Asian shares fell, led by Sony Corp and BHP Billiton Ltd, on concern figures this week would show a drop in US home sales, signaling declining demand in the region's largest export market.
"Stocks globally take a fall every time there's more bad news on US housing-related or lending data because there's a threat that this may spill over into other parts of the economy," said Eric Betts, a strategist at Nomura Australia Ltd in Sydney. "This wouldn't be good for companies that depend on the US consumer."
rate increase?
Citic Securities Co (
Japan's Nikkei 225 Stock Average lost 0.56 percent to 18,087.48. Hong Kong's Hang Seng Index closed down 0.81 percent at 21,822.35. South Korea's KOSPI index fell 0.75 percent at 1,757.73, while Australia's key S&P/ASX 200 dropped 0.83 percent at 6,329.7.
Taiwan, Thailand and Pakistan were the only other markets in the region to rise.
US stocks dropped last Friday, sending the Standard & Poor's 500 Index to its worst week since early March. The near collapse of a Bear Stearns Cos hedge fund spurred speculation investors will have to write down the value of securities containing subprime mortgages.
decliners
Sony, the world's biggest maker of game consoles, fell 1.4 percent to ?6,460. BHP Billiton, the biggest mining company, lost 1.2 percent to A$34.94. Hynix Semiconductor Inc, the world's second-largest memory chipmaker, dropped 2.9 percent to 33,700 won. Citic Securities, China's biggest publicly traded brokerage, lost 4.6 percent to 55.55 yuan.
But China's defense-related stocks surged yesterday amid reports the government would push ahead with shareholding reforms that allow limited foreign investment in China's weapons makers.
China's Cabinet, or the State Council, the Commission of Science Technology & Industry for National Defense (COSTIND), the economic planning agency and the agency in charge of state assets agreed to push ahead with the reforms, COSTIND said in a statement on its Web site.
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Hafei Aviation Industry's (
Makers of strategically sensitive weapons involving state secrets are excluded from the reforms, the statement said.
It said weapons makers should set up modern corporate management systems, establish boards of directors and restructure their businesses, the statement said.
The rules "encourage investment by domestic companies and, under conditions, allow foreign capital to participate in the shareholding reforms," it said.
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