Asian stock markets prolonged their downfall for yet another day on Thursday as Japanese business confidence dropped and higher borrowing costs for Italy sparked worries over the ability of European governments to get a grip on their ever-burgeoning debts. Meanwhile, Japanese Nikkei declined over one and a half percent after the Bank of Japan’s “tankan” survey of business sentiment fell to minus 4. The figure represents the percentage of companies saying business conditions are good minus those saying conditions are unfavourable, with 100 representing the best mood and minus 100 the worst. Japan's strong yen has hit multiple historic highs this year against the dollar, making business conditions difficult for Japan’s export-reliant economy.
Moreover, Shanghai Composite tumbled over two percent after a preliminary reading of HSBC’s China Purchasing Managers Index showed the level of activity at mainland Chinese factories contracted again in December, though the rate of decline was slower than in November. Seoul shares too fell over two percent, with buying appetite weak on rising risk aversion amid fears that Europe's debt crisis continues to worsen.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 2,180.90 | -47.63 | -2.14 |
Hang Seng | 18,026.84 | -327.59 | -1.78 |
Jakarta Composite | 3,701.54 | -50.06 | -1.33 |
Nikkei 225 | 8,377.37 | -141.76 | -1.66 |
Straits Times | 2,635.25 | -37.14 | -1.39 |
Seoul Composite | 1,819.11 | -38.64 | -2.08 |
Taiwan Weighted | 6,764.59 | -157.98 | -2.28 |
KLSE Composite |
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