Currency fear sinks Asia stocks
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Sony is lower Thursday after posting a drop in quarterly profits.
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(CNN) -- Markets across Asia closed lower Thursday, embracing the negative sentiment of the past two days on Wall Street and concern about the continuing weakness of the dollar against their currencies.
The major worry revolves around the yen's strength against the dollar.
The dollar was quoted at 106.04 yen at the close of Asian trading Thursday, up slightly from 105.85 yen earlier.
Sony and other high-profile exporters were jettisoned as export fears forced another day of retreat on the Tokyo market.
The Nikkei 225 average closed down 73.03 points or 0.67 percent to 10,779.44.
The Topix Index of all first section issues shed 8.02 points, or 0.76 per cent, to stand at 1,050.13.
Big Japanese banks and automakers were also weaker, with falls of 1 percent plus for Honda and Toyota.
Sony was a victim of the exchange rate concern. It lost 1.39 percent to 4,260 yen, ending a dream run in which the company has added 15 percent to its market capialisation this month. (Full story)
The company said late Wednesday its profits could rise 10 percent higher than originally forecast because of the Euro's strength against the dollar.
Another U.S. factor to weigh on Asian markets Thursday was an indication from the Federal Reserve that it may put up interest rates in the short to medium-term.
The Fed, however, decided Wednesday to maintain interests at 1 percent – a 45-year low.
The New Zealand Reserve Bank increased its cash rate by 25 basis points to 5.25% Thursday, saying rates had to go up to stem any danger of inflation. (Full story)
Concern over interest rates spooked Wall Street Wednesday, which suffered its greatest loss since October.
The Dow Jones industrial average fell 141.5 points to 10468.37. The S&P 500 Index was down 15.57 points at 1128.48. The tech-heavy Nasdaq dropped 38.67 points to 2077.37. (Full story)
Across Asia, the markets were universally negative. The biggest dip came in Hong Kong, where the Hang Seng shed 1.66 percent to 13,208.47.
PCCW lost 2.4 percent to HK$6, while China Mobile retreated 2.81 percent to HK$25.95
The South Korean Kospi Index fell 0.71 percent to 853.47. Major exporter Hyundai lost 3.94 per cent of its value.
Losses in Singapore were led by the DBS Group, which shed 1.9 percent as the Strait Times Index moved 1.25 percent into the negative at 1839.51.
Taiwan's Taiex had a similar day, losing 1.15 percent to finish at 6312.65. Taiwan Semiconductor was under the hammer again, shedding 1.48 percent to end at T$66.50
Australia was not immune. Its benchmark S&P/ASX 200 index was down 15.1 points or 0.46 percent to 3264.5.
Investors fled resource stocks, fearing the stronger Australian currency might have a negative impact on six-monthly earning figures, which are due out over the next week.
BHP Billiton closed at A$11.27, down 17c, Woodside tumbled 12 cents to A$14.63 and Rio Tinto dropped 5c to A$35.36.
One resources winner was WMC, which finished at A$5.16, up 4c.
The picture for banks was more positive, although profit-takers moved in on National Australia Bank, which rose 95c Wednesday. It dropped 10c to end at $30.30.
ANZ moved 18c higher to $17.69 after taking a beating the day before, and Westpac was $16.55, up 17c.
