The markets across Asia plunged sharply on Friday amid concerns about global economic recovery. The weak closing on Wall Street and the European markets in the previous session amid concerns about sovereign credit worries in Greece, Spain and Portugal and weaker than expected weekly jobless claims weighed on sentiment.
In Japan, the benchmark Nikkei 225 Index at 10,057.09, down 298.89 points or 2.89%,. while the broader Topix index of all First Section issues lost 19.31 points, or 2.12%, to 892.
On the economic front, a preliminary report released by the Cabinet Office revealed that Japan's leading index strengthened for the tenth consecutive month in December at 94, higher than the reading of 91 reported for November. Analysts expected the index at 93.5 for the month. The report further revealed that as of January 31, foreign currency reserves amounted to $1.001 trillion, while reserves with the International Monetary Fund stood at $4.27 billion. Gold reserves totaled $26.53 billion, while SDRs were worth $20.79 billion.
Sharp decline in US and European markets in the previous session following weaker than expected jobless claims in the US and sovereign debt concerns in Greece dragged the market sharply lower. The strengthening of the local currency, Japanese Yen, against the dollar as traders shunned risk aversion also impacted market sentiment.
Toyota Motor, which had been declining in the past few trading session amid concerns about recall of defective cars, was among the gainers, having added 1.22%. Other automakers ended in negative territory. Honda Motor fell 3.73%, Isuzu Motor lost 4.88%, Mazda Motor declined 4.90%, Mitsubishi Motor shed 3.15% and Nissan Motor backpedaled 3.93%.
Trading companies also ended in negative territory. Mitsubishi Corp. declined 3.29%, Mitsui & Co., plunged 4.58%, Sumitomo Corp. lost 4.05%, Toyota Tsusho Corp. fell 2.77% and Marubeni Corp. shed 3.63%.
Bank stocks also ended weaker. Resona Holdings plunged 5.51%, Sumitomo Mitsui Financial lost 2.06%, Mitsubishi UFJ Financial shed 1.30% and Mizuho Financial declined 1.71%.
Shipping stocks ended sharply lower amid concerns about economic recovery. Kawasaki Kisen Kaisha lost 2.95%, Mitsui OSK Lines plunged 4.42% and Nippon Yusen fell 2.43%.
Exporters ended weaker on stronger yen. Canon Inc. declined 3.53%, NEC Corp lost 2.86% and Sharp Corp., edged down 0.37%.
In Australia, the benchmark S&P/ASX 200 Index plunged 107.50 points, or 2.33% to close at 4,514, while the All-Ordinaries Index ended at 4,533, representing a steep loss of 111.60 points, or 2.40%.
On the economic front, the Reserve Bank of Australia, releasing the quarterly Monetary Policy Statement, predicted modest increases in inflation and GDP in the country, apart from slight moderation in joblessness. The central bank stated that it would resort to more interest rate hikes if any or all of its forecasts materialize. The apex bank expects inflation to ease from 3.25% through 2009 to 3% by middle of 2010 and to 2.5% by the end of the year. RBA earlier projected inflation rate of 2.25% for 2010. The bank further noted that it expects inflation to rise to 2.75% by the end of 2011 and into 2012.
In a separate statement, the Reserve Bank of Australia stated that the country's official reserve assets totaled A$46.58 billion in January, slightly higher than A$46.51 billion reported for December. The bank further stated that the value of official reserve assets increased by A$69 million primarily due to earnings. Of the total official reserve assets of the country, foreign exchange stood at A$36.84 billion, larger than the A$36.79 billion in December. Special Drawing Rights increased to A$5.41 billion from A$5.39 billion in the prior month. Reserves with IMF came in at A$1.21 billion and gold reserves totaled A$3.11 billion.
Metals and mining stocks declined sharply on lower commodity prices in the international market. BHP Billiton lost 3.51%, Rio Tinto plunged 5.02%, Fortescue Metals fell 5.45%, Gindalbie Metals shed 4.74%, Macarthur Coal declined 5.55%, Minara Resources backpedaled 4.58% and Oz Minerals slumped 6.25%.
Gold stocks slumped after bullion prices declined sharply in the international market. Lihir Gold shed 4.20% and Newcrest Mining fell 2.56%.
Oil stocks also ended in negative territory. Woodside Petroleum declined 3.89%, Santos fell 4.07%, Oil Search plunged 5.32% and Origin Energy slipped 1.34%.
Banks also ended sharply lower amid global economic concerns. ANZ Bank fell 2.43%, Commonwealth Bank of Australia edged down 0.53%, National Australia Bank fell 2.16% and Westpac Banking lost 2.25%. Investment banker Macquarie Group plunged 5.60%.
Healthcare stocks bucked the weak sentiment in the market. CSL Ltd gained 1.38% and Sonic Healthcare advanced 1.05%.
In Hong Kong, the Hang Seng Index plunged 3.33% or 676.56 points, to close at 19,665, taking cues from Wall Street and other markets in the region amid increasing concerns that the global economic recovery might get derailed. Weaker than expected weekly jobless claims in the world's largest economy, the US, and the increasing sovereign credit concerns dragged European and US markets sharply lower. Commodity prices also slumped in the international market. As many as 41 of the 42 components in the index ended in negative territory.
In South Korea, the KOSPI Index slumped 3.05% or 49.30 points, to close sharply lower at 1,567, as traders resorted to sell-off of shares across the board amid increasing concerns about the strength of global economic recovery. Sovereign credit concerns in European markets such as Greece, Spain and Portugal and weaker than expected weekly jobless claims triggered panic in the European and US markets dragging the oil and gold prices lower. Weak cues from other markets also impacted negative sentiment in the market.
The Indian market extended the previous session's sharp loss Friday, tracking a global sell-off amid concerns about the pace of job losses in the United States and debt problems in Europe. Closer home, rising inflationary pressures, a burgeoning fiscal deficit and continued selling by foreign investors also weighed on the market. Meanwhile, positive news flow such as an upgrade of India's FY11 GDP growth by Morgan Stanley and full subscription received for NTPC's follow-on public issue on the last day of the issue failed to lift sentiment. The benchmark Sensex fell as much as 500 points to 15,725 today before finishing at 15,791, down 434 points or 2.68% and the Nifty fell 127 points or 2.61% to 4,719.
Among other major markets open for trading in the region, Indonesia's Jakarta Composite Index declined 74.24 points, or 2.86% to close at 2,519, Taiwan's Weighted Index plunged 324.21 points, or 4.30% to close at 7,218, Strait Times Index in Singapore lost 61.42 points, or 2.24%, to close at 2,684 and China's Shanghai Composite Index fell 55.91 points, or 1.87%, to close at 2939.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.