Most Asian stocks fell on Monday, as resurfacing worries about Europe's debt problems and concerns over slowing global growth spoiled investor mood.
Moody's warned about the creditworthiness of Italian banks last week and said it was mulling downgrades across the sector, sparking fresh concerns about eurozone financial stability ahead of a crucial Greek parliament vote on an austerity plan, expected on Wednesday. A failure to pass the austerity measures may result in the country defaulting on its sovereign debt obligations and could fuel upheaval in the euro zone.
Meanwhile, a move by global regulators to raise the capital adequacy requirements for the world's biggest lenders and a sell-off on Wall Street Friday also weighed on investor sentiment.
The major U.S. averages fell over a percent each to end near their worst levels of the session on Friday, as a negative reaction to quarterly results from Oracle and lingering concerns abut the financial situation in Europe overshadowed relatively upbeat economic data on durable goods orders for May.
Japan's Nikkei index dropped a percent and the broader Topix index slid 0.9 percent, as euro zone worries prompted investors to shed riskier assets ahead of the closely watched quarterly tankan survey of business sentiment.
Technology stocks bore the brunt of the selling, hurt by the yen's strength against the euro. Among the prominent decliners, Advantest and Sony ended down around 2 percent each. Among automakers, Suzuki Motor added 0.2 percent after the company agreed to expand its partnership with Italy's Fiat SpA, which will supply 1.6-liter diesel engines for cars to its Japanese counterpart. Honda Motor gained 0.7 percent, while Toyota fell 2.3 percent.
Banking stocks pared early gains to close little changed after reports released by Goldman Sachs and other brokerages suggested that the new international capital-adequacy requirements would be less stringent than previously estimated. Mitsubishi UFJ Financial Group closed unchanged, while Sumitomo Mitsui Financial Group edged up 0.2 percent.
China's Shanghai Composite rose 0.4 percent, while Hong Kong's Hang Seng was last down half a percent. While it would be difficult to cap inflation at 4 percent target this year, it can be kept below 5 percent, Hong Kong based Cable TV quoted Premier Wen Jiabao as saying. The increase in consumer prices can be maintained under 5 percent, provided the economy grows in the range of 8 to 9 percent, Wen said. China's financial situation will be the best in the world, he added.
The Australian market fell sharply on lingering concerns over U.S. growth and Europe's debt situation. The benchmark S&P/ASX 200 shed a percent, while the broader All Ordinaries index dropped 1.1 percent. The Australian dollar fell to its lowest levels in more than two months as investors withdrew from the market ahead of a pivotal parliamentary vote in Athens.
Big miner BHP Billiton slipped 0.3 percent, rival Rio Tinto lost 0.8 percent and Fortescue ended down 2.1 percent. Commonwealth led financial stocks lower, losing 1.3 percent, while ANZ lost lost 1.1 percent, NAB declined 0.7 percent and Westpac dropped 0.4 percent. Oil and gas producer Woodside and Oil Search eased about 0.6 percent, while Santos tumbled 2.5 percent.
South Korea's Kospi average closed about a percent lower, dragged down by large-cap tech firms and steelmakers on foreign fund selling. Memory chip maker Samsung Electronics lost 2 percent and Hynix Semiconductor plunged 4.3 percent, taking cues from a decline in the U.S. Philadelphia semiconductor index. Crude refiners lost ground, with S-Oil losing 2.6 percent and SK Innovation easing half a percent as uncertainty over Greece fueled demand concerns.
Korea Express reversed early gains to end 4.7 percent lower ahead of the final round of bidding for a controlling stake in the logistics firm. Kia Motor edged up 0.3 percent and Hyundai Motor added 0.9 percent after executives of General Motors and Ford Motor last week predicted jump in auto sales for June over May.
New Zealand's benchmark NZX-50 slid half a percent to its lowest level in four months, with Methven leading the decliners after the company said conditions in its three main markets, Australia, New Zealand and the U.K., would remain challenging in the near term. Shares of the tapware manufacturer slumped 4 percent. Insurer Tower lost 2.5 percent after global ratings agency Standard and Poor's said that reinsurance costs would triple for some local insurance companies as a result of the Christchurch earthquakes.
Retailer Warehouse Group bucked the downward trend to end 2.9 percent higher after Grant O'Brien, chief executive designate of Australian retail group Woolworths, reportedly said the company is still interested in growing its stake in The Warehouse.
India's Sensex was last trading up about a percent, extending last week's 2 percent rally, as a further drop in crude prices and the government's decision on Friday to hike fuel prices quite steeply to lower its subsidy burden cheered investors. Oil prices fell to near $90 a barrel in Asian trading Monday, as a stronger U.S. dollar and concerns over slowing global growth reduced the investment appeal of the commodity.
Elsewhere, Indonesia's Jakarta Composite index was down 0.9 percent, Malaysia's KLSE slipped 0.2 percent, Singapore's Straits Times was down half a percent and the Taiwan's Weighted eased 0.4 percent.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.