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Asia stocks drop; Nikkei falls 1.25% as strong yen weighs

Published 08/18/2011, 03:22 AM
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Investing.com – Asian stock markets were broadly lower on Thursday, amid ongoing concerns over prospects for global economic growth, while shares in Japanese exporters were pressured by a strong yen.

During late Asian trade, Hong Kong's Hang Seng Index sank 1.4%, Australia’s ASX/200 Index fell 1.22%, while Japan’s Nikkei 225 Index retreated 1.25%.

The U.S. dollar continued to trade below levels that prompted the Bank of Japan to intervene in the currency market in early August, trading at 76.65, close to the pair’s all-time low of 76.12 it hit in March.

Shares in Japanese exporters came under pressure, amid concerns over export earning prospects.

Electronics giant Sony retreated 2.4%, digital camera maker Canon lost 1.5%, while automakers Nissan and Honda dropped 3.65% and 2.6% respectively.

Shares in the technology sector performed poorly, tracking their U.S. counterparts lower.

Elpida Memory shares tumbled 4.45%, while shares of Toshiba were down 4.4%

On the upside, Asahi Group Holdings saw shares climb 1.7% after saying it planned to acquire New Zealand-based Independent Liquor in a deal valued at nearly JPY97.6 billion

Meanwhile, in Hong Kong, oil producers were lower as crude prices dipped on the New York Mercantile Exchange, dampening the earnings outlook for energy companies.

PetroChina shares fell 2.4%, offshore oil explorer CNOOC slumped 2.1%, while shares in Sinopec declined 1.1%.

Hong Kong-based exporters were also lower. Shares of Li & Fung, which is the world’s biggest supplier of toys to major U.S. retailers, retreated 0.9%, while shares in Esprit Holdings, which counts Europe as its largest market fell 2.75%.

The outlook for European stock markets was downbeat. The EURO STOXX 50 futures pointed to a loss of 1.2%, France’s CAC 40 futures dropped 1.1%, the FTSE 100 futures fell 1%, while Germany's DAX futures indicated a loss of 1.4%.

Later in the day, the U.S. was to publish a flurry of economic data with government reports on initial jobless claims, consumer price inflation, existing home sales, manufacturing activity in Philadelphia as well as a report on natural gas stockpiles.

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