Asian stocks fall, Tokyo plummets on stronger yen

Passersby watch an electronic stock board of a securities firm in Tokyo Thursday, May 30, 2013. Asian stocks fell on Thursday, with Tokyo plummeting more than five percent as the yen gained strength, after a series of economic forecasts underlined concerns over global growth. AP PHOTO/KOJI SASAHARA

HONG KONG—Asian stocks fell on Thursday, with Tokyo plummeting more than five percent as the yen gained strength, after a series of economic forecasts underlined concerns over global growth.

Trading was cautious ahead of key US jobs data due later in the day, which could shed light on whether the Federal Reserve will begin winding down its aggressive stimulus programme.

Tokyo stocks tumbled 5.15 percent, or 737.43 points, to 13,589.03 as jittery investors dumped shares following a sharp fall on Wall Street.

Hirokazu Kabeya, senior strategist at Daiwa Securities, said “investors still remain shaken-up” after the recent volatile trade in Tokyo, including a single-day loss of more than seven percent last week.

“They don’t see any indication of the downward trend coming to a halt,” he said.

In other markets, Sydney slipped 0.89 percent, or 44.0 points, to close at 4,930.7, while Seoul ended flat, edging down 1.10 points to 2,000.10.

Hong Kong lost 0.31 percent, or 70.62 points, to 22,484.31 and Shanghai slid 0.27 percent, or 6.27 points, to 2,317.75.

The Dow Jones Industrial Average fell 0.69 percent to 15,302.80 on Wednesday due to concern over the global economy and the recent surges in US bond yields.

The losses were also triggered by rising concerns that the US Fed could soon begin tapering its monetary stimulus plan, hiking fears of a major correction on Wall Street after it touched fresh all-time highs in recent sessions.

Sentiment was downbeat Wednesday after the Organization for Economic Cooperation and Development (OECD) trimmed its world economic growth forecast for 2013 to 3.1 percent from 3.4 percent.

The OECD slashed its growth forecast for the world’s most advanced economies, except Japan, but said growth should pick up later this year.

The International Monetary Fund also cut its 2013 growth forecast for China on Wednesday to “around 7.75 percent” from 8.0 percent, citing a sluggish global recovery which hurt exports.

China is seen as a potential driver of global recovery in the face of the eurozone’s ongoing debt crisis and unsteady growth elsewhere.

Investors were now focusing on key US data releases including weekly jobless claims later in the day and a non-farm payrolls report next week, dealers said.

In currency markets, the dollar fetched 100.61 yen in afternoon Asian trade Thursday against 101.13 yen in New York late Wednesday.

The euro bought $1.2972 and 130.57 yen against $1.2942 and 130.87 yen in US trade.

Oil prices recovered in Asia, with New York’s main contract, light sweet crude for delivery in July adding eight cents to $93.21 a barrel and Brent North Sea crude for July delivery increasing 29 cents to $102.72.

Gold was at $1,399.52 at 1045 GMT from $1,387.70 late Wednesday.

In other markets:

— Bangkok fell 1.27 percent, or 20.29 points, to close at 1,581.32.

Coal producer Banpu dropped 1.30 percent to 304 baht, and PTT Plc shed 1.75 percent to 337 baht.

— Wellington fell 0.40 percent, or 17.75 points, to 4,470.51.

Fletcher Building was down 0.24 percent at NZ$8.36, while Telecom Corp up 1.1 percent at NZ$2.28.

— Taipei fell 1.13 percent, or 94.61 points, to 8,243.29.

Taiwan Semiconductor Manufacturing Co. was 0.90 percent lower at Tw$110.0 while Hon Hai Precision shed 1.40 percent at Tw$77.2.

— Jakarta ended down 1.37 percent, or 71.05 points, at 5,129.65.

Carmaker Astra International slid 2.08 percent to 7,050 rupiah, while palm oil producer Astra Agro Lestari fell 1.05 percent to 18,850 rupiah.

— Kuala Lumpur shares lost 0.48 percent, or 8.55 points, to close at 1,774.92.

Hong Leong Financial Group fell 3.2 percent to 15.16 ringgit while Maxis shed 2.5 percent to end at 6.70. DiGi.com gained 1.3 percent to 4.77 ringgit.

— Manila plunged 3.81 percent, or 275.22 points, to 6,953.35.

Ayala Corp. fell 3.2 percent to 645 pesos and SM Investments Corp. was down 4.3 percent at 1,119 pesos.

— Singapore dropped 0.93 percent, or 31.46 points, to 3,336.01.

United Overseas Bank shed 0.38 percent to Sg$21.20 and real estate developer Capitaland slipped 2.50 percent to Sg$3.51.

— Mumbai rose 0.34 percent, or 67.76, points to 20,215.4, rising ahead of key local GDP data due on Friday.

Vehicle and farm equipment maker Mahindra and Mahindra rose 4.61 percent to 1,004.6 rupees while rival Tata Motors rose 4.31 percent to 316.9 rupees.—Anuj Chopra

Originally posted at 01:43 pm | Thursday, May 30, 2013