Asia Market Report (Tuesday, November 24,2009)

Asia: Banks take a pounding

Japan’s stock market fell for the fifth day in a row on Tuesday, closing at its lowest in four months, as fears of further fundraising sent the banks sharply lower.

Sumitomo Mitsui Financial Group and Mizuho Financial Group were in trouble just a week after Mitsubishi UFJ Financial confirmed plans to issue about 1 trillion yen ($11bn) in new shares.

There were also losses for exporters like Sony and Canon, down on a strengthening yen, while fears about possible bankruptcy had Japan Airlines in the red.

The Nikkei’s final level of 9,401, down 96 points, or 1%, was its lowest finish since mid-July.

Things were worse in Hong Kong, where the leading Hang Seng index dropped 348 points, or 1.5%, to 22,423. That was its largest slide in three weeks.

Banks were unloved on continuing fears that China will tighten monetary policy.

HSBC, which accounts for the largest weighting for the Hang Seng, attracted attention from sellers, down 0.8%.

There were also losses for Bank of China after admitting it was looking at how to raise more money, although a cash call is not thought to be imminent.

Indices

Index	Value	% Change
Nikkei 225	9,401.58	-1.01%
Hang Seng	22,423.14	-1.53%
Straits Times	2,779.98	-0.64%