By Investors Hub
Asian stocks fell broadly on Monday as turmoil in Turkey and the lira’s free-fall triggered fears of contagion. Tensions between the U.S. and Turkey have been on the rise due to the Turkish detention of U.S. pastor Andrew Brunson and Trump?s move to double metals tariffs on Turkey.
Chinese shares ended off their day’s lows, helped by gains in the technology sector on hopes of a policy boost from Beijing.
The benchmark Shanghai Composite Index still closed down 9.44 points or 0.3 percent at 2,785.87, while Hong Kong’s Hang Seng Index tumbled 430.05 points or 1.5 percent to 27,936.57.
Japanese shares hit a one-month low, tracking weak cues from the U.S. and Europe and a firmer yen on concerns that the financial crisis in Turkey will have a spillover effect on the world economy.
The Nikkei 225 Index plunged 440.65 points or 2 percent to 21,857.43, and the broader Topix Index shed 2.1 percent to close at 1,683.50.
Banks Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group lost 2-3 percent amid the deepening U.S.-Turkey trade rift.
Automakers Toyota, Mazda Motor, Honda Motors and Isuzu Motors also dropped 2-3 percent, while tech stocks such as Tokyo Electron and Screen Holdings fell 3.1 percent and 5.8 percent, respectively.
Australian shares closed lower, with banks and miners pacing the decliners. The benchmark S&P/ASX 200 Index dropped 26.20 points or 0.4 percent to 6,252.20, and the broader All Ordinaries Index ended down 25.50 points or 0.4 percent at 6,341.30.
A decrease in commodity prices on worries about geopolitical tensions pulled down mining stocks. BHP Billiton, Rio Tinto, Fortescue Metals Group and South32 lost 1-2 percent.
Banking stocks also closed lower ahead of quarterly updates later in the week. The big four banks fell around half a percent.
Meanwhile, energy stocks such as Oil Search, Origin Energy and Santos rose between 0.3 percent and 0.8 percent after oil prices rose over 1 percent on Friday on worries about tightening supplies.
Health insurer NIB Holdings soared 9.7 percent after upgrading guidance for the full year. Domain Holdings also rallied 3.8 percent after unveiling its full-year results.
