Asian stocks end volatile week down

Asian stocks fell on Friday, ending another volatile week on a negative note, after fresh economic data from the US raised more concerns about the health of the world’s largest economy, the destination for many of the region’s exports.

The unexpected decline in the Philadelphia Federal Reserve’s manufacturing index gave investors a new reason to fret over the health of the US economy, following declines on Wall Street. Financials also weighed down indexes in Asia on lingering concerns about credit markets.

The Nikkei 225 stock average ended the day down 1.4 per cent at 13,500.46. Trading was very choppy in Tokyo, but the index ended up losing 1 per cent in value over the week. The broader Topix fell 1 per cent to 1,321.37.

The yen strengthened overnight, raising concerns about profits at exporters, which already were weighing down the index due to concerns about US demand. The yen recently traded at 107.32 after Thursday’s weaker level of over 108.

Canon shares led the market down, sliding 2.6 per cent to Y4,860, TDK dropped 2.3 per cent to Y7,760, and Toyota lost 2 per cent to Y5,960.

The domestic side of Japan’s economy provided no cheer. Supermarket sales fell for the 25th month, declining 1.7 per cent from a year earlier, while investor’s weren’t impressed with KDDI’s decision to offer free phone calls between family members in its bid to lure more subscribers and fend off competition from Softbank.

“[The supermarket sales] did not help matters, serving as a reminder of the sluggish consumption environment,” Cameron Umetsu, from Nomura International, in a report. “A new discount plan from a major mobile phone operator conspired to dampen earnings expectations in the sector amid elevated fears of price competition.”

KDDI shares tumbled to a near two-year low, losing 10 per cent to Y650,000. Softbank shares fell 2 per cent to Y2,210, while NTT DoCoMo shares skidded 4.8 per cent to Y158,000.

Exporters also weighed down the Kospi in Seoul, closing down 1.1 per cent. Samsung Electronics dropped 2 per cent to Won582,000, while Hynix Semiconductor fell 3.3 per cent to Won23,750.

Financial stocks weighed down most indexes across Asia. In Australia, banks accounted for the top three companies leading the S&P ASX 200 down.

National Australia Bank dropped 3.3 per cent to A$28.59, Westpac Banking slid 2.5 per cent to A$22.47 and Commonwealth Bank of Australia lost 2 per cent to A$42.59. The overall index fell 0.4 per cent to 5,559.9.

Oil refiner Caltex also had a bad day, with its shares slumping 11 per cent after it reported a smaller-than-expected profit rise.

In Hong Kong, the Hang Seng index dropped 1.4 per cent to 23,305.04, with the index of mainland shares traded in the territory down 1.7 per cent.

Bank of Communications dropped 3.1 per cent to HK$8.9. China Construction Bank dropped 1.9 per cent to HK$5.6, after a newspaper reported that the bank would make two acquisitions including a Chinese life insurer called Happy Insurance.

Shares of oil and gas producers took more of a back seat Friday, as oil dropped back around the $100 mark. China’s CNOOC erased Thursday’s gains, falling 2.8 per cent, while PetroChina followed a similar path, falling 2.7 per cent. Australia’s Santos slid 3.5 per cent to A$12.60, after it reported disappointing earnings.

Gold also fell from its record of $953.60, and was recently around $945.00. However, platinum was still making new records, trading at $2,192.

In separate commodity-related news, Nippon Steel and trading company Sumitomo Corp said they will buy preferred shares in Mitsui Mining from Sumitomo Mitsui Bank and convert them into normal shares after April 2009, raising their stakes in the coke producer to 21.7 per cent respectively.

Shares of Mitsui Mining initially surged 9.1 per cent but closed down 4.6 per cent at Y398.

Shanghai shares suffered the biggest drop in Asia, sliding 3.5 per cent to 4,370.86.

Shanghai Pudong Development Bank continued to slide for a third day on rumours of its share sale, recently down 7.5 per cent. The stock has lost more than a fifth of its value over the past three days.

Shares in Mumbai were recently down 1.9 per cent at 17,404.46.