Asian stocks fall, Tokyo plunges 3.72%
A man walks by outside a securities firm in Tokyo Monday, June 3, 2013. Uncertainty about the U.S. Federal Reserve’s next course of action and a sharp, sudden plunge on Wall Street sent Asian stock markets lower Monday as Japan’s Nikkei 225 index lost 3 percent to 13,359.16, echoing U.S. stock market losses Friday. (AP Photo/Junji Kurokawa)
HONG KONG—Asian stocks fell Monday, with Tokyo plunging 3.72 percent to a six-week low after downbeat Chinese manufacturing data and a sharp drop on Wall Street last week.
Eyes were also turning toward a series of key US economic statistics due later in the week, and a policy meeting of the European Central Bank (ECB).
Tokyo, which fell more than five percent last week, was down 512.72 points at 13,261.82, continuing volatile trading that has seen a series of sharp drops.
“Japanese shares are still in the middle of adjustment following the recent surge,” Kenzaburo Suwa, strategist with Okasan Securities, told AFP.
“The market is trying to find a short-term bottom, which has yet to be seen.”
Some analysts have been predicting a sharp correction in the Nikkei, which had surged about 80 percent over the past six months to climb above the 15,000 level before the recent downturn.
Seoul fell 0.57 percent, or 11.48 points, to close at 1,989.57, and Sydney dropped 0.78 percent, or 38.3 points, to end at 4,888.3.
Shanghai ended flat, edging down 0.06 percent, or 1.34 points, to 2,299.25, and Hong Kong dropped 0.49 percent, or 109.97 points, to 22,282.19.
The falls came after conflicting manufacturing data from China, the world’s second-largest economy, with HSBC saying Monday that activity fell to an eight-month low in May.
The British banking giant’s final purchasing managers’ index (PMI) reading for May came in at 49.2, worse than the preliminary 49.6 announced on May 23.
A reading below 50 indicates contraction in the sector.
The result was in sharp contrast to the Chinese government’s PMI result for May, which came in at 50.8, better than April’s 50.6, the National Bureau of Statistics said Saturday.
European stock markets opened lower Monday, with London’s FTSE 100 index of leading shares dropping 0.51 percent to stand at 6,549.60.
At a financial conference in Shanghai, European Central Bank chief Mario Draghi earlier predicted a “very gradual recovery” in the crisis-hit eurozone starting later this year despite lingering “vulnerabilities.”
The bank is due to announce updated eurozone forecasts for growth and inflation later in the week, as it meets to discuss options for stimulating the recession-hit economy following a recent cut in interest rates.
“The economic situation in the euro area remains challenging but there are a few signs of a possible stabilization, and our baseline scenario continues to be one of a very gradual recovery starting in the latter part of this year,” Draghi said.
US stocks tumbled Friday, accelerating their losses after a flurry of mixed indicators sparked volatile trade, with consumer spending down but shoppers’ confidence climbing.
The Dow Jones Industrial Average shed 1.36 percent to 15,115.57, with the “fear index” measuring market volatility finishing at its highest level since mid-April.
The Commerce Department reported consumer spending dropped by 0.2 percent in April, but there was also a jump in the Chicago area PMI index and a positive outlook in the University of Michigan consumer confidence barometer.
US manufacturing data is due out later in the day, and a stronger-than-forecast reading could stoke fears the Federal Reserve will soon taper off massive stimulus measures.
Another indicator of health in the world’s largest economy, US non-farm payrolls data for May, is due out Friday.
On currency markets Monday, the dollar was down against the Japanese currency, fetching 100.12 yen against 100.37 yen in New York late Friday.
The euro bought $1.3039 and 130.50 yen against $1.2996 and 130.44 yen.
Oil was down in Asian trade, with New York’s main contract, West Texas Intermediate light sweet crude for delivery in July, dropping 29 cents to $91.68 a barrel. Brent North Sea crude for July delivery shed 29 cents to $100.10.
Gold was at $1,394.80 at 1120 GMT from $1,411.70 late Friday.
In other markets:
— Manila plunged 3.68 percent, or 258.57 points, to close at 6,763.38.
Ayala Land Inc. fell 7.2 percent to close at 31.30 pesos. Philippine Long Distance Telephone Co. dropped 3.5 percent to close at 2,988 pesos.
— Taipei dropped 0.65 percent, or 53.78 points, to 8201.02.
— Bangkok dropped 1.46 percent, or 22.81 points, to 1,539.26.
Airports of Thailand plunged 10.27 percent to 166 baht, while telecoms company True Corp. lost 7.21 percent to 10.30 baht.
— Jakarta closed down 1.92 percent, or 97.27 points, at 4,971.35.
Retailer Hero Supermarket dropped 7.50 percent to 3,700 rupiah, while Bank Permata gained 0.59 percent to 1,710 rupiah.
— Kuala Lumpur eased 2.89 points, or 0.16 percent, to close at 1,766.33.
UEM Land fell 2.6 percent to 3.40 ringgit while Hong Leong Bank closed 2.5 percent lower at 13.82. Felda Global Ventures Holdings rose 2.0 percent to 4.50 ringgit.
— Mumbai slid 0.79 percent or 149.82 points, to 19,610.48 points.
Motorcycle maker Bajaj Auto fell 3.32 percent to 1,762.2 rupees while Sun Pharma slid 2.68 percent to 1,017.5 rupees.—Joseph Sinclair
