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Sept. 12, 2011, 4:52 a.m. EDT

Asia stocks plunge after U.S., European losses

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By Michael Kitchen and Nick Godt, MarketWatch

MUMBAI (MarketWatch) — Asian stocks plunged in Monday trading, with some shares hitting multiyear lows, after renewed fears over Europe’s sovereign-debt crisis led to steep selling in U.S. and European markets at the end of last week.

Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -1.20%  ended the day with a 2.3% loss — its lowest close since 2009 — while Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -1.22%  plunged 4.2% lower.

Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.52%  lost 3.7% for the day, and Singapore’s FTSE Straits Times Index /zigman2/quotes/210597985/delayed SG:STI -0.01%  fell 2.7%.

South Korean, Taiwanese and mainland Chinese markets were closed for holidays.

The losses came after the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.42%  and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.16%  each dropped 2.7% on Friday and the Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +1.68%  index fell 2.6%. See report on U.S. stock moves Friday.

“Certainly we have seen a very poor performance from the U.S. markets on Friday. ... plus European markets haven’t done very well either, and clearly the local markets are trading down on that,” said Macquarie Private Wealth division director Lucinda Chan.

Chan said the European situation was “the key focus” and that “the markets really aren’t convinced yet” of Europe’s ability to solve its debt crisis.

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World marks 9/11 anniversary

France honors 9/11 victims with a replica of the twin towers as Europe, Asia and the Middle East mark the 10th anniversary. Video courtesy Reuters.

Among developments hitting shares Friday in Western markets was the resignation of European Central Bank board member Juergen Stark, a proponent of higher interest rates, whose departure was seen by some as signs of a policy dispute at the ECB. Read more on Stark’s resignation from the ECB.

Many financial shares, which are especially sensitive to developments in the European debt situation, plunged in Asia on Monday.

In Sydney, Westpac Banking Corp. /zigman2/quotes/203084975/delayed AU:WBC +0.92%   /zigman2/quotes/210300378/delayed WEBNF +1.00%  lost 4.6%, Macquarie Group Ltd. /zigman2/quotes/206727308/delayed AU:MQG +0.58%   /zigman2/quotes/204353811/delayed MCQEF -1.31%  fell 4.2%, and Commonwealth Bank of Australia /zigman2/quotes/200638713/delayed AU:CBA +0.84%   /zigman2/quotes/207018701/delayed CBAUF +2.13%  gave up 4.1%.

In Hong Kong, HSBC Holdings PLC /zigman2/quotes/202687335/delayed HK:5 -3.54%   — which carries a heavy weighting on the Hang Seng Index — fell 5.5% in morning trade, hitting a two-year low. HSBC is headquartered in London and has large exposure to Europe. The share drop also came on news that the lender’s Hong Kong chief Mark McCombe was leaving the company to work for BlackRock Inc. /zigman2/quotes/207946232/composite BLK +0.65%

Local worries about asset quality and possible fundraising needs for Chinese banks also worked to pull mainland Chinese banks down, led by a 5.8% tumble by Agricultural Bank of China Ltd. /zigman2/quotes/200705246/delayed HK:1288 -1.35%   [ /zigman2/quotes/204629388/delayed CN:601288 -0.33% . See This Week in China column on questions surrounding soundness of Chinese banks.

Insurers also suffered severely in the financial sell-off in Hong Kong, with Ping An Insurance Group Co. /zigman2/quotes/210315058/delayed HK:2318 -2.16%   /zigman2/quotes/202212125/delayed PNGAY -0.66%  tumbling 5.9%, China Life Insurance Co. /zigman2/quotes/202359856/delayed HK:2628 -2.34%   /zigman2/quotes/206573290/composite LFC -3.04%  diving 5.8%, and AIA Group /zigman2/quotes/203565558/delayed HK:1299 -1.63%   /zigman2/quotes/201974019/delayed AAIGF -0.68%  down 5.2%.

Japanese banks also fell sharply, with Mitsubishi UFJ Financial Group Inc. /zigman2/quotes/207520099/delayed JP:8306 -4.44%   down 2.7%, while smaller rivals Shinsei Bank Ltd. /zigman2/quotes/210166295/delayed JP:8303 -0.80%   /zigman2/quotes/209928917/delayed SKLKF +0.27%  and Aozora Bank Ltd. /zigman2/quotes/202607094/delayed JP:8304 -3.31%  dropped 3.5% and 3.3%, respectively.

But even worse losses hit Japanese exporters with large European exposure: Sony Corp. /zigman2/quotes/201361720/delayed JP:6758 -2.48%    shed 3.4%, Sharp Corp. /zigman2/quotes/203224600/delayed JP:6753 +0.19%   /zigman2/quotes/207472799/delayed SHCAF -6.25%  dove 5%, and Honda Motor Co. /zigman2/quotes/200490352/delayed JP:7267 -1.31%    /zigman2/quotes/207173990/composite HMC -2.48%  fell 3.8%.

Shares of Suzuki Motor Corp. /zigman2/quotes/201794956/delayed JP:7269 -2.77%   /zigman2/quotes/208973828/delayed SZKMF +7.27%  finished down 2.6% after news that Volkswagen AG /zigman2/quotes/206736865/delayed DE:VOW +1.05%   /zigman2/quotes/200781593/delayed VLKAF -5.49% , with which Suzuki has a partnership, had accused it of violating the two firms’ agreement by procuring diesel engines from a third party. News reports shortly after the Tokyo market close cited Suzuki sources as saying the partnership would be cancelled.

Trade-focused Hong Kong shares dragged lower by European fears, China Cosco Holdings Co. /zigman2/quotes/205658335/delayed HK:1919 -1.81%   /zigman2/quotes/202389244/delayed CICOF -2.74%  lost 4.6%, also weighed by concerns about high-priced charter contracts. See Caixin Online report on Cosco’s charter troubles.

Likewise, apparel and logistics group Li & Fung Ltd.   dropped 4.5%, hit by its heavy exposure to European markets.

Australian mining shares fell with the broader market, as BHP Billiton Ltd. /zigman2/quotes/201448516/delayed AU:BHP -5.60%   /zigman2/quotes/208108397/composite BHP -2.20%  fell 3.9%, Rio Tinto Ltd. /zigman2/quotes/200083756/delayed AU:RIO -7.35%   /zigman2/quotes/202627887/composite RIO -4.26%  surrendered 4.3%, and Alumina Ltd. /zigman2/quotes/210515632/delayed AU:AWC -3.41%   /zigman2/quotes/201398507/delayed AWCMF -3.57%   lost 7.3% of its value.

Going forward, however, Macquarie’s Chan said Sydney-listed resource shares may be among the safer plays, as Chinese economic data released last week suggested a soft landing for the world’s No. 2 economy. See report on Chinese economic data.

“With China being able to cool their economy, this is a positive for Australian equities,” especially resources, said Chan.

Not all analysts, however, were upbeat about the data, with Daiwa Capital Markets saying Friday that, “on balance, we view that the ‘moderation’ in the August headline [consumer price index] is not decisive” and that the Chinese central bank had “little room ... to relax its policy over the near term.”

/zigman2/quotes/210597971/delayed
JP : Nikkei
26,107.65
-315.82 -1.20%
Volume: 0.00
July 6, 2022 3:15p
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
21,586.66
-266.41 -1.22%
Volume: 2.89M
July 6, 2022 4:08p
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,594.50
-34.80 -0.52%
Volume: 752,354
July 6, 2022 5:17p
loading...
/zigman2/quotes/210597985/delayed
SG : Singapore: SGX
3,103.66
-0.45 -0.01%
Volume: 0.00
July 6, 2022 5:20p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
30,967.82
-129.44 -0.42%
Volume: 328.20M
July 5, 2022 5:04p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,831.39
+6.06 +0.16%
Volume: 2.51B
July 5, 2022 5:04p
loading...
/zigman2/quotes/210599654/delayed
XX : STOXX
407.43
+6.75 +1.68%
Volume: 0.00
July 6, 2022 12:37p
loading...
/zigman2/quotes/203084975/delayed
AU : Australia: Sydney
$ 19.85
+0.18 +0.92%
Volume: 8.51M
July 6, 2022 4:10p
P/E Ratio
14.30
Dividend Yield
6.10%
Market Cap
$68.78 billion
Rev. per Employee
$646,763
loading...
/zigman2/quotes/210300378/delayed
US : U.S.: OTC
$ 13.47
+0.13 +1.00%
Volume: 4,420
July 5, 2022 2:13p
P/E Ratio
13.18
Dividend Yield
N/A
Market Cap
$45.98 billion
Rev. per Employee
$478,263
loading...
/zigman2/quotes/206727308/delayed
AU : Australia: Sydney
$ 169.66
+0.98 +0.58%
Volume: 676,876
July 6, 2022 4:10p
P/E Ratio
13.79
Dividend Yield
3.67%
Market Cap
$61.99 billion
Rev. per Employee
$904,042
loading...
/zigman2/quotes/204353811/delayed
US : U.S.: OTC
$ 112.50
-1.50 -1.31%
Volume: 695.00
July 5, 2022 2:10p
P/E Ratio
12.39
Dividend Yield
N/A
Market Cap
$40.59 billion
Rev. per Employee
$667,979
loading...
/zigman2/quotes/200638713/delayed
AU : Australia: Sydney
$ 92.00
+0.77 +0.84%
Volume: 2.84M
July 6, 2022 4:10p
P/E Ratio
15.31
Dividend Yield
4.08%
Market Cap
$155.45 billion
Rev. per Employee
$656,113
loading...
/zigman2/quotes/207018701/delayed
US : U.S.: OTC
$ 64.42
+1.35 +2.13%
Volume: 8,502
June 29, 2022 3:28p
P/E Ratio
14.28
Dividend Yield
N/A
Market Cap
$105.65 billion
Rev. per Employee
$493,152
loading...
/zigman2/quotes/202687335/delayed
HK : Hong Kong
$ 49.10
-1.80 -3.54%
Volume: 42.72M
July 6, 2022 4:08p
P/E Ratio
11.20
Dividend Yield
4.00%
Market Cap
$1028.42 billion
Rev. per Employee
$2.13M
loading...
/zigman2/quotes/207946232/composite
US : U.S.: NYSE
$ 620.72
+4.02 +0.65%
Volume: 572,841
July 5, 2022 4:00p
P/E Ratio
15.60
Dividend Yield
3.14%
Market Cap
$93.43 billion
Rev. per Employee
$1.10M
loading...
/zigman2/quotes/200705246/delayed
HK : Hong Kong
$ 2.92
-0.04 -1.35%
Volume: 228.08M
July 6, 2022 4:08p
P/E Ratio
3.90
Dividend Yield
8.29%
Market Cap
$1220.79 billion
Rev. per Employee
$3.18M
loading...
/zigman2/quotes/204629388/delayed
CN : China: Shanghai
¥ 3.02
-0.01 -0.33%
Volume: 447.25M
July 6, 2022 3:00p
P/E Ratio
4.30
Dividend Yield
6.85%
Market Cap
¥1042.05 billion
Rev. per Employee
¥2.61M
loading...
/zigman2/quotes/210315058/delayed
HK : Hong Kong
$ 52.15
-1.15 -2.16%
Volume: 25.04M
July 6, 2022 4:08p
P/E Ratio
9.50
Dividend Yield
5.48%
Market Cap
$984.25 billion
Rev. per Employee
$3.85M
loading...
/zigman2/quotes/202212125/delayed
US : U.S.: OTC
$ 13.49
-0.09 -0.66%
Volume: 266,814
July 5, 2022 3:59p
P/E Ratio
7.80
Dividend Yield
4.58%
Market Cap
$125.02 billion
Rev. per Employee
$513,733
loading...
/zigman2/quotes/202359856/delayed
HK : Hong Kong
$ 12.48
-0.30 -2.34%
Volume: 43.82M
July 6, 2022 4:08p
P/E Ratio
5.76
Dividend Yield
6.10%
Market Cap
$845.00 billion
Rev. per Employee
$9.84M
loading...
/zigman2/quotes/206573290/composite
US : U.S.: NYSE
$ 7.97
-0.25 -3.04%
Volume: 996,866
July 5, 2022 4:00p
P/E Ratio
7.70
Dividend Yield
5.22%
Market Cap
$109.29 billion
Rev. per Employee
$1.24M
loading...
/zigman2/quotes/203565558/delayed
HK : Hong Kong
$ 84.60
-1.40 -1.63%
Volume: 23.63M
July 6, 2022 4:08p
P/E Ratio
17.71
Dividend Yield
1.73%
Market Cap
$1020.93 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201974019/delayed
US : U.S.: OTC
$ 10.85
-0.07 -0.68%
Volume: 35,021
July 5, 2022 3:51p
P/E Ratio
17.66
Dividend Yield
N/A
Market Cap
$129.80 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/207520099/delayed
JP : Japan: Tokyo
¥ 710.00
-33.00 -4.44%
Volume: 83.59M
July 6, 2022 3:00p
P/E Ratio
8.07
Dividend Yield
4.51%
Market Cap
¥9205.33 billion
Rev. per Employee
¥40.60M
loading...
/zigman2/quotes/210166295/delayed
JP : Japan: Tokyo
¥ 1,980.00
-16.00 -0.80%
Volume: 590,700
July 6, 2022 3:00p
P/E Ratio
21.05
Dividend Yield
0.61%
Market Cap
¥417.28 billion
Rev. per Employee
¥51.89M
loading...
/zigman2/quotes/209928917/delayed
US : U.S.: OTC
$ 15.19
+0.04 +0.27%
Volume: 0.00
June 29, 2022 2:10p
P/E Ratio
17.30
Dividend Yield
N/A
Market Cap
$3.16 billion
Rev. per Employee
$461,789
loading...
/zigman2/quotes/202607094/delayed
JP : Japan: Tokyo
¥ 2,630.00
-90.00 -3.31%
Volume: 1.42M
July 6, 2022 3:00p
P/E Ratio
8.78
Dividend Yield
5.86%
Market Cap
¥314.12 billion
Rev. per Employee
¥54.82M
loading...
/zigman2/quotes/201361720/delayed
JP : Japan: Tokyo
¥ 10,830.00
-275.00 -2.48%
Volume: 4.25M
July 6, 2022 3:00p
P/E Ratio
15.36
Dividend Yield
0.65%
Market Cap
¥13686.57 billion
Rev. per Employee
¥91.11M
loading...
/zigman2/quotes/203224600/delayed
JP : Japan: Tokyo
¥ 1,038.00
+2.00 +0.19%
Volume: 2.34M
July 6, 2022 3:00p
P/E Ratio
8.57
Dividend Yield
3.85%
Market Cap
¥629.73 billion
Rev. per Employee
¥52.06M
loading...
/zigman2/quotes/207472799/delayed
US : U.S.: OTC
$ 7.50
-0.50 -6.25%
Volume: 0.00
June 14, 2022 9:38a
P/E Ratio
6.90
Dividend Yield
N/A
Market Cap
$4.51 billion
Rev. per Employee
$463,239
loading...
/zigman2/quotes/200490352/delayed
JP : Japan: Tokyo
¥ 3,161.00
-42.00 -1.31%
Volume: 5.79M
July 6, 2022 3:00p
P/E Ratio
7.69
Dividend Yield
3.80%
Market Cap
¥5558.48 billion
Rev. per Employee
¥71.32M
loading...
/zigman2/quotes/207173990/composite
US : U.S.: NYSE
$ 23.61
-0.60 -2.48%
Volume: 2.13M
July 5, 2022 4:00p
P/E Ratio
6.43
Dividend Yield
3.49%
Market Cap
$40.73 billion
Rev. per Employee
$634,714
loading...
/zigman2/quotes/201794956/delayed
JP : Japan: Tokyo
¥ 4,171.00
-119.00 -2.77%
Volume: 2.23M
July 6, 2022 3:00p
P/E Ratio
12.63
Dividend Yield
2.18%
Market Cap
¥2068.27 billion
Rev. per Employee
¥51.57M
loading...
/zigman2/quotes/208973828/delayed
US : U.S.: OTC
$ 30.10
+2.04 +7.27%
Volume: 2,800
June 21, 2022 1:56p
P/E Ratio
10.16
Dividend Yield
N/A
Market Cap
$14.71 billion
Rev. per Employee
$458,932
loading...
/zigman2/quotes/206736865/delayed
DE : Germany: Frankfurt
168.25
+1.75 +1.05%
Volume: 530.00
July 6, 2022 10:37a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€354,929
loading...
/zigman2/quotes/200781593/delayed
US : U.S.: OTC
$ 172.68
-10.03 -5.49%
Volume: 3,113
July 5, 2022 3:15p
P/E Ratio
4.12
Dividend Yield
N/A
Market Cap
$80.35 billion
Rev. per Employee
$433,002
loading...
/zigman2/quotes/205658335/delayed
HK : Hong Kong
$ 10.86
-0.20 -1.81%
Volume: 39.02M
July 6, 2022 4:08p
P/E Ratio
1.61
Dividend Yield
9.41%
Market Cap
$243.31 billion
Rev. per Employee
$12.98M
loading...
/zigman2/quotes/202389244/delayed
US : U.S.: OTC
$ 1.42
-0.04 -2.74%
Volume: 0.00
June 30, 2022 3:35p
P/E Ratio
1.44
Dividend Yield
N/A
Market Cap
$30.97 billion
Rev. per Employee
$1.88M
loading...
/zigman2/quotes/201448516/delayed
AU : Australia: Sydney
$ 37.76
-2.24 -5.60%
Volume: 16.29M
July 6, 2022 4:10p
P/E Ratio
8.49
Dividend Yield
12.70%
Market Cap
$201.95 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208108397/composite
US : U.S.: NYSE
$ 52.94
-1.19 -2.20%
Volume: 5.29M
July 5, 2022 4:00p
P/E Ratio
8.07
Dividend Yield
13.22%
Market Cap
$137.27 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/200083756/delayed
AU : Australia: Sydney
$ 93.37
-7.41 -7.35%
Volume: 2.99M
July 6, 2022 4:10p
P/E Ratio
5.44
Dividend Yield
11.64%
Market Cap
$144.07 billion
Rev. per Employee
$1.71M
loading...
/zigman2/quotes/202627887/composite
US : U.S.: NYSE
$ 57.28
-2.55 -4.26%
Volume: 4.97M
July 5, 2022 4:00p
P/E Ratio
4.41
Dividend Yield
13.83%
Market Cap
$97.66 billion
Rev. per Employee
$1.29M
loading...
/zigman2/quotes/210515632/delayed
AU : Australia: Sydney
$ 1.42
-0.05 -3.41%
Volume: 18.55M
July 6, 2022 4:10p
P/E Ratio
16.34
Dividend Yield
6.04%
Market Cap
$4.29 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201398507/delayed
US : U.S.: OTC
$ 1.08
-0.04 -3.57%
Volume: 0.00
June 22, 2022 10:14a
P/E Ratio
16.69
Dividend Yield
N/A
Market Cap
$2.98 billion
Rev. per Employee
N/A
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Michael Kitchen is Asia editor for MarketWatch and is based in Los Angeles. Nick Godt is a MarketWatch reporter based in Mumbai.

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