Japanese Stocks Tumble 2.9% - WSJ.com

WSJ:

A stronger yen sent Japanese shares to their biggest percentage loss in more than a month on Friday, leading most Asian markets lower.

Japan's Nikkei Stock Average tumbled 2.9% to 9408.36, finishing the week down 1.9%. Year-to-date, the index is off almost 11%.

Exporters were hit hard, where the Marine Day holiday on Monday also prompted profit-taking. Canon lost 3.2% and Sony sank 5%, while Nissan Motor fell 3.1%.

Shinsei Bank slumped 4.6% on lingering worries about the lender's low capital buffer and concerns ahead of the end of July deadline for it to submit a business-improvement plan to the Financial Services Agency.

Most regional markets started the day on a weak note amid concerns about the U.S. economy and after the U.S. Senate approved a sweeping financial overhaul legislation.

"Investor sentiment is mainly hit by worries about a recovery in the U.S. economy," said Hidenori Suezawa, chief strategist at Nikko Cordial Securities in Japan.

In Hong Kong, Agricultural Bank of China made a slightly stronger debut than it did in Shanghai on Thursday. The stock climbed 2.2% to 3.27 Hong Kong dollars (42 U.S. cents) from IPO at HK$3.20. That was more than the 0.7% gain recorded by the bank's A-shares the previous day. The Shanghai-listed shares dropped 0.4% to 2.69 yuan (39 cents) Friday.

"Investors are waiting on the sidelines, as they think Agbank will fall below its IPO price in no time," said Wang Junqing at Guosen Securities. Agbank is still in the running to become the world's largest IPO, subject to an over-allotment option that may be exercised by the offering's underwriters.

Chinese property stocks broadly advanced on the mainland. China Vanke rose 1.3% in Shenzhen, while Cinda Real Estate climbed 2.7% in Shanghai.

"Investors are looking for an excuse to buy China 'policy' stocks, most particularly property stocks. The bigger the institutional investor…the more it makes sense to position the portfolio ahead of any formal policy move," Christopher Wood, equity strategist at CLSA, wrote in a note to clients.

Posted via email from Jim Nichols