Asian stocks fell for a second week after a US jobs report missed economists’ estimates and concern grew that Europe’s crisis of government debt is spreading.
LG Electronics Inc, which counts North America as its biggest market, slumped 11 percent in Seoul this week after a government report showed US employers hired fewer workers last month than forecast. Nintendo Co, a Japanese game maker that gets 34 percent of its sales in Europe, retreated 8.1 percent after the euro weakened. Mitsui & Co, which holds a stake in an oil field operated by BP PLC where an oil spill is unfolding, tumbled 9.5 percent in Tokyo on concern earnings will suffer.
The MSCI Asia-Pacific Index slid 0.9 percent to 112.44 this week. The gauge plunged 3.3 percent on Monday, its steepest drop since March 30 last year after a Hungarian government official said the country’s economy was in a “very grave situation.”
“What I’m afraid of is that the volatility of the euro can trigger turmoil in the financial markets, prompting investors to reduce risk assets including stocks,” said Akio Yoshino, chief economist in Tokyo at Societe Generale Asset Management (Japan) Inc, which manages the equivalent of US$18 billion.
Japan’s Nikkei 225 Stock Average tumbled 2 percent this week even as a government report showed Japan’s GDP rose at an annualized 5 percent rate in the three months ended March 31, faster than the 4.2 percent projected by economists.
The S&P/ASX 200 Index gained 1.3 percent in Sydney, as gains in oil and copper prices lifted mining companies. The statistics bureau reported on Thursday that the jobless rate fell to 5.2 percent last month from 5.4 percent from the previous month.
The MSCI Asia-Pacific Index has slumped about 13 percent from its high this year on April 15 amid growing concern European countries in addition to Greece will struggle to curb their budget deficits or repay debt. The decline has dragged the average price of companies in the gauge to 14.4 times estimated earnings, compared with 20.1 times at the beginning of this year, according to data compiled by Bloomberg.
Taiwan’s TAIEX rose 117.72, or 1.63 percent, to 7,299.49 at the close of Taipei trading on Friday after a strong showing on Wall Street overnight as a euro rebound against the US dollar gave investors at home and abroad some relief from concerns over debt problems in the eurozone, according to dealers.
The TAIEX fell 0.6 percent this week.
The financial sector posted the largest gains, up 2.7 percent. Paper and pulp, and plastics and chemicals closed up 1.6 percent each, while machinery and electronics shares were 1.5 percent higher.
Other markets on Friday:
Manila closed 1.27 percent, or 40.95 points, higher from Thursday at 3,265.44.
Wellington rose 1.30 percent, or 38.94 points, from Thursday to 3,041.27.
Mumbai rose 0.84 percent, or 142.87 points, from Thursday to 17,064.95.
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PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
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