Asian stocks fell to a two-month low this week, led by exporters such as Sony Corp and Hon Hai Precision Industry Co Ltd (鴻海精密), on concern widening credit losses in the US and record oil prices will slow global growth.
Posco led the slide among steelmakers and transportation stocks such as Qantas Airways Ltd and China Cosco Holdings Co fell after oil prices climbed to a record US$111 a barrel.
"The weakness in the US economy, coupled with high commodity prices, is combining to eat into margins for many Asian companies," said Ivan Tham, who helps oversee the equivalent of US$5 billion in Asian assets at City of London Investment in Singapore.
The MSCI Asia Pacific Index slid 2.6 percent this week, extending last week's 5.4 percent slump and this year's loss to 14 percent. Japan's Nikkei 225 Index dropped 4.2 percent, falling to its lowest since Aug. 10, 2005.
China's CSI 300 Index fell 10 percent this week, its biggest drop on record and the steepest loss in the region, on concern the government will raise interest rates to contain inflation, slowing growth in the world's fastest growing major economy.
A regional measure that includes steel and commodities companies dropped 4.9 percent and an index that includes airlines and shippers declined 4.2 percent, the worst performers among the MSCI Asia Pacific's 10 industry groups.
"There's fear in the markets," said David Ng, who helps manage about US$1 billion at Hwang-DBS Asset Management Sdn in Kuala Lumpur. "It's a case of when it rains, it pours, and it's pouring. What the market needs to know is how many more Carlyles are there."
Hon Hai, the world's largest contract manufacturer of consumer electronics, slumped 7.7 percent to NT$174.50, its second-biggest weekly decline this year, on concern that widening subprime losses will cool economic growth.
TAIPEI
Taiwanese share prices closed 0.6 percent lower, dealers said.
The weighted index closed down 49.6 points at 8,161.39 on turnover of NT$109.03 billion (US$3.55 billion).
Michael On (
"Sluggish regional markets in the morning reminded investors of global economic concerns amid high energy costs," On said.
With presidential polls being held next week, many investors also cut their positions on fears over political uncertainty.
TOKYO
Japanese shares closed down 1.54 percent at the lowest level for two years and seven months on worries about a stronger yen and the weakness of the US economy, dealers said.
The benchmark Nikkei-225 index dropped 191.84 points to 12,241.60. The broader TOPIX index of all first-section shares ended down 22.64 points or 1.86 percent at 1,193.23.
HONG KONG
Hong Kong share prices closed 0.29 percent lower, dealers said.
The Hang Seng index closed down 64.53 points at 22,237.11.
For the week the Hang Seng is down 264.22 points or 1.17 percent, while for the year to date it is down 5,575.54 points or 20 percent.
SYDNEY
Australian shares closed 1.4 percent higher, dealers said.
The benchmark S&P/ASX 200 closed up 71 points at 5,206.9, while the broader All Ordinaries rose 72.8 points to 5,288.5.
SHANGHAI
Chinese share prices closed 0.22 percent lower, dealers said.
The benchmark Shanghai Composite index, which covers both A and B shares, fell 8.58 points to 3,962.67.
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