Asia Markets Report

Asian Markets Slump On Global Economic Concerns

The markets across Asia ended the last trading session of the week in negative territory, taking cues from Wall Street where the major averages witnessed sell-off in late trading session amid concerns about the debt crisis in Europe, notwithstanding positive economic data on jobs. Most of the traders preferred to offload shares and move to sidelines awaiting more cues on developments in Europe and economic data related to retail sales and consumer sentiment later in the U.S.

In Japan, the benchmark Nikkei 225 Index closed down 158.04 points, or 1.5%, to 10,463, while the broader Topix index of all First Section issues fell 11.45 points, or 1.2%, to 936.

As many as 29 sectors of the 33 sectors in the index ended in negative territory as traders turned jittery after Sony Corp. provided a weaker-than-expected forecast for the year that led to sell-off in shares. Weak cues from other markets and continued worries on Eurozone recovery also hampered market sentiment as traders preferred to unwind positions ahead of weekend and move to sidelines awaitng more cues about global economy. Sony Corp. shares plunged 6.79%. .

In Australia, the benchmark S&P/ASX200 Index declined 41.70 points, or 0.90% to 4,611, while theAll-Ordinaries Index ended at 4,643, representing a loss of 36.50 points, or 0.78%.

Light sweet crude oil futures for June delivery ended at $73.72 a barrel in electronic trading, down $0.56 per barrel from previous close at $74.40 a barrel in New York on Thursday.


Banks led the declines in the market on increasing concerns about the debt crisis in Europe. Weak closing for banks on Wall Street in the previous session impacted market sentiment. ANZ Bank declined 2.06%, Commonwealth Bank of Australia lost 2.24%, National Australia Bank also fell 2.24% and Westpac Banking slipped 1.54%. Investment banker Macquarie Group was down by 0.72%.

Mixed trading was witnessed among gold stocks as traders resorted to profit taking following recent gains. Lihir Gold shed 0.24%, while Newcrest Mining managed to end in positive territory with a gain of 0.03%.

Oil stocks ended in negative territory on lower crude oil prices in the international market. Woodside Petroleum edged down 0.02%, Santos lost 0.23%, Origin Energy fell 2.54% and Oil Search slipped 0.53%.

Mixed trading was witnessed among Mining and metal stocks. BHP Billiton shed 0.46%, Rio Tintoslipped 0.42%, Fortescue Metals fell 0.92%, Gindalbie Metals plunged 8.62%, and Mincor Resources lost 1.43%. However, Iluka Resources gained 2.51%, Macarthur Coal advanced 1.43%,Murchison Metals rose 3.60% and Oz Minerals added 0.93%.

Mixed trading was also witnessed among retailers. David Jones fell 1.12%, JB Hi-Fi Ltd shed 1.28%, Reject Shop slipped 0.62%, and Woolworths declined 0.69%. However, Harvey Normanended in positive territory with a gain of 0.58%, Myer Holdings added 0.32% and Wesfarmers edged up 0.20%.

In Hong Kong, the benchmark Hang Sang Index ended in negative territory with a loss of 277.03 points, or 1.36%, at 20,145, on weak cues from Wall Street that ended in negative territory in the previous session on late sell-off. Weak trading across other markets in the region on increasing concerns about sustaining global economic recovery also impacted market sentiment.

Profit taking amid a fresh sell-off in European stocks on concerns that Europe's austerity measures may slow global economic growth dragged the Indian market sharply lower on Friday. Despite some easing, April inflation stood well above the RBI's comfort zone, adding pressure on the central bank to deliver more rate hikes in the coming months, albeit in a "calibrated" manner. The benchmark 30-share Sensex ended down 271 points or 1.57% below the 17,000 mark, at 16,995, with 26 of its components ending in the red. The 50-share Nifty also fell by 85 points or 1.65% to 5,093.

Among the other major markets open for trading, China's Shanghai Composite Index slipped 13.88 points, or 0.51%, to close at 2,697, and Singapore's Strait Times Index ended in negative territory with a loss of 12.71 points, or 0.44%, at 2,855. However, Taiwan's Weighted Index managed to end flat with a gain of 1.56 points or 0.02% at 7,772 and Indonesia's Jakarta Composite Index added 10.76 points, or 0.38% at 2,858.