Asian Stocks Slump on Profit Taking

By Investors Hub

Asian stocks moved mostly lower on Friday as investors booked profits following a pullback by U.S. technology stocks overnight. Disappointing earnings news from Amazon (AMZN) intensified worries about corporate earnings.

Japanese shares closed notably lower despite the release of better-than-expected economic data. The Nikkei 225 Index declined 119.80 points or 0.6 percent to finish at 19,959.84. The broader Topix Index closed 0.4 percent lower at 1,621.22.

Toshiba’s shares fell 10.9 percent amid speculation that the company is at a great risk of being de-listed following a delay in the sale of its flash memory unit.

Meanwhile, Reuters reported that Toshiba has agreed to pay $2.168 billion to SCANA to exit from two incomplete nuclear projects undertaken by Toshiba subsidiary Westinghouse.

In economic news, Japan’s unemployment rate was beneath expectations and household spending rose more than forecast in June. Nationwide consumer prices climbed in line with expectations.

Australian shares closed lower for the first time in four days amid a broad-based sell-off as investors braced for local corporate earnings results next week. Banks and healthcare stocks were among the major losers.

The benchmark S&P/ASX 200 Index tumbled 82.20 points or 1.4 percent to close at 5,702.80, while the All Ordinaries Index slumped 77.00 points or 1.3 percent to settle at 5,755.20.

Mining giant BHP Billiton and rival Rio Tinto lost 1.2 percent each. Among banks, ANZ Banking, Westpac, Commonwealth Bank and NAB fell between 1.5 percent and 2 percent.

Healthcare stock Cochlear lost more than 3 percent, while peers CSL and Ramsay Healthcare declined more than 2 percent each. Energy major Woodside Petroleum dipped 0.5 percent, but Santos rose 0.3 percent.

Webjet said its full-year earnings could be under a cloud amid a dispute with its auditor over the accounting treatment for a contract with Thomas Cook. The online travel agency’s shares fell by almost 7 percent.

In China, the benchmark Shanghai Composite Index edged up 4.34 points or 0.1 percent to close at 3,254.13, while Hong Kong’s Hang Seng Index slid 151.78 points or 0.6 percent to 26,979.39.