Most Asian markets fell on Friday on a mixture of regional factors, from expectations China may raise interest rates soon to signs of growing pessimism among Japanese corporate executives.
Lingering worries about fallout from the subprime mortgage crisis in the US, a vital export market, continued to weigh on sentiment.
In Tokyo, the benchmark Nikkei 225 stock index fell 22.01 points, or 0.14 percent, to 15,514.51 points, bringing its three-day loss to 3.3 percent.
PHOTO: AFP
Investors were disappointed by the Bank of Japan's quarter tankan survey that showed confidence at major Japanese companies has fallen to its lowest in more than two years amid worries about the strong yen and higher oil prices.
The survey's most-watched number, the sentiment index for large manufacturers, fell from 23 last quarter to 19, the lowest since September 2005.
Real estate companies like Mitsui Fudosan Co were among the decliners.
Banking stocks also fell after Citigroup Inc said overnight it plans to assume control of the seven "structured investment vehicles" the bank advises to help them repay their debts. Mizuho Financial Group sank 4.9 percent and Mitsubishi UFJ Financial Group fell 4.78 percent.
Meanwhile, the dollar's recent recovery against the yen helped lift exporters like Matsushita Electric Industrial Co and Nintendo.
With no major market-moving news expected in the week to come, traders expect the Nikkei to be volatile.
"That's what is likely to happen while the market lacks domestic catalysts," said Hitoshi Yamamoto CEO of Fortis Asset Management Japan.
In Hong Kong, shares fell on continued concern about the US economy and expectations China might raise interest rates this weekend to curb inflation.
The blue-chip Hang Seng Index fell 180.81 points, or 0.65 percent, to 27,563.64. It's dropped 6.8 percent since it closed at 29,530.32 last Thursday.
Traders said the correction may not be over yet and selling pressure will remain in the near term on continuing concerns over the weakening US economy.
"Trading has become lethargic with no positive leads now," said Castor Pang, a strategist at Sun Hung Kai Research.
Banks were under pressure on Friday on uncertainty over the impact of the sub-prime crisis. Industrial and Commercial Bank of China fell 3.4 while China Construction Bank dropped 2.4 percent.
Many Chinese companies fell on expectations China's central bank may raise interest rates over the weekend to curb inflation.
But Chinese stocks rose, led by strong gains in liquor makers who are expected to benefit from higher food prices.
A rebound in property developers also helped buoy the market.
The benchmark Shanghai Composite Index gained 1 percent, or 49.86 points, to 5,007.91.
TAIPEI
Taiwan's main stock index fell to a four-month low on continued concerns over rising labor costs in China. The Weighted Price Index of the Taiwan Stock Exchange shed 0.9 percent to finish at 8,118.1.
JAKARTA
Indonesian shares fell amid the general risk aversion clouding regional markets. The main stock index dropped 0.6 percent to finish at 2,740.1.
BANGKOK
Thailand's main stock index rose 0.4 percent to 836.40.
KUALA LUMPUR
Malaysian shares declined in profit-taking ahead of the weekend, with overall trading activity sluggish. The Kuala Lumpur Composite Index fell 0.5 percent to 1,403.4.
MANILA
Philippine shares tumbled, hurt by foreign selling as stock markets retreated around the region. The Philippine Stock Exchange Index fell 2.4 percent to 3,538.7.
SEOUL
South Korean shares fell as stock of companies with business in China were dragged lower on worries about higher rates and that new Chinese labor laws will make it more difficult next year on foreign companies operating there. The Korea Composite Stock Price Index, or Kospi, fell 1.1 percent to 1,895.1.
SINGAPORE
Singapore shares sank for the third straight session on the enduring worries over the US economy and as markets dropped throughout Asia. The Straits Times Index lost 0.4 percent to close at 3,466.4.
SYDNEY
Australian stocks fell on broad selling as traders fretted about how Wall Street might react to more news on the US subprime lending crisis.
The benchmark S&P/ASX 200 index dropped 1.6 percent to 6,491.7.
MUMBAI
Indian shares slipped on Friday, dragged down by profit taking in telecommunication firm Bharti Airtel and banking stocks.
The Bombay Stock Exchange's 30-share Sensex index fell 74 points, or 0.4 percent, to 20,031 points.
On the broader National Stock Exchange, the 50-company S&P Nifty index moved down 0.2 percent to 6,048 points.
Among the top losers on Friday was blue chip stock Bharti Airtel Ltd that fell 3.6 percent to 953 rupees.
Banking stocks also dropped with ICICI Bank Ltd down 2.9 percent at 1,207 rupees and HDFC Bank off 1.7 percent at 1,729 rupees.
Software firms slipped with Satyam Computer Services Ltd dropping 2.4 percent to 411 rupees and Wipro Ltd off 1 percent at 495 rupees.
WELLINGTON
New Zealand stocks rose slightly as worries over problems in global credit markets, high domestic interest rates and a strong local currency kept investors on the sidelines. The benchmark NZX-50 gained 0.2 percent to 4,008.7.
IN THE AIR: While most companies said they were committed to North American operations, some added that production and costs would depend on the outcome of a US trade probe Leading local contract electronics makers Wistron Corp (緯創), Quanta Computer Inc (廣達), Inventec Corp (英業達) and Compal Electronics Inc (仁寶) are to maintain their North American expansion plans, despite Washington’s 20 percent tariff on Taiwanese goods. Wistron said it has long maintained a presence in the US, while distributing production across Taiwan, North America, Southeast Asia and Europe. The company is in talks with customers to align capacity with their site preferences, a company official told the Taipei Times by telephone on Friday. The company is still in talks with clients over who would bear the tariff costs, with the outcome pending further
NEGOTIATIONS: Semiconductors play an outsized role in Taiwan’s industrial and economic development and are a major driver of the Taiwan-US trade imbalance With US President Donald Trump threatening to impose tariffs on semiconductors, Taiwan is expected to face a significant challenge, as information and communications technology (ICT) products account for more than 70 percent of its exports to the US, Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) president Lien Hsien-ming (連賢明) said on Friday. Compared with other countries, semiconductors play a disproportionately large role in Taiwan’s industrial and economic development, Lien said. As the sixth-largest contributor to the US trade deficit, Taiwan recorded a US$73.9 billion trade surplus with the US last year — up from US$47.8 billion in 2023 — driven by strong
A proposed 100 percent tariff on chip imports announced by US President Donald Trump could shift more of Taiwan’s semiconductor production overseas, a Taiwan Institute of Economic Research (TIER) researcher said yesterday. Trump’s tariff policy will accelerate the global semiconductor industry’s pace to establish roots in the US, leading to higher supply chain costs and ultimately raising prices of consumer electronics and creating uncertainty for future market demand, Arisa Liu (劉佩真) at the institute’s Taiwan Industry Economics Database said in a telephone interview. Trump’s move signals his intention to "restore the glory of the US semiconductor industry," Liu noted, saying that
STILL UNCLEAR: Several aspects of the policy still need to be clarified, such as whether the exemptions would expand to related products, PwC Taiwan warned The TAIEX surged yesterday, led by gains in Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), after US President Donald Trump announced a sweeping 100 percent tariff on imported semiconductors — while exempting companies operating or building plants in the US, which includes TSMC. The benchmark index jumped 556.41 points, or 2.37 percent, to close at 24,003.77, breaching the 24,000-point level and hitting its highest close this year, Taiwan Stock Exchange (TWSE) data showed. TSMC rose NT$55, or 4.89 percent, to close at a record NT$1,180, as the company is already investing heavily in a multibillion-dollar plant in Arizona that led investors to assume
RSS