Bleak end to the week for Asian markets

Asia-Pacific markets had a bleak end to the week, with many markets falling, as disappointing US growth and initial claims data confirmed fears about the health of Asia’s most important export market.

Individual stocks were hit by gloomy investors unimpressed with earnings results, with TDK, NEC and Sharp all hit hard. Nintendo sank for a second day after its results.

The Nikkei closed 2.1 per cent lower at 13,094.59, with the broader Topix losing 2.4 per cent to 1,272.93. TDK led the Nikkei lower, sinking 3.9 per cent to Y6,250, after first quarter profit sank 67 per cent and the company revised down its outlook for the full year.

NEC tumbled 17 per cent to Y495, after its first quarter profit slumped 64 per cent, and Sharp sank 5.1 per cent to Y1,430 after its first quarter profit slid 14 per cent.

Japanese megabank Sumitomo Mitsui Financial took a hammering after it said quarterly net income halved. The stock plunged 7.7 per cent to Y783,000.

Things weren’t looking any better in other markets in the region during morning trading, but Shanghai and Hong Kong shares took a turn for the better in the afternoon following comments by Hu Jintao, China’s president, that it was important to maintain steady but fast economic development while containing price rises.

News that the country’s central bank would allow banks to increase their lending by 5 per cent also helped reverse the losses the bank shares had posted during morning trading.

The Hang Seng closed 0.6 per cent higher at 22,862.60, while the index of mainland Chinese shares traded in Hong Kong gained 0.3 per cent to 12,545.22. Shanghai stocks rose 0.9 per cent to 2,801.817.

Citic jumped 4.1 per cent to Rmb23.52, while Merchants Bank gained 3.6 per cent to Rmb24.48. Minsheng Bank climbed 3.7 per cent to Rmb6.18 and Industrial Bank of China rose 3.2 per cent to Rmb25.91.

The S&P/ASX 200 was less cheery as it suffered as oil producers BHP Billiton and Rio Tinto slid 1.5 per cent to A$39.11 and 3 per cent to A$121.60 respectively.

Insurance company Suncorp sank 14 per cent to A$11.53 after it announced earnings guidance for the year that disappointed investors.

Banks were lower, with Macquarie losing 3.8 per cent to A$49.50 and Westpac Banking falling 2.6 per cent to A$20.99. Macquarie shares weren’t helped by a dismal performance from BrisConnections in its debut on Thursday, where the share price plunged 60 per cent on the first day of dealing. Macquarie was the sole book-runner to the IPO.

Singapore stocks shed 0.7 per cent to 2,909.41, while in Seoul, the Kospi slid 1.3 per cent to 1,573.77. The Sensex was trading 1.6 per cent higher at 14,589.96. Karachi tumbled once again, with shares sinking 3.9 per cent to 10,171.39.