Geeze, Louise, look at all them negative numbers!
How is the Fed’s reinstated Operation Twist working so far? Not too well, I imagine. Decoupling, we scarcely knew thee.
June 21, 2012, 10:38 p.m. EDT
Asia markets sink amid global growth fears
By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Asia markets sank early Friday, tracking sharp falls on Wall Street, as signs of a deepening global economic slowdown wiped away investor appetite for risk.
Resource sector stocks tumbled after weak manufacturing reports from around the world hit commodities hard overnight, sending crude-oil prices below $80 a barrel and gold futures under $1,600 an ounce in New York trading.
South Korea’s Kospi KR:SEU -2.25% dropped 2%, Hong Kong’s Hang Seng Index HK:HSI -1.03% lost 1.3%, Australia’s S&P/ASX 200 index AU:XJO -1.16% fell 1% and Japan’s Nikkei Stock Average JP:100000018 -0.44% lost 0.5%.
China’s Shanghai Composite was closed for a holiday.
Most indexes are on track to post a weekly loss, although a weaker yen helped Japanese shares gain 2.4% so far this week.
A batch of soft economic data sent U.S. stocks sharply lower on Thursday, with sentiment further depressed by disappointing euro-area and Chinese manufacturing reports. Read more on the U.S. session.
Adding to investor concerns, independent stress tests of Spanish banks revealed capital needs for financial institutions in an adverse scenario could be as high as 62 billion euro (78.8 billion).
After the U.S. close, Moody’s Investor Service downgraded 15 global banks citing volatility and risks in capital markets.
Financials were weaker across Asia. In Hong Kong, HSBC Holdings PLC HK:5 -1.10% HBC -2.46% traded down 1.1%. BOC Hong Kong Holdings Ltd. HK:2388 -0.21% BHKLY -1.37% dropped 1.5% and Agricultural Bank of China Ltd. HK:1288 -1.32% ACGBY -1.42% lost 1.5%.
Tokyo-listed shares of Mitsubishi UFJ Financial Group Inc. JP:8306 -1.08% MTU -2.15% shed 1.1%, while Australia & New Zealand Banking Group Ltd. AU:ANZ -1.74% ANZBY -2.95% lost 1.6% in Sydney.
Exporters hit
Global growth concerns slugged exporters across the region. Fashion retailer Esprit Holdings Ltd. HK:330 -1.35% ESPGY -1.14% sank 1.9% and luxury goods maker Prada S.p.A HK:1913 +0.60% PRDSY -7.91% lost 2.1% in Hong Kong.
Losses were steeper for major exporters in Seoul. Samsung Electronics Co. SSNGY 0.00% , tumbled 3% and LG Electronics Inc. LGEIY 0.00% gave up 2.3%.
In Tokyo, Suzuki Motor Corp. JP:7269 -2.67% SZKMY -0.18% declined 2.2% and Nintendo Co. JP:7974 -0.53% NTDOY -0.28% dropped 1.1%.
Olympus Corp. JP:7733 +1.71% OCPNY -1.69% outperformed, with shares up 1.7%, after the Nikkei reported the firm is entering final stage talks for a near 50 billion yen ($625 million) investment from Sony Corp. JP:6758 +4.36% SNE -3.01% in an attempt to rebuild the company from last year’s accounting scandal. Sony stock jumped 3.6%. Read more on Sony’s potential Olympus investment..
A separate Nikkei report said Sony is close to agreeing to a technology alliance for television panels with Panasonic Corp. JP:6752 +1.13% PC -0.66% . Panasonic shares rose 1.1%.
Resources weak
A weak showing for resource firms dragged across Asia.
Among energy firms losing ground after oil’s overnight slump, Tokyo-listed Inpex Corp. JP:1605 -2.91% IPXHY -0.98% sank 2.4% and Santos Ltd. AU:STO -2.16% SSLTY -6.12% traded down 2.3% in Sydney.
Also in Sydney, index heavyweight BHP Billiton Ltd. AU:BHP -2.67% BHP -5.34% lost 2.5% and rival Rio Tinto Ltd. AU:RIO -1.85% RIO -5.21% dropped 1.8% and Hong Kong listed Aluminum Corp. of China Ltd. HK:2600 -0.60% ACH -5.34% lost 2.1%.
Shares of gold producer Newcrest Mining Ltd. AU:NCM -3.64% NCMGY -7.09% tumbled 3.2%, while gold miner Zhaojin Mining Industry Co. ZHAOF -2.94% HK:1818 -3.59% skidded 4.8% in Hong Kong, following the drop in gold prices.
Virginia Harrison is a MarketWatch reporter based in Sydney.
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