By Dow Jones Newswire
Asian stocks started lower Monday as the fallout from Friday’s plunge in Turkish asset prices made its way across the Pacific. European and U.S. stocks fell to end the week as worries built that Turkey’s troubles could prove contagious.
The Turkish lira /zigman2/quotes/210561895/realtime/sampled USDTRY +0.3663% put in fresh lows against the U.S. dollar early Monday, down more than 8% in Asian trading hours, after dropping 14% on Friday.
The Nikkei /zigman2/quotes/210597971/delayed JP:NIK +0.36% was down 1.6% to lead the early declines, with the yen /zigman2/quotes/210561789/realtime/sampled USDJPY +0.1286% up as much as 0.5% against other major currencies. Exporter stocks were particularly hard hit, with Toyota /zigman2/quotes/203803129/delayed JP:7203 +0.85% and Canon /zigman2/quotes/207639533/delayed JP:7751 -0.98% each down more than 1.5%.
Chinese stocks fell more than 1% in early trading. Property stocks pulled back after banks denied a mortgage-rates cut, and construction and metal names were muted. The Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -0.14% fell 1.6% while the Shenzhen Composite /zigman2/quotes/210598015/delayed CN:399106 +0.28% was off 1.2%.
Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +0.17% tumbled 1.7%, with steep declines across all sectors. Tencent /zigman2/quotes/204605823/delayed HK:700 +0.55% fell 2.4% while China Construction Bank /zigman2/quotes/208974133/delayed HK:939 -0.31% dropped 1.5%
Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.19% was off 1.4%, with big caps including Samsung /zigman2/quotes/209800866/delayed KR:005930 +0.18% and Posco /zigman2/quotes/201759282/delayed KR:005490 +0.25% falling at least 1%. In New Zealand, where trading ended Friday just as the lira’s drop was beginning, the NZX 50 /zigman2/quotes/211587880/delayed NZ:NZ50GR +0.94% was off 0.4% to reverse some of its end-of-week strength. Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.84% was down 0.5% with losses held in check by the Aussie dollar’s weakness.