Stocks plunged across the Asia-Pacific region Monday, dragging down the MSCI Asia Index by over 3%, the most since March 2009, amid concerns that slower than expected hiring in the U.S and mounting concerns over Hungary's finances will hinder the global economic recovery.
A combination of declining commodity prices and a weaker euro due to a lack of clarity on the fiscal situation in the eurozone region also dampened investor sentiment. The euro touched a fresh four-year low against the dollar Monday on fears that the Greece-triggered eurozone financial crisis could tip the continental economies into a double-dip recession.
Japan's key Nikkei 225 average slumped 3.84% to 9,521, its biggest fall of 2010, roiled by heightened worries about the health and stability of the global financial system. The broader Topix index of all First Section issues on the Tokyo Stock Exchange closed at 859, down 31 points or 3.48%.
A stronger yen weighed on exporters, especially those companies which have high exposure to Europe. Automaker Toyota Motor Corp fell over 4%, digital camera maker Canon Inc plummeted 5.28%, semiconductor equipment maker Tokyo Electron slumped 5.56% and chip-tester maker Advantest Corp fell about 5%.
Hitachi plunged 7% on reports that a GBP 7.5 billion order for 1,400 train carriages placed with the company may be canceled as Britain's new government tries to cut spending.
However, Sumco Corp bucked the negative trend and rose 2.24% after the silicon wafer maker reported a lower-than-expected 4.8 billion yen group net loss for the February-April period.
China's benchmark Shanghai Composite index, which covers both A and B shares, ended 42 points or 1.64% lower at 2,512, its lowest since April 30,2009, on concerns that China's economic rebound might slow due to the tightening in bank lending and mortgage rules. Hong Kong's benchmark Hang Seng index closed at 19,378, down 402 points or 2.03%.
South Korea's benchmark KOSPI touched a low of 1,619 before recouping some of its loss and finishing 1.57% lower at 1,638, with financials such as KB Financial Group, oil refiner SK energy and steelmaker POSCO leading the decliners.
However, Kia Motors bucked the broader downward trend and ended up about 3%, helped by robust sales of its new models. Memory-chip maker Hynix Semiconductor rose by a percent, extending its gain for a third straight session.
The local currency lost about 2.8% against the dollar on contagion fears over the eurozone debt crisis. While foreigners sold shares worth KRW268.2 billion on a net basis, domestic financial institutions and retail investors bought shares worth KRW 104.1 billion and KRW109.4 billion, respectively.
The Australian market tumbled after a weaker- than-expected U.S. jobs report pointed to a slowdown in the momentum of the economic recovery. While the benchmark S&P/ASX 200 closed at 4,326, down 123 points or 2.78%, the broader All Ordinaries index slumped 122 points or 2.72% to 4,351.
Selling was broad-based and was led by banks. ANZ, National Australian Bank and Commonwealth Bank fell about 3% each and Macquarie Group plunged 4.25%.
Big miner BHP Billiton lost 3.51% and its rival Rio Tinto ended down 3%. In the energy sector, Wooside Petroleum declined 2.77% and Santos shed 3.48%. Construction firm Leighton Holdings fell 3.40%, transport logistics company Brambles slumped 5%, media firm News Corp closed down 3.16% and Fairfax Media plummeted 4.68%.
The New Zealand market was closed on Monday in honor of the Queen's birthday.
Elsewhere, Singapore's Straits Times index, Taiwan's Taiwan weighted index and Indonesia's Jakarta Composite fell between 1.5% and 2.7% as growth worries re-surfaced. India's benchmark 30-share Sensex was last trading lower, although off the day's low at 16,810, down about 310 points or 1.80% due to eurozone woes.
On Wall Street, stocks saw significant losses to close out the week on Friday, as worries regarding the escalating European debt crisis, the prospects of growth in the U.S. labor market and the oil spill in the Gulf of Mexico generated significant selling pressure. All the major averages lost over 3% each, with the Dow closing below the 10,000 level.
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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.