Recovery worries dampen Asian markets

Asian stocks slid yesterday with Taiwan suffering its worst one-day fall in six months, as fears mounted that China could impose further measures to curb loan growth, potentially dampening a global recovery.

Taiwan’s main index fell 3.5 per cent to its lowest close since November 30, 2009, with UMC tumbling 5.2 per cent. In Seoul, the KOSPI index fell nearly two per cent as shares of memory chip maker Hynix slumped more than nine per cent.

Japanese stocks fell, sending the Topix index to its biggest slump in two months. The Nikkei 225 Stock Average slipped 1.8 per cent to close at 10,325.28 in Tokyo. The Topix index fell two per cent to 916.40.

Komatsu lost 2.5 per cent and Nippon Yusen KK slipped 3.6 per cent on concern shipping demand will wane. Sony sank 4.8 per cent as the yen strengthened. Toyota fell 2.5 per cent to ¥3,870 and Honda skidded 2.7 per cent to ¥3,090.

KDDI, Japan’s No2 telecom firm, tumbled 8.6 per cent after it said it would pay $4 billion (Dh14.7bn) for a controlling stake in Jupiter Telecommunications, the country’s biggest cable TV firm. Jupiter fell 6.6 per cent to ¥90,600 after jumping 14.4 per cent on Monday.

Hong Kong shares fell to the lowest closing level in more than four months after a profit warning from Foxconn. Foxconn tumbled nine per cent to HK$8.05.

The benchmark Hang Seng Index lost ground for a fifth consecutive session, nearly falling below the key psychological level of 20,000 points for the first time in more than four months. It ended down 2.38 per cent or 489.22 points at 20,109.33, after retreating as much as 2.68 per cent to 20,046.6 earlier, its lowest level since September 4.

The China Enterprises Index of top mainland stocks was down 3.78 per cent at 11,410.12

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