Stock losses persisted as the week drew to close, with investors reeling from the deteriorating health of tech bellwethers and financial firms.
Asian tech companies suffered Friday, as a wave of worse than expected earnings from makers of electronic components and consumer products hammered Japanese and South Korean stocks. Commodity producers also fell in Hong Kong and Australia, as hope for a first-half demand rebound faded. A distinct lack of confidence in the financial sector hit Australian banks.
Japan's Nikkei 225 index plunged 306.49 points, or 3.8%, to close at 7,745.25. The broader Topix index toppled by 2.8%, to 773.55.
Sony (nyse: SNE - news - people ) shares were dumped, dropping by 6.8%, to 1,802 yen ($20.41), after it warned Thursday that it expects to post a full-year operating loss of 260 billion yen ($2.9 billion), the company's first loss in 14 years. (See "Stringer Tries To Turn Sony's Distress To Advantage.") Canon (nyse: CAJ - news - people ) slumped by 5.2%, to 2,540 yen ($28.77), and Panasonic (nyse: PC - news - people ), by 5.3%, to 1,058 yen ($11.98).
In the automotive sector, Toyota Motor (nyse: TM - news - people ) shares decelerated by 2.3%, to 2,790 yen ($31.60), as the carmaker reportedly mulled cutting 1,000 full-tme jobs in Britain and the United States. Tire maker Bridgestone (other-otc: BRDCY - news - people ) laid off more than 500 employees at a Tennessee plant; its shares rolled down by 4.0%, to 1,151 yen ($13.04). Nippon Steel announced that it would more than double its planned production cuts for the current half-year. Nippon Steel (other-otc: NISTY - news - people ) shares tumbled by 5.0%, to 265 yen ($3.00), while competitor JFE Holdings (other-otc: JFEEF - news - people ), which had already scheduled reductions in output, dived by 7.9%, to 2,150 yen ($24.35). Oil exploration firm Inpex Corp. seeped down by 5.95%, to 648,000 yen ($7,339.87), as the short-term outlook for oil prices dimmed.
An adverse court ruling regarding the calculation of statute of limitations for customers claiming excess interest repayments smacked down the shares of consumer finance companies: Promise Co. (other-otc: PMSEY - news - people ) plunged by 14.2%, to 1,617 yen ($18.32), while Takefuji Corp. (other-otc: TAKAF - news - people ) fizzled by 11.7%, to 609 yen ($6.90). Shares in three nonlife insurers that are in talks to merge to form the largest such company in Japan all fell sharply Friday: Mitsui Sumitomo Insurance Group Holdings (other-otc: MSIGY - news - people ) fell by 7.2%, to 2,200 yen ($24.92); Aioi Insurance Co. (other-otc: AIOIY - news - people ), by 5.2%, to 404 yen ($4.58); and Nissay Dowa General Insurance Co. (other-otc: NDGIF - news - people ), by 5.65%, to 468 yen ($5.30). Leading brokerage Nomura Holdings (nyse: NMR - news - people ) dropped by 5.6%, to 606 yen ($6.86), following a lowering of its outlook by Goldman Sachs.
The dollar traded around 88.28 yen, weakening toward the end of the session, from 88.85 yen in late U.S. trading Thursday.
Hong Kong's Hang Seng index diminished by 0.6%, to 12,578.60. PetroChina (nyse: PTR - news - people ) slid nearly 3.0%, to 5.58 Hong Kong dollars (72 cents), on the weakening of crude prices. China Petroleum & Chemical Corp. (nyse: SNP - news - people ), or Sinopec, which had advised investors that its current-year profit is likely to drop by more than 50%, saw its shares percolate down by 1.7%, to 4.18 Hong Kong dollars (54 cents). Aluminum Corp. of China (nyse: ACH - news - people ), or Chalco, which had also warned on earnings, ratcheted down by 3.0%., to 3.20 Hong Kong dollars (41 cents). Yanzhou Coal (nyse: YZC - news - people ) got drilled by 5.8%, to 4.90 Hong Kong dollars (63 cents). Bellwethers HSBC Holdings (nyse: HBC - news - people ) (up 0.8%, to 57.45 Hong Kong dollars [$7.41]) and China Mobile (nyse: CHL - news - people ) (up 0.4%, to 68.45 Hong Kong dollars [$8.83]) enjoyed slight gains on short-covering ahead of the Lunar New Year holiday break. Fosun International (other-otc: FOSUY - news - people ), a diversified manufacturing and real estate conglomerate, tanked by 8.1%, to 2.28 Hong Kong dollars (29 cents), after releasing its own profit warning based on lower steel prices and the depressed property market.
Taiwanese markets remained closed in preparation for the Lunar New Year. China's Shanghai Composite index lost 0.7%, to 1,990.66. “China remains the big global growth wildcard in 2009. Despite the announcement of huge fiscal stimulus packages in recent months, investors remain very skeptical about Chinese and Asian growth,” Michael Hartnett, chief emerging markets equity strategist for Banc of America Securities-Merrill Lynch, wrote in a Friday report.
U.S. President Barack Obama's Treasury secretary nominee, Timothy Geithner, told the Senate that China is "manipulating" its currency, rhetoric signaling that the administration intends to up the ante in U.S.-China trade relations.
South Korea's KOSPI index dwindled by 2.05%, to 1,093.40. Samsung Electronics (other-otc: SSNLF - news - people ), which posted a quarterly operating loss Friday that far exceeded market forecasts, sank by 4.1%, to 442,000 won ($321.59). Its counterpart, LG Electronics (other-otc: LGEAF - news - people ), dived by 5.8%, to 68,300 won ($49.69), on persisting concerns about its own earnings. In contrast, SK Telecom (nyse: SKM - news - people ), the country's No. 1 mobile communications operator, posted fourth-quarter earnings that quadrupled, in part on one-time gains, yet shares dipped by 0.9%, to 210,000 won ($152.79). Fixed-line and broadband provider KT Corp. (nyse: KTC - news - people ) gave back 1.2%, to 41,000 won ($29.83).
Australia's S&P/ASX200 tumbled by 4.1%, to close at 3,342.70. The broader All Ordinaries index moved 3.8% lower, to 3,300.30. New Zealand's NZX 50 index backtracked by 1.1%, to 2,705.09.
With commodity prices weakening again, BHP Billiton (nyse: BHP - news - people ), which earlier this week scrapped a disastrous $3.7 billion nickel investment, skidded by 5.8%, to 27.45 Australian dollars ($17.68). Rio Tinto (nyse: RTP - news - people ) dipped by 1.9%, to 38.06 Australian dollars ($24.52). Gold miner Newcrest Mining (other-otc: NCMGY - news - people )'s shares were tarnished by 4.2%, to 30. 57 Australian dollars ($19.69), after having revealed a fall in production on Thursday.Oil firms also were set back: Woodside Petroleum (other-otc: WOPEY - news - people ) retreated by 4.6%, to 33.15 Australian dollars ($21.36), and Santos (nasdaq: STOSY - news - people ) surrendered 4.3%, to 13.40 Australian dollars ($8.63). Sims Metal Management (other-otc: SMUPF - news - people ), the world leader in recycling scrap metal, according to TradeTheNews.com, crashed by 20.5%, to 14.80 Australian dollars ($9.53), in the wake of a profit warning. Major Australian commercial banks reflected investor concern about weakness in the financial sector; all were down by at least 5.9% for the day, with National Australia Bank (other-otc: NABZY - news - people ) sliding by 6.5%, to 16.94 Australian dollars ($10.91), and Commonwealth Bank of Australia (other-otc: CBAUF - news - people ) depreciating by 7.2%, to 12.06 Australian dollars ($7.77).
India's BSE Sensex 30 index backslid by 1.6%, to 8,674.35. Infosys Technologies (nasdaq: INFY - news - people ) shed 2.1%, to 1204.65 rupees ($24.45), after reports emerged that the outsourcing giant is competing with IBM (nyse: IBM - news - people ) to buy Fidelity Investments' Indian information technology unit.
Elsewhere in Asia, the Straits Times index in Singapore declined by 1.4%, to 1685.23, and Thailand's Thai SET 50 index diminished by 1.3%, to 300.72.
Light, sweet crude for February delivery shed $1.37, to $42.30 a barrel, by the conclusion of Asian trading hours on the New York Mercantile Exchange.
--Reuters, the Associated Press and Thomson Financial contributed to this report.
Asian tech companies suffered Friday, as a wave of worse than expected earnings from makers of electronic components and consumer products hammered Japanese and South Korean stocks. Commodity producers also fell in Hong Kong and Australia, as hope for a first-half demand rebound faded. A distinct lack of confidence in the financial sector hit Australian banks.
Japan's Nikkei 225 index plunged 306.49 points, or 3.8%, to close at 7,745.25. The broader Topix index toppled by 2.8%, to 773.55.
Sony (nyse: SNE - news - people ) shares were dumped, dropping by 6.8%, to 1,802 yen ($20.41), after it warned Thursday that it expects to post a full-year operating loss of 260 billion yen ($2.9 billion), the company's first loss in 14 years. (See "Stringer Tries To Turn Sony's Distress To Advantage.") Canon (nyse: CAJ - news - people ) slumped by 5.2%, to 2,540 yen ($28.77), and Panasonic (nyse: PC - news - people ), by 5.3%, to 1,058 yen ($11.98).
In the automotive sector, Toyota Motor (nyse: TM - news - people ) shares decelerated by 2.3%, to 2,790 yen ($31.60), as the carmaker reportedly mulled cutting 1,000 full-tme jobs in Britain and the United States. Tire maker Bridgestone (other-otc: BRDCY - news - people ) laid off more than 500 employees at a Tennessee plant; its shares rolled down by 4.0%, to 1,151 yen ($13.04). Nippon Steel announced that it would more than double its planned production cuts for the current half-year. Nippon Steel (other-otc: NISTY - news - people ) shares tumbled by 5.0%, to 265 yen ($3.00), while competitor JFE Holdings (other-otc: JFEEF - news - people ), which had already scheduled reductions in output, dived by 7.9%, to 2,150 yen ($24.35). Oil exploration firm Inpex Corp. seeped down by 5.95%, to 648,000 yen ($7,339.87), as the short-term outlook for oil prices dimmed.
An adverse court ruling regarding the calculation of statute of limitations for customers claiming excess interest repayments smacked down the shares of consumer finance companies: Promise Co. (other-otc: PMSEY - news - people ) plunged by 14.2%, to 1,617 yen ($18.32), while Takefuji Corp. (other-otc: TAKAF - news - people ) fizzled by 11.7%, to 609 yen ($6.90). Shares in three nonlife insurers that are in talks to merge to form the largest such company in Japan all fell sharply Friday: Mitsui Sumitomo Insurance Group Holdings (other-otc: MSIGY - news - people ) fell by 7.2%, to 2,200 yen ($24.92); Aioi Insurance Co. (other-otc: AIOIY - news - people ), by 5.2%, to 404 yen ($4.58); and Nissay Dowa General Insurance Co. (other-otc: NDGIF - news - people ), by 5.65%, to 468 yen ($5.30). Leading brokerage Nomura Holdings (nyse: NMR - news - people ) dropped by 5.6%, to 606 yen ($6.86), following a lowering of its outlook by Goldman Sachs.
The dollar traded around 88.28 yen, weakening toward the end of the session, from 88.85 yen in late U.S. trading Thursday.
Hong Kong's Hang Seng index diminished by 0.6%, to 12,578.60. PetroChina (nyse: PTR - news - people ) slid nearly 3.0%, to 5.58 Hong Kong dollars (72 cents), on the weakening of crude prices. China Petroleum & Chemical Corp. (nyse: SNP - news - people ), or Sinopec, which had advised investors that its current-year profit is likely to drop by more than 50%, saw its shares percolate down by 1.7%, to 4.18 Hong Kong dollars (54 cents). Aluminum Corp. of China (nyse: ACH - news - people ), or Chalco, which had also warned on earnings, ratcheted down by 3.0%., to 3.20 Hong Kong dollars (41 cents). Yanzhou Coal (nyse: YZC - news - people ) got drilled by 5.8%, to 4.90 Hong Kong dollars (63 cents). Bellwethers HSBC Holdings (nyse: HBC - news - people ) (up 0.8%, to 57.45 Hong Kong dollars [$7.41]) and China Mobile (nyse: CHL - news - people ) (up 0.4%, to 68.45 Hong Kong dollars [$8.83]) enjoyed slight gains on short-covering ahead of the Lunar New Year holiday break. Fosun International (other-otc: FOSUY - news - people ), a diversified manufacturing and real estate conglomerate, tanked by 8.1%, to 2.28 Hong Kong dollars (29 cents), after releasing its own profit warning based on lower steel prices and the depressed property market.
Taiwanese markets remained closed in preparation for the Lunar New Year. China's Shanghai Composite index lost 0.7%, to 1,990.66. “China remains the big global growth wildcard in 2009. Despite the announcement of huge fiscal stimulus packages in recent months, investors remain very skeptical about Chinese and Asian growth,” Michael Hartnett, chief emerging markets equity strategist for Banc of America Securities-Merrill Lynch, wrote in a Friday report.
U.S. President Barack Obama's Treasury secretary nominee, Timothy Geithner, told the Senate that China is "manipulating" its currency, rhetoric signaling that the administration intends to up the ante in U.S.-China trade relations.
South Korea's KOSPI index dwindled by 2.05%, to 1,093.40. Samsung Electronics (other-otc: SSNLF - news - people ), which posted a quarterly operating loss Friday that far exceeded market forecasts, sank by 4.1%, to 442,000 won ($321.59). Its counterpart, LG Electronics (other-otc: LGEAF - news - people ), dived by 5.8%, to 68,300 won ($49.69), on persisting concerns about its own earnings. In contrast, SK Telecom (nyse: SKM - news - people ), the country's No. 1 mobile communications operator, posted fourth-quarter earnings that quadrupled, in part on one-time gains, yet shares dipped by 0.9%, to 210,000 won ($152.79). Fixed-line and broadband provider KT Corp. (nyse: KTC - news - people ) gave back 1.2%, to 41,000 won ($29.83).
Australia's S&P/ASX200 tumbled by 4.1%, to close at 3,342.70. The broader All Ordinaries index moved 3.8% lower, to 3,300.30. New Zealand's NZX 50 index backtracked by 1.1%, to 2,705.09.
With commodity prices weakening again, BHP Billiton (nyse: BHP - news - people ), which earlier this week scrapped a disastrous $3.7 billion nickel investment, skidded by 5.8%, to 27.45 Australian dollars ($17.68). Rio Tinto (nyse: RTP - news - people ) dipped by 1.9%, to 38.06 Australian dollars ($24.52). Gold miner Newcrest Mining (other-otc: NCMGY - news - people )'s shares were tarnished by 4.2%, to 30. 57 Australian dollars ($19.69), after having revealed a fall in production on Thursday.Oil firms also were set back: Woodside Petroleum (other-otc: WOPEY - news - people ) retreated by 4.6%, to 33.15 Australian dollars ($21.36), and Santos (nasdaq: STOSY - news - people ) surrendered 4.3%, to 13.40 Australian dollars ($8.63). Sims Metal Management (other-otc: SMUPF - news - people ), the world leader in recycling scrap metal, according to TradeTheNews.com, crashed by 20.5%, to 14.80 Australian dollars ($9.53), in the wake of a profit warning. Major Australian commercial banks reflected investor concern about weakness in the financial sector; all were down by at least 5.9% for the day, with National Australia Bank (other-otc: NABZY - news - people ) sliding by 6.5%, to 16.94 Australian dollars ($10.91), and Commonwealth Bank of Australia (other-otc: CBAUF - news - people ) depreciating by 7.2%, to 12.06 Australian dollars ($7.77).
India's BSE Sensex 30 index backslid by 1.6%, to 8,674.35. Infosys Technologies (nasdaq: INFY - news - people ) shed 2.1%, to 1204.65 rupees ($24.45), after reports emerged that the outsourcing giant is competing with IBM (nyse: IBM - news - people ) to buy Fidelity Investments' Indian information technology unit.
Elsewhere in Asia, the Straits Times index in Singapore declined by 1.4%, to 1685.23, and Thailand's Thai SET 50 index diminished by 1.3%, to 300.72.
Light, sweet crude for February delivery shed $1.37, to $42.30 a barrel, by the conclusion of Asian trading hours on the New York Mercantile Exchange.
--Reuters, the Associated Press and Thomson Financial contributed to this report.
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