By Investors Hub
Asian stocks tumbled on Monday as weaker than expected U.S. jobs data for November as well as disappointing data from China and Japan raised fresh concerns over global growth.
Brexit-related uncertainty and rising tensions between the U.S. and China over the detention of tech company Huawei’s CFO Meng Wanzhou also dented investor sentiment.
Chinese shares fell as data on trade pointed to slower global demand. The benchmark Shanghai Composite Index dropped 21.31 points or 0.8 percent to 2,584.58, while Hong Kong’s Hang Seng Index ended down 311.38 points or 1.2 percent at 25,752.38.
China’s exports rose 5.4 percent in November from a year earlier, customs data showed on Saturday, marking the weakest performance since a 3 percent contraction in March. Import growth stood at 3 percent, the slowest since October 2016.
Separately, Chinese consumer inflation and producer price inflation eased in November, giving policymakers more room to loosen fiscal and monetary policies.
Japanese shares hit a six-week low on worries over fresh U.S.-China trade tensions after White House trade adviser Peter Navarro said the Trump administration would raise tariff rates on China if the two countries fail to resolve their issues during the 90-day truce period.
Data showing that the Japanese economy contracted the most in over four years in the third quarter also added to investor worries over slowing global growth. GDP shrank at an annualized rate of 2.5 percent in July-September, worse than an initial estimate of a 1.2 percent contraction, revised data showed.
The Nikkei 225 Index tumbled 459.18 points or 2.1 percent to close at 21,219.50, the lowest level since October 29th. The broader Topix index closed 1.9 percent lower at 1,589.81.
Machinery firms fell on concerns over Chinese demand. Fanuc dropped 1.9 percent, Hitachi Construction Machinery declined 4.1 percent and Komatsu slumped 5.2 percent.
Nissan Motor lost 2.9 percent after Tokyo prosecutors indicted the automaker along with its ousted Chairman Carlos Ghosn. Market heavyweight Fast Retailing shed 2.4 percent.
Japan Display plummeted 10.6 percent on a Nikkei report that it is cutting production of liquid crystal display panels for the iPhone XR.
Pioneer Corp plummeted 27.3 percent on news that private equity firm Baring Private Equity will buy the cash-strapped electronics firm for $900 million.
Australian markets hit two-year lows amid renewed worries about slowing global growth and U.S.-China trade tensions.
The benchmark S&P/ASX 200 Index plunged 129.00 points or 2.3 percent to 5,552.50, while the broader All Ordinaries Index slumped 130.40 points or 2.3 percent to 5,627.50.
The big four banks lost 3-4 percent, while mining heavyweights BHP and Rio Tinto ended mixed. Engineering service provider WorleyParsons plummeted 4.7 percent.
Meanwhile, Oil Search gained 0.6 percent and Santos advanced 1.4 percent as oil extended gains from Friday.
Gold miner Evolution rallied 2.5 percent and Newcrest Mining advanced 1.6 percent after gold prices rose to a nearly five-month high on Friday.
