Japanese stocks may decline for a third week after a quarterly central bank survey renewed concerns that the world's second-largest economy may be slipping back into recession.
Mizuho Holdings Inc, Nippon Telegraph & Telephone Corp and other companies that depend on domestic demand may lead the drop.
"We're seeing increasingly pessimistic news about the Japanese economy, and that puts pressure on domestic demand-related stocks," said Yasumasa Nishimura, who manages about US$164 million in Japanese equities at Dai-Ichi Kangyo Asset Management Co.
He recently increased his stake in chemical makers that are more dependent on overseas demand, while selling some of his telecommunications shares.
Elsewhere in Asia, South Korean stocks may fall before next Thursday's presidential election. Voters will decide between a candidate who wants to crack down on insider trading and a former Supreme Court judge. Samsung Electronics Co and other companies with large market values may lead declines.
Shares of Hong Kong real-estate developers such as Sun Hung Kai Properties Ltd may extend last week's slide on concern the government's move to open one of its borders with mainland China 24 hours a day may drive property prices lower.
Japanese markets will open for their last full week of the year. The Nikkei 225 Stock Average and the TOPIX index have both dropped 19 percent this year and are headed for their third straight annual decline.
The Nikkei slid 3.9 percent to 8516.07 this week, its biggest weekly drop in seven. The Nikkei is 213 points away from its lowest close since March 25, 1983.
The TOPIX index fell 2.9 percent to 835.77 this week, led by phone shares. It's 20 points from its lowest close since Oct. 2, 1984.
* The Nikkei 225 Stock Average and the TOPIX index have both dropped 19 percent this year and are headed for their third straight annual decline.
* The Nikkei slid 3.9 percent to 8516.07 this week, its biggest weekly drop in seven.
* The Nikkei is 213 points away from its lowest close since March 25, 1983.
Japanese economic growth slowed to 0.8 percent in the third quarter from 0.9 percent in the previous three months. The Bank of Japan's quarterly Tankan survey showed large manufacturers expect sentiment to drop to minus 10 in March, while they plan to cut capital spending by 10.7 percent in the fiscal year ending March 31.
hong kong
In Hong Kong, Sun Hung Kai Properties and Cheung Kong (Holdings) Ltd, the city's two biggest developers, may decline.
Hong Kong's government on Thursday said it would open its second-busiest border with China around the clock from next month.
Homes in Shenzhen, a Chinese city adjoining Hong Kong, are about 50 percent cheaper than apartments in Hong Kong.
Hong Kong's "property prices will definitely come down," said John Koh, who manages US$200 million at Daiwa Asset Management Ltd. Koh said he expects home prices in the New Territories, a district neighboring China, to drop 5 percent next year.
The Hang Seng property index, which tracks seven developer stocks, dropped 5 percent last week.
RSS