Banks lead Japan stock plunge
 |
Shares in Resona are down sharply on reports of a government sale.
Story Tools
YOUR E-MAIL ALERTS
|
Follow the news that matters to you. Create your own alert to be notified on topics you're interested in.
Or, visit Popular Alerts for suggestions.
|
|
(CNN) -- A plunge in Japanese banking stocks is pushing the Nikkei towards its largest fall in six weeks Tuesday, with the index down 2.9 percent at the end of the morning session.
Tech stocks in Japan and the rest of Asia are also lower as investors are swept up in a broad wave of selling.
Driving the downturn is the strength of regional currencies against the dollar, which eats into the value of Asian exports.
Japan's currency is trading near three-year highs of 108.74 yen while the Australian dollar is at six-year highs of 71.51 U.S. cents.
In Tokyo, the Nikkei 225 is 2.9 percent lower to 10,199.93 at the midday break. The broader Topix is off 3.3 percent to 1002.10.
Mizuho Financial Group, the largest bank by assets, is down more than 7 percent to 220,000 yen. UFJ and MTFG are both down more than 6 percent and SMFG is off 5.5 percent to 464,000 yen.
But the biggest fall is for Japan's fifth-largest bank, Resona Holdings, which is down 12.67 percent to 131 yen after reports the Japanese government might sell its Resona stake to get back funds it used to bail out the bank in June.
Carmakers also are well into the red with Nissan down 3.8 percent to 1267 yen. Honda is off 3.3 percent to 4340 yen and Toyota is down 1.7 percent to 3410 yen.
Tech stocks are also suffering with Fujitsu falling 4.6 percent to 626 yen and Hitachi off 4.7 percent to 650 yen. Consumer electronics stock Canon is off 2.3 percent to 5080 yen and Sony 2 percent lower to 3920 yen.
All are big exporters whose earnings are affected by a stronger yen.
The market's biggest stock, mobile phone operator NTT DoCoMo, is 2.2 percent lower to 221,000 yen.
In South Korea, the Kospi is 1.26 percent lower to 786.52 with SK Telecom down 3 percent to 194,000 won and market heavyweight Samsung Electronics losing 1.82 percent to 457,500 won.
But leading exporter Hyundai Motor is up 1.7 percent to 43,350 won after surprising the market with its third-quarter earnings. (Full story)
Australia's S&P/ASX200 index is down 0.68 percent to 3208.0 in early afternoon trade.
Big bank National Australia Bank is down 1.24 percent to A$29.35 after posting record full-year earnings. (Full story)
The market's biggest stock News Corp. is down 2.75 percent to A$12.73 while resources giant BHP Billiton is trading at A$11.34, down 2.66 percent.
Earnings for global miners BHP and rival Rio Tinto are susceptible to exchange rate variations.
In New Zealand, the Top 50 is up 0.51 percent to 2323.89 near the close.
Taiwan's Taiex is down almost 1 percent to 6000.00, with chip foundry and market heavyweight TSMC down sharply, off 3.7 percent to T$65.50.
In Hong Kong, the Hang Seng index is 1.3 percent lower to 11,993.27. Big bank HSBC is off 1.3 percent to HK$115.50.
Singapore's Straits Times index is also in the red, down 1.4 percent to 1717.89. SingTel is 1.1 percent lower to S$1.78.
The moves in Asia follow losses on Wall Street Monday as investors cashed in on recent gains. The Dow Jones industrial average close 0.5 percent lower at 9,756.53. The tech-heavy Nasdaq lost 1.5 percent to 1,941.64. (Full story)
