Asian stocks closed lower on Friday, with sentiment hit by overnight losses on Wall Street and a series of much weaker-than-expected Japanese economic data, dealers said.
They said a sharp downward revision to third quarter growth figures and disappointing core private sector machinery orders raised fresh doubts about Japan's economic recovery and made for additionally cautious trade ahead of a key US employment report later in the day.
The expectation is that the US jobs report will show the US economy slowing in a steady, controlled fashion, allowing the markets to adjust gradually.
PHOTO: AP
That means, however, that any unpleasant surprise could prove a nasty shock for Wall Street and then global markets.
At current record or multi-year highs, there is plenty of room for profit-taking, making investors perhaps more susceptible to bad news rather than good so the risks are clear.
South Korea, down 1.41 percent, was among the worst performers among the major bourses, with Sydney off 0.72 percent after an overnight sell-off in the metals hit the top mining companies.
The Chinese markets ran into very heavy profit-taking, with the Shanghai Composite Index down nearly 3 percent on rumors the central bank was ready to hike interest rates again in order to keep liquidity in check.
TAIPEI
Share prices closed 0.65 percent lower as caution gripped the market following Wall Street's second consecutive overnight fall and ahead of yesterday's key mayoral elections for Taipei and Kaohsiung, dealers said.
The weighted index shed 50.22 points at 7,636.30, off a low of 7,658.04 and a high of 7,601.30, on turnover of US$105.63 billion.
Declines led gains 655 to 540, with 216 stocks unchanged.
Dealers said caution helped fuel profit-taking while lackluster sales figures posted by some companies for last month dampened bargain-hunting interest ahead of yesterday's polls.
"Pre-election caution should be the factor behind today's falls," Beyond Asset Management Co president Michael On said. "Taking their cue from the New York market's decline, [investors]continued to lock in profits here while corporate prospects during the slow season remained a concern."
He said December is usually a slow month for most companies.
However, On said that the outcome of the elections may only have a short-term effect on the bourse and that going forward, the market's direction will be more influenced by economic and corporate fundamentals.
TOKYO
Share prices closed down 0.34 percent as investors reacted nervously to a smaller-than-expected rise in local machinery orders and a downgrade to third-quarter growth, dealers said.
They said the market was also on edge ahead of key US jobs data due out later on Friday which were expected to set the near term tone for Wall Street.
The Tokyo Stock Exchange's benchmark Nikkei-225 fell 55.54 points to 16,417.82. The broader TOPIX index of all first-section companies lost 6.43 points or 0.40 percent to 1,616.34.
Decline outnumbered gainers 1,011 to 572, with 125 stocks flat.
Volume was 2.39 billion shares, compared to 1.57 billion on Thursday, with the special quotation for the settlement of this month's futures and options contract inflating turnover.
Before the opening bell, the government said real GDP in the third quarter to September grew by a revised 0.2 percent from the previous quarter and was up by an annualized rate of 0.8 pct.
Its preliminary estimate, which was released last month, had put quarter-on-quarter GDP growth at 0.5 percent for an annualized rate of 2 percent.
An hour before trading closed, official figures showed that private-sector core machinery orders, a key gauge of corporate capital spending, rose by a smaller-than-expected 2.8 percent in October from September.
Market players also refrained from active trade on caution ahead of US non-farm payrolls data for last month due out later in the day.
SEOUL
Share prices closed 1.41 percent lower, falling back through the key 1,400 points level amid concern the won's rise could hit the key exporters, dealers said.
They said next week's triple witching was also a major drag, with 4 trillion won (US$ 4.3 billion)worth of options and futures contracts coming up for settlement.
The KOSPI index shed 19.87 points at 1,390.43, off a low of 1,386.26 and a high of 1,400.98.
HONG KONG
Share prices closed 0.55 percent lower on continued profit-taking as investors stayed cautious ahead of key US employment data later in the day and the US Federal Reserve meeting next week, dealers said.
New listings China Communications Services and Zhaojin Mining, however, posted strong gains.
The key Hang Seng index closed down 103.0 points at 18,739.99, off a low of 18,666.89 and high of 18,799.25.
SHANGHAI
Share prices closed sharply lower, falling 2.92 percent as market talk of a possible hike in interest rates sparked a heavy round of profit-taking on the recent sustained gains, dealers said.
They said there had been signs of institutional profit-taking on Thursday as turnover continued very heavy and this may have picked up after speculation the central bank wanted to trim back liquidity again.
Dealers said the downturn was most likely simply an overdue correction after the market's sharp advance this year and further profit-taking would be seen this week.
The Shanghai A-share Index tumbled 66.19 points to 2,200.54 and the Shenzhen A-share Index was down 17.57 points or 3.35 percent at 506.35.
The benchmark Shanghai Composite Index, which covers both A- and B-shares, closed down 63.11 points or 2.93 percent at 2,093.64.
SYDNEY
Share prices closed 0.72 percent lower on the back of an overnight fall in base metal prices which put the key mining sector under pressure, dealers said.
The S and P/ASX 200 index dropped 39.4 points to end the day at 5,425.8 while the broader All Ordinaries slipped 35.2 points to 5,415.4. Turnover was 1.51 billion shares.
SINGAPORE
Shares closed 1.3 percent lower as the market consolidated before the winning bidder for the city-state's second casino license was announced, dealers said.
The Straits Times Index shed 36.66 points at 2,865.14 after touching an intraday record high of 2,914.72 earlier in the session.
KUALA LUMPUR
Share prices closed flat in cautious trade ahead of the release of key US jobs data, with weaker regional markets adding to the note of caution, dealers said.
They said that sentiment was expected to remain subdued next week as local and foreign funds lock in profits after the market's recent gains.
The Kuala Lumpur Composite Index edged up 0.33 points to 1,098.59 on volume of 1.21 billion shares.
BANGKOK
Share prices closed 0.62 percent lower, in line with a slump in the regional markets, dealers said.
The Stock Exchange of Thailand (SET) composite index fell 4.60 points to 740.94 and the bluechip SET 50 index lost 4.08 points to 517.95.
JAKARTA
Share prices closed 0.38 percent lower on profit-taking in select large-cap stocks led by Telkom and Perusahaan Gas Negara following this week's strong rally, dealers said.
The composite index shed 6.831 points at 1,775.285 on volume of 3.25 billion shares.
MUMBAI
Share prices closed 1.23 percent lower, snapping five straight days of record highs as funds locked in gains after the market met strong resistance at the 14,000-point level, dealers said.
Further corrections may be seen this week, dealers added. The benchmark Sensex had gained 7.2 percent since Nov. 1.
The 30-share Mumbai stock exchange index fell 172.54 points to 13,799.49 from its record close of 13,972.03 on Thursday.
The Sensex had hit an all-time-peak of 14,035.30 intraday Wednesday, led by expectations of sustained economic growth and profit gains for leading companies.
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