Asian stocks declined for the fifth week in six, driving the benchmark index to the lowest level since October 2006, on concern the weakening global economy will erode profits.
CNOOC Ltd (中國海洋石油), China’s largest offshore oil producer, tumbled after crude headed for its worst week in three years. Wipro Ltd, India’s third-largest software-services provider, slumped after saying customers cut spending. Mitsubishi UFJ Financial Group Inc fell in Tokyo and Cathay Financial Holding Co (國泰金控) dropped in Taipei after they disclosed holdings of debt at embattled US mortgage lenders Fannie Mae and Freddie Mac.
The MSCI Asia-Pacific Index lost 3.3 percent to 129.16 as all 10 of its industry groups declined. The benchmark gauge has retreated 18 percent this year as more than US$435 billion in credit-related losses prolong the global economy’s slump and rising commodity prices stoke inflation.
Cathay Financial, Taiwan’s biggest publicly traded financial services firm, declined 9.1 percent to NT$60. The Taipei-based company revealed on Tuesday it has NT$200 billion (US$6.6 billion) in debt linked to the US mortgage lenders.
TAIPEI
Taiwanese share prices are expected to extend losses next week amid fears that Wall Street will suffer volatility during the current corporate results reporting period, dealers said on Friday.
They said investors would be watching Citigroup later on Friday after Merrill Lynch disappointed the market.
For the week to Friday, the weighted index closed down 429.44 points or 5.93 percent at 6,815.32 after a 0.23 percent increase a week earlier.
Average daily turnover stood at NT$105.63 billion (US$3.47 billion), compared with NT$100.05 billion the previous week.
“After Merrill Lynch’s disappointing results, investors have turned very anxious about more possible bad news from US financial giants. Few can be sure when and how the US mortgage market will recover,” Concord Securities (康和證券) analyst Allen Lin said.
Apart from financial firms, other market heavyweights such as Apple and Yahoo, will announce their quarterly earnings next week.
“With high correlation with US high-tech stocks in valuations, Taiwan’s bellwether electronic sector may attract much market attention next week,” Lin said.
He said he expects the local bourse will move further downward until strong technical support surfaces at around key 6,500 points.
TOKYO
Japanese share prices on Friday closed 0.65 percent down from Thursday, dealers said.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index lost 84.25 points to close at 12,803.70. The broader TOPIX index of all first-section shares ended down 11.22 points or 0.89 percent at 1,252.43.
HONG KONG
Hong Kong share prices closed up 0.64 percent, dealers said.
The benchmark Hang Seng Index rose 139.47 points to 21,874.19.
“This is not a dead cat bounce. I believe such gains are sustainable as global inflation takes a breather from the receding oil prices,” said Francis Lun, a general manager with Fulbright Securities.
SYDNEY
Australian stocks closed down 1.2 percent, dealers said.
The benchmark S&P/ASX 200 index dropped 60.6 points to 4,840.4, while the broader All Ordinaries slipped 62.1 points to 4,915.3.
SHANGHAI
Chinese share prices jumped 3.49 percent, dealers said.
The benchmark Shanghai Composite Index, which covers both A and B shares, closed 93.59 points higher at 2,778.37.
SEOUL
South Korean share prices closed one percent lower, dealers said.
The KOSPI index ended off 15.57 points at 1,509.99.
SINGAPORE
Singapore share prices closed 0.57 percent weaker, dealers said.
The blue-chip Straits Times Index finished 16.37 points lower at 2,847.73.
KUALA LUMPUR
Malaysian share prices ended 1.4 percent lower, dealers said.
The Kuala Lumpur Composite Index lost 16.13 points to 1,105.04.
MANILA
Philippine share prices closed 0.2 percent lower, dealers said.
The composite index shed 4.10 points to 2,389.52.
MUMBAI
Indian shares closed 3.99 percent higher, dealers said. The benchmark Mumbai 30-share SENSEX index rose 523.55 points to 13,635.4.
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