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TOKYO - Asian stock markets tumbled on Friday after weak US retail and jobs figures revived fears about the health of the world's largest economy, dealers said.
Both Tokyo and Hong Kong markets were down nearly three per cent as investment funds that had actively bought Asian shares cashed in, fearing that a global slowdown would further dampen Asian economies.
"Selling sentiment engulfed Asian markets following the slump on Wall Street as players in the region anticipated additional bad news from the US," said Kazuhiro Takahashi, a broker at SMBC Daiwa Securities.
Wall Street was hammered overnight as more losses in private-sector employment weighed on market sentiment and fears that consumption, a main pillar for US growth, is stumbling.
A survey by payroll firm ADP on Thursday showed the loss of 33,000 private-sector jobs in July, which heightened anxiety ahead of a government report Friday on monthly US payrolls for August, dealers said.
"Investment funds are now taking profits after actively buying high-performing Asian shares," said Katsuhiro Kondo, a dealer at Tokai Tokyo Securities.
"Profit-taking is likely to continue for now, which means tough times are ahead for Asian stocks" unless the US economy shows clear signs of a turnaround, Kondo said.
In Tokyo, the benchmark Nikkei-225 index lost 345.43 points or 2.75 per cent to close at 12,212.23, the lowest close since mid-March.
The Japanese market was also alarmed by a spike in the yen, which makes exports less competitive overseas.
Hong Kong share prices closed down 2.2 per cent, with the Hang Seng Index off 456.2 points at 19,933.28.
In Shanghai, the Shanghai Composite Index, which covers both A and B shares, was down 3.29 per cent.
Besides being hit by Wall Street, investors in the Chinese market were worried that an upcoming initial public offering by brokerage China Merchants Securities would soak up liquidity, dealers said.
Fears of a global slump also grew when the eurozone Thursday downgraded its growth estimate for the year.
In Sydney, the benchmark S&P/ASX 200 closed down 2.1 per cent. Singapore was down 1.97 per cent, Mumbai was off 2.79 per cent and Manila fell 1.1 per cent.
"Investors are worried that the US, our major trading partner, continues to be on a slump," Astro del Castillo of First Grade Holdings told Dow Jones Newswires.
Seoul was down 1.55 per cent, trimming earlier losses on news that Samsung Electronics may acquire SanDisk, the world's largest flash memory card maker by revenue.
In Taipei, the weighted index fell 105.35 points or 1.64 per cent at 6,307.28.
"Wall Street's dive has raised concerns over the global economy. Investors are afraid that Taiwan's already slowing economy will be further hurt by international factors," President Securities analyst Steven Huang said.
- AFP/ir
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