Asian stocks had the biggest weekly drop in a year as US reports heightened concern that a housing slump is spreading in the world's biggest economy. BHP Billiton and Samsung Electronics Co led the slide.
"You've got an economic impact from lower housing prices and housing demand," said Simon Doyle, a strategist at Schroder Investment Management Australia Ltd. in Sydney, which manages the equivalent of US$11.4 billion. "If the US is under question, there might be a broader contagion."
The Morgan Stanley Capital International Asia-Pacific Index lost 3.9 percent to 154.50. It closed at a record 161.40 on July 24, before the largest US mortgage lender said property demand is weakening and the government announced the biggest drop in new home sales since January.
All 10 industry groups that make up the MSCI declined, with a measure of raw-materials producers such as BHP falling the most. In the US, the Standard & Poor's 500 Index had its worst week in five years and the UK's FTSE 100 plunged the most since Jan. 24, 2003.
"Crumbling global equity markets are hurting investor confidence," said Andrew Wang, who helps manage US$2.9 billion at Prudential Financial Securities Investment Trust Enterprise (保德信投信) in Taipei. "This isn't the end of the bull market, though it must feel like that for some panicky investors."
Net sales by overseas investors reached records on Friday in South Korea and Taiwan, causing benchmarks in both markets to slide more than 4 percent.
TAIPEI
Taiwanese share prices closed sharply lower, falling 4.22 percent in a global sell-off triggered by Wall Street's slump overnight amid worries over US mortgage problems and fears of a credit squeeze on corporates, dealers said.
The TAIEX closed down 404.14 points at the day's low of 9,162.28 points on turnover of NT$295.54 billion (US$9.01 billion).
Decliners led risers 1,330 to 273, with 66 stocks unchanged.
"Wall Street's free fall pulled everybody down, Taiwan included," Jih Sun Securities Investment Consulting Co (日盛投顧) deputy manager Wilson Lien said.
Some sporadic bargain-hunting emerged but was too weak to offset the impact of the global slide on the local market, which sank even deeper toward the close, he said.
Direction will now depend on when Wall Street and other major bourses can stabilize, he added.
TOKYO
Japanese stocks slumped 2.36 percent to a near three-month low, hit by sharp losses on Wall Street where fresh signs of trouble in the US housing market spooked investors, dealers said.
They said a stronger yen hit exporters, while political uncertainty ahead of this weekend's Japanese elections also undermined confidence.
The Tokyo Stock Exchange's benchmark NIKKEI-225 index of leading shares fell 418.28 points to 17,283.81, the lowest closing level since May 1. The broader TOPIX index of all first-section shares lost 37.47 points or 2.16 percent to 1,699.71, slipping below the key 1,700 points level.
HONG KONG
Hong Kong share prices closed 2.76 percent lower, falling heavily after Wall Street losses overnight amid growing concerns about the US housing sector sparked a sell-off in Asia, dealers said.
The Hang Seng Index closed down 641.28 points at 22,570.41, off a low of 22,443.10 and a high of 22,854.54.
SHANGHAI
Chinese share prices were mixed, with the main Shanghai index slightly lower as the market adjusted after hitting record highs the previous day, dealers said.
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