By Sarah Turner and V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks tumbled Friday as the
yen firmed up a day after the new Bank of Japan governor offered
few new details on future policy, while Hong Kong shares fell after
weak results from PetroChina Co. and several other blue-chip
firms.
Many Asia markets suffered from heightened worries over Cyprus
after the European Central Bank (ECB) issued a deadline to its
parliament for meeting the terms of a proposed bailout, an issue
which also hurt stocks on Wall Street overnight.
Perpetual Investments head of investment research Matthew
Sherwood said that if the ECB withdrew its funding, and "no new
capital sources could be identified, the Cypriot banking sector
would collapse, and it would be forced out of the euro zone."
Japan's Nikkei Stock Average skidded 1.6% to rank as the
region's worst performer, with exporters hit as the U.S. dollar
(USDJPY) traded under in the mid-Yen94 range, well below its
Yen96.03 level late Wednesday.
Shares of Advantest Corp (ATE) dropped 2.7%, (ATE)Fanuc Corp.
(FANUY) fell 5.1% and Honda Motor Co. (HMC) gave up 2.5% on worries
a firmer yen would lower their repatriated earnings.
"We still see [the dollar-yen pair] recapturing its highs, but
the real test will be in two weeks, when the new Bank of Japan
Governor holds his first [monetary-policy] meeting. If he fails to
ease, we could see more profit-taking," said BK Asset Management
managing director Kathy Lien.
Among other movers in Tokyo, Panasonic Corp. (PC) dropped 2.3%.
A Nikkei news report said the company was negotiating with the
labor union to cut bonuses and lengthen its work week.
Banks were also weak after new central-bank chief Haruhiko
Kuroda failed to offer specifics of new policy moves at a press
briefing late Thursday. Mitsubishi UFJ Financial Group Inc. (MTU)
dropped 1.4%, and Sumitomo Mitsui Financial Group Inc. (SMFJY) shed
1.4%.
Seven & I Holdings Co. (SVNDY) fell 3.7% in the downbeat
market despite a Nikkei news report tipping the owner of 7-Eleven
convenience stores to post a record operating profit for the year
ended in February.
Hong Kong down, Sydney up
Elsewhere in the region, Hong Kong's Hang Seng Index fell 0.5%,
China's Shanghai Composite Index was flat and India's Sensex
slipped 0.2%.
However, South Korea's Kospi climbed 0.2%, while Australia's
S&P/ASX 200 also gained 0.2% following a decline Thursday, when
Prime Minister Julia Gillard survived a surprise challenge to her
leadership of the ruling party.
In Hong Kong, shares of PetroChina (PTR) fell 2.1%, and Foxconn
International Holdings Ltd. (2038.HK) shed 2.4%, after each posted
downbeat results.
Banking heavyweight HSBC Holdings PLC (HBC), which has a
significant presence in Europe, shed 1.4% amid concerns over
Cyprus.
However, China Unicom Hong Kong Ltd. (CHU) jumped 4.6% after
posting strong earnings for 2012.
In Sydney, National Bank of Australia Ltd. (ANZBY) rose 1%, and
apparel company Billabong International Ltd. (BLLAY) jumped 7.9% to
recover losses posted the previous day.
Contracting firm Leighton Holdings Ltd. slumped 6.9% after the
firm announced the resignation of its chairman and two
non-executive directors, over a potential breakdown in its
relationship with major shareholder Hochtief AG
In Seoul, shares of SK Telecom Co. (SKM) dropped 1.9%, extended
losses in the wake of a major cyberattack believed to be the work
of North Korea.
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