Asia Market Report

Asia: Nikkei hit as confidence tumbles

Date: Monday 17 May 2010
The Nikkei lost 2.17% on Monday with exporters such as Canon hit by fears that European austerity measures will stifle growth in the region.

Sony slumped 4.6% in Tokyo on concern about weaker exports to the region. TDK slumped 4.1% to 5,860 yen.

The stronger yen against the euro also put pressure on exporters. The euro tumbled to a four year low against the dollar on Monday as traders turned to the safe haven qualities of the US currency and the Japanese yen.

Commodities moved out of favour as crude futures fell sharply. Shares in Mitsubishi Corp retreated 3.5%, Mitsui & Co lost 3.8% while Inpex declined 4.1%.

In economic news Japanese machinery orders rose 5.4% in March from February, according to the latest figures from the Cabinet Office in Tokyo.

The Nikkei 225 index closed down 226 points at 10,236.

The Hang Seng fell 2.14% on concern about Europe’s debt problems and fears that China will tighten money supply.

Shares on the move included Foxconn International which slumped 7.7% after JP Morgan slashed its rating on mobile phone group to “underweight.”

Esprit, which counts Europe as its biggest export market, fell 7%.

A slump in metal prices took its toll on Aluminum Corp of China, which fell 5.2% in Hong Kong.

The Hang Seng index closed 441 points lower at 19,704.