Forexpros - Asian stocks retreated Thursday, with financial issues leading the downturn pulled lower by concerns over European sovereign debt and overnight losses on Wall Street.
During early Asian trade, Hong Kong's Hang Seng Index fell 2.4% to 19,319.43, Japan's Nikkei 225 Index gave up 1.9% 8,873.22, Australia's S&P/ASX 200 declined 1.4% to 4,084.90, and South Korea's Kospi Index sagged 2.2% to 1,766.51.
Along with the Nikkei, the broader-based Topix Index of all issues listed on the first section of the Tokyo Stock Exchange eased 1.7% to 763.23.
European financial issues slumped in Wednesday trade as the financial health of French banks, particularly Societe Generale, spawned a downturn in European and U.S. financial institutions.
SocieteGenerale saw its shares plummet by 14.7% even as it vehemently denied market rumors that France's credit rating was in danger of a downgrade.
By the end of Wednesday trade, the Dow Jones Industrial Average lost 4.6%, the Nasdaq Composite Index was lower by 4.1%, and the S&P 500 dropped 4.4%.
Trading of selected issues on the Hong Kong market, including financial giant HSBC, which makes up 15% of the Hang Seng Index, were suspended due to computer hacking concerns. The exchange reported a "malicious attack" on its Website for corporate earnings.
Operators of the exchange said the suspensions did not disrupt calculations of the Hang Seng Index.
Banks and financial shares gave up ground across the region as Commonwealth Bank of Australia fell 1.6%, Bank of China Ltd. gave up 1.9%, and Mizuho Financial Group Inc. dropped 0.9%.
Meanwhile, Australia's Bureau of Statistics reported that the country's unemployment rate rose 0.1% to 5.1% in July, outpacing economist's forecast of a 4.9% jobless rate for the month..
Japanese core machinery orders jumped 7.7% in June, according to a Cabinet Office report Thursday. The figure exceeded by a wide margin the 1.8% market forecast.
The outlook for European stocks was mixed. France's CAC 40 futures was higher by 1.38% to 3,050.10, Britain's FTSE 100 futures fell 3% to 5,007.16, while Germany's DAX futures added 1.24% to 5,710.10.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
