitomo Mitsui Banking Corp. strategist Daisuke Uno.
“The market is up one day, down the next… there is no direction,” he added.
A government survey of Japanese household confidence fell 2.2 points to 38.3 in February from the previous month, a third straight loss. A reading below 50 indicates pessimists outnumber optimists.
The figure comes as Japan prepares to hike sales tax next month to eight percent from five percent to help tackle its huge debts, but critics have warned it will crimp spending and throw a tentative economy recovery off track.
Exporters were hit as the dollar weakened, falling to 102.85 yen in Tokyo, from 102.94 yen in New York, and well below the 103.30 yen seen earlier Tuesday.
Among exporters Honda shed 1.95 percent to 3,765 yen and Sony finished down 1.44 percent at 1,840 yen.
Financial shares also sank, with insurer Dai-ichi Life down 2.12 percent at 1,522 yen while brokerage giant Nomura Holdings fell 2.84 percent to 683 yen.
Hong Kong’s Hang Seng index dropped 367.66 points or 1.65 percent to 21,901.95, with too few catalysts to boost buying after a recent set of weak indicators out of Beijing that have fuelled concerns about Chinese economy.
Media firm ChinaVision jumped 185.94 percent to HK$1.83, buoyed by e-commerce giant Alibaba announcing it was taking a majority stake in it on Tuesday.
Internet giant Tencent fell 2.51 percent to HK$602, HSBC dropped 0.34 percent to HK$78.60, and China Mobile sank 1.55 percent to HK$70.05.
Shanghai closed down 0.17 percent as the benchmark composite index fell 3.47 points to 1,997.69, while the Shenzhen Composite Index, which tracks stocks on China’s second exchange, slipped 0.14 percent, or 1.51 points, to 1,062.79.
“Tuesday’s rebound didn’t have enough volume and the market hasn’t recovered from the steep slump on Monday. There’s too much negative news coming together, pressuring sentiment,” said Deng Wenyuan, analyst with Soochow Securities.
China is due Thursday to release data on industrial output and retail sales.
Fears for the economy were further stoked by another possible corporate bond default in China, days after Chaori Solar Energy Science & Technology Co. become the first.
Power equipment maker Baoding Tianwei Baobian Electric Co., said Tuesday its bonds would be suspended from trading after it posted two consecutive years of losses.
Shares in Tianwei dropped 5.0 percent to 4.29 yuan as it resumed trading Wednesday after a one-day suspension for the announcement.
“Worries are mainly coming from disappointing economic data and a weaker yuan, but of course, we’re also watching whether there will be more bond defaults to come,” Zhang Gang, an analyst with Central China Securities, told Dow Jones Newswires.
Matthew Sherwood, head of investment market research at Perpetual in Sydney, said: “China has gone from being one of the saviours of the world to one of its weakest links.”
Oil-related stocks fell after media reports about alleged bribery in the sector. Sinopec fell 4.79 percent to 4.97 yuan and PetroChina fell 2.20 percent to 7.56 yuan.
– Yen climbs against dollar, euro –
The greenback stood at 102.90 yen, falling from 102.94 yen in New York and well down from the 103.30 yen seen in Tokyo Tuesday.
And the euro was 142.52 yen from 142.73 yen in US trade, also sharply lower than 143.30 yen earlier Tuesday in Asia.
Oil prices slipped. New York’s main contract, West Texas Intermediate for April delivery, dipped 86 cents to $99.17 in afternoon trade, and Brent North Sea crude for April eased 72 cents to $107.83.
Gold fetched $1,356.38 an ounce at 1050 GMT compared with $1,348.55 late Tuesday.
The Sydney market fell 0.55 percent, or 29.6 points, to 5,384.2 while Seoul shed 1.60 percent, or 31.33 points, to 1,932.54.
In other markets:
— Bangkok lost 0.58 percent or 7.86 points to 1,356.42.
Construction giant Italian-Thai Development fell 3.59 percent to 3.76 baht, while Krungthai Card added 4.88 percent to 32.25 baht.
— Jakarta closed down 0.42 percent, or 19.83, at 4,684.39.
Palm Oil producer Astra Agro Lestari lost 1.35 percent to 27,450 rupiah, while cement maker Semen Indonesia fell 2.10 to 15,125 rupiah.
— Kuala Lumpur’s main stock index list 0.54 percent, or 9.95 points, to 1,818.60.
Plantation giant Sime Darby shed 0.1 percent to 9.20 ringgit, while Gamuda fell 4.7 percent to 4.48. OCK Group gained 5.9 percent to 0.90 ringgit.
— Mumbai gained 0.14 percent or 29.80 points to end at 21,856.22 points.
Indraprastha Gas rose 5.24 percent or 13.60 rupees to 272.90 rupees per share. L&T Finance Holdings gained 4.99 percent or 4.05 rupees to 85.20 rupees per share.
— Singapore closed down 1.02 percent, or 31.97 points, at 3,097.43.
Real Estate developer Capitaland gained 0.72 percent to Sg$2.79, while agribusiness company Wilmar International eased 1.70 percent to Sg$3.47
— Taipei slipped 0.20 percent, or 17.60 points, to 8,684.73.
Taiwan Semiconductor Manufacturing Co was 0.88 percent lower at Tw$113.0 while leading chip design house MediaTek shed 3.90 percent to Tw$456.0.
— Wellington gave up 0.11 percent, or 5.41 points, to 5,096.53.
Fletcher Building was down 1.65 percent at NZ$9.53 and Air New Zealand held steady at NZ$1.835.
— Manila fell 1.03 percent, or 67.11 points, to 6,462.47.
Philippine Long Distance Telephone lost 1.35 percent to end at 2,782.00 pesos, SM Investments eased 0.97 percent to 717.00 pesos and Ayala Land gave up 2.73 percent to 28.50 pesos.
