"UFJ has to provide investors with assurances that it's going to seriously turn around its business," said Shigeharu Shiraishi, who oversees the equivalent of US$15 billion at SG Yamaichi Asset Management Co in Tokyo. "Concern that UFJ doesn't have a clear view of how to tackle its problems is worsening market sentiment."
For the week, UFJ, the only one of Japan's four largest banks to report a loss last fiscal year, lost 6.9 percent. Mizuho Financial Group Inc, the nation's largest bank, fell 5.7 percent, its first weekly drop in three weeks.
The Jakarta Composite Index fell 4.9 percent for the week on concern a weaker rupiah will push up inflation, prompting an increase in interest rates that may slow growth.
PT Indocement Tunggal Prakarsa, Indonesia's second-biggest cement maker by volume, slumped 9.4 percent. Indocement had foreign currency debt equivalent to 4.62 trillion rupiah as of March 31 this year. PT Telekomunikasi Indonesia, the biggest company on the exchange, tumbled 7.4 percent on concerns a weaker rupiah will make it more expensive to pay its debt or fund expansion.
Banking stocks also fell on concern central bank measures to prop up the local currency will soak up funds they could have been used for lending. PT Bank Mandiri, the country's largest lender, plunged 12 percent in the five days ended yesterday.
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