Japanese stocks fell this week, with benchmarks sliding to their lowest in almost two decades.
Sony Corp and Toyota Motor Co led the drop, as the yen gained against the dollar amid concerns of a US-led war against Iraq.
The yen's strength "will reduce exporters' profits," said David Chapman, who helps manage US$650 million at Towry Law Asia Ltd in Hong Kong. "Most investors will wait until the problem in the Middle East is settled before they can commit cash."
The Nikkei 225 Stock Average shed 1.8 percent for the week, while the TOPIX index fell 2.5 percent. For February, the Nikkei rose 0.3 percent, its first gain in three months, while the TOPIX declined for a third month. Sumitomo Mitsui Financial Group Inc.
and other banks were the TOPIX's second-worst performers in February, after paper companies, on concern plans to sell more preferred stock will dilute their future earnings per share.
Benchmarks in South Korea, Taiwan and Hong Kong fell this week. Samsung Electronics Co and Kookmin Bank were the heaviest drags on the KOSPI index as a missile test by North Korea heightened tensions in the region.
South Korea's KOSPI dropped 4.7 percent this week, its biggest weekly decline since the five days ended Jan. 10. The TAIEX fell 2.6 percent in the holiday-shortened week. The Taiwan market was closed for a holiday on Friday.
Hong Kong's Hang Seng Index had its third monthly drop. China Mobile (HK) Ltd led declines among mainland phone shares after the company said it will cut some charges by 50 percent.
Japanese exporters fell on concerns a slump in the dollar will cut the value of their overseas sales.
Exports accounted for 50 percent of the nation's economic growth last quarter.
Sony fell 2.2 percent this week. The maker of Vaio computers relies on the US for a third of sales. Toyota slid 3.8 percent this week. The world's third-largest automaker gets as much as 70 percent of its operating profit from North America.
Matsushita Electric Industrial Co, the world's biggest maker of consumer electronics, slid 8.4 percent this week. The maker of Panasonic brand electronics exports 35 percent of its products.
The TOPIX Bank Index fell 6.4 percent in the past month as Sumitomo Mitsui and four other rivals announced plans to raise more than Japanese Yen 2 trillion by March 31 to boost capital.
Sumitomo Mitsui slumped 12 percent this week after it said that it increased a sale of preferred shares by 15 percent to Y345 billion, the biggest sale of securities in Japan this year.
Mizuho Holdings Inc, the nation's biggest bank by assets, lost 7.9 percent this week. The bank earlier this week announced plans to sell US$1 billion of preferred shares to overseas investors.
South Korea
Samsung Electronics Co, South Korea's largest stock by value, was the heaviest drag on the Kospi. The benchmark index dropped 2.8 percent in February, its third monthly decline.
This week, Samsung fell 7.5 percent and Kookmin Bank, the second biggest drag on the benchmark's decline, shed 11 percent.
Hynix Semiconductor Inc, the world's third-largest maker of computer memory chips, fell 17 percent this week.
Taiwan
Taiwan Semiconductor Manu-facturing Co (
RSS