HONG KONG: Asian stocks fell Monday, with Tokyo plunging 3.72 percent to a six-week low after downbeat Chinese manufacturing data and a sharp drop on Wall Street last week.
Eyes were also turning towards a series of key US economic statistics due later in the week, and a policy meeting of the European Central Bank (ECB).
Tokyo, which fell more than five percent last week, was down 512.72 points at 13,261.82, continuing volatile trading that has seen a series of sharp drops.
"A major factor behind today's big decline was Friday's fall on Wall Street," Kenzaburo Suwa, strategist with Okasan Securities, told AFP.
"On top of that, Japanese shares are still in the middle of adjustment following the recent surge."
Some analysts have been predicting a sharp correction in the Nikkei, which had surged about 80 percent over the past six months to climb above the 15,000 level before the recent downturn.
Seoul fell 0.57 percent, or 11.48 points, to close at 1,989.57, and Sydney dropped 0.78 percent, or 38.3 points, to end at 4,888.3.
In afternoon trade, Shanghai lost earlier gains to drop 0.21 percent and Hong Kong was trading flat, edging down 0.02 percent.
The falls came after conflicting manufacturing data from China, with HSBC saying Monday that activity fell to an eight-month low in May.
The British banking giant's final purchasing managers' index (PMI) reading for May came in at 49.2, worse than the preliminary 49.6 announced on May 23.
A reading below 50 indicates contraction in the sector.
The result was in sharp contrast to the Chinese government's PMI result for May, which came in at 50.8, better than April's 50.6, the National Bureau of Statistics said Saturday.
European stock markets fell Friday, with London's FTSE 100 index of leading shares shedding 1.11 percent to 6,583.09 points, as traders digested record eurozone unemployment of 12.2 percent in April.
At a financial conference in Shanghai Monday, European Central Bank chief Mario Draghi predicted a "very gradual recovery" in the crisis-hit eurozone starting later this year despite lingering "vulnerabilities".
The bank is due to announce updated eurozone forecasts for growth and inflation later in the week, as it meets to discuss options for stimulating the recession-hit economy following a recent cut in interest rates.
"The economic situation in the euro area remains challenging but there are a few signs of a possible stabilisation, and our baseline scenario continues to be one of a very gradual recovery starting in the latter part of this year," Draghi said.
US stocks also tumbled Friday, accelerating their losses after a flurry of mixed indicators sparked volatile trade, with consumer spending down but shoppers' confidence climbing.
The Dow Jones Industrial Average shed 1.36 percent to 15,115.57, with the "fear index" measuring market volatility finishing at its highest level since mid-April.
The Commerce Department reported consumer spending dropped by 0.2 percent in April, but there was also a jump in the Chicago area PMI index and a positive outlook in the University of Michigan consumer confidence barometer.
US manufacturing data is due out later in the day, and a stronger-than-forecast reading could stoke fears the Federal Reserve will soon taper off massive stimulus measures.
Another indicator of health in the world's largest economy, US non-farm payrolls data for May, is due out Friday.
On currency markets Monday, the dollar was barely changed against the yen, fetching 100.38 yen against 100.37 yen in New York late Friday.
The euro bought $1.3018 and 130.70 yen against $1.2996 and 130.44 yen.
Oil was down in Asian trade, with New York's main contract, West Texas Intermediate light sweet crude for delivery in July, dropping 29 cents to $91.68 a barrel. Brent North Sea crude for July delivery shed 29 cents to $100.10.
Gold was at $1,396.90 at 0645 GMT from $1,411.70 late Friday.
Comments
Comments are closed.