Asian markets tumbled Monday, extending last week's falls after the US Federal Reserve indicated it could reel in its stimulus later in the year, while Hong Kong and Shanghai were stung by a liquidity crisis in China.
However, the Fed's announcement that it could soon start winding down its bond-buying continued to provide support to the dollar, pushing it back towards 100 yen.
In afternoon trade Shanghai slumped 5.28 percent to below the psychological 2,000-point level analysts had pegged as support. In Hong Kong, shares were 2.18 percent lower.
Tokyo closed down 1.26 percent, or 167.35 points at 13,062.78. The losses reversed a 1.42 percent gain at the start of Monday's session that had been stoked by a solid victory for Prime Minister Shinzo Abe's ruling coalition in elections ahead of national upper house polls next month.
In Sydney, where a number of listed firms rely heavily on trade with China, the market closed down 1.47 percent, or 69.7 points, at 4,669.1, while Seoul skidded 1.31 percent, or 23.82 points, to 1,799.01.
Chinese investors have been sent running by a liquidity crisis in the banking system, which has caused lenders to put the brakes on loans.
The rates banks charge to borrow from each other has surged in the past two weeks but the People's Bank of China has refrained from injecting more cash -- owing to fears about a growth of bad debt -- which has in turn weighed on the economy.
Hopes that Beijing would step in to provide money were dashed at the weekend when a commentary by the official Xinhua news agency said there was no shortage of funds in the financial system.
It blamed speculation and non-bank forms of lending, often called "shadow finance", for the problem.
"It's not that there's no money, it's that the money is not in the right places," the commentary said.
Wu Bangdong, analyst at Changjiang Securities, said: "A lack of policy stance from the central bank during the cash crunch is the main reason that stock markets keep falling, so investors are waiting eagerly for any direction cues."
Global markets have been sent into a downward spiral since the Fed announcement last week that the economy looked in good enough shape for it to start rowing back on its $85-billion-a-month bond-buying scheme.
While the move shows the US economy is gaining strength, dealers fear it will mean there is less cash in the financial system to invest.
Tokyo's Nikkei has been supported however by a strengthening of the dollar against the yen. But the index was negative Monday despite the dollar edging higher and Sunday's poll victory for the government.
The ruling Liberal Democratic Party (LDP) and New Komeito secured solid victories in the Tokyo metropolitan assembly election.
"Voters reaffirmed confidence in 'Abenomics' and the ruling coalition government, which was symbolically important given the recent volatility seen in equities prices," Hirochi Nishi, general manager of equities at SMBC Nikko Securities, told Dow Jones Newswires.
Abenomics refers to the big-spending policy put in place by Prime Minister Shinzo Abe that has been credited with a rallying stock market, weaker yen and a pick-up in economic growth.
"Leading up to the upper house elections in parliament in July, this should reassure investors that the course of present government economic policy will be maintained."
The dollar bought 98.41 yen on Monday in Tokyo, compared with 97.87 yen in New York late Friday. The euro sat at 129.01 yen and $1.3100, against 128.45 yen and $1.3122.
In New York on Friday the Dow rose 0.28 percent, the S&P 500 added 0.27 percent and the Nasdaq fell 0.22 percent.
Oil prices slipped. New York's main contract, West Texas Intermediate light sweet crude for delivery in August, was down 36 cents at $93.33 a barrel and Brent North Sea crude for August delivery shed 54 cents to $100.37.
Gold fetched $1,281.40 per ounce by 0650 GMT, from $1,293.33 late Friday.
In other markets:
-- Taipei ended down 0.45 percent, or 35.28 points, at 7758.03.
-- Wellington ended flat, edging up 0.98 points to 4,364.05.
Goodman Property was up 1.5 percent at NZ$1.04 and Precinct Properties added 0.5 percent to NZ$1.04. Sky Television fell 2.4 percent to NZ$4.96
AFP
Mon Jun 24 2013
Bukit Aman ambil alih kes simbah asid Faisal Halim, suspek kedua direman 5 hari
Ketua Polis Selangor, Datuk Hussein Omar Khan berkata, suspek yang merupakan lelaki warga tempatan sebelum itu dibawa ke Mahkamah Petaling Jaya bagi tujuan permohonan reman.
Prinsip ESG asas penting untuk industri pertahanan - Khaled
Menteri Pertahanan Datuk Seri Mohamed Khaled Nordin berkata adalah penting bagi industri pertahanan untuk mendukung prinsip Alam Sekitar, Sosial dan Tadbir Urus (ESG).
Pokok tumbang hempap landasan monorel, kereta di Jalan Sultan Ismail
Sebatang pokok besar di Jalan Sultan Ismail tumbang dan menghempap sebahagian landasan monorel serta beberapa kereta di kawasan itu pada petang Selasa.
Caprice, isteri henti kongsi mengenai anak di laman sosial
Menerusi Instastory, Caprice berkata dia dan isterinya iaitu Farra Inalis seronok dengan perkongsian daripada ibu bapa yang turut memberi tips penjagaan bayi.
KTM yakin 790 Duke bakal menambah hati peminat
Sempena ulang tahun ke-30, KTM dengan bangganya memperkenalkan slogan baru: “No Bullshit which epitome the lifestyle of embracing challenges and pushing boundaries”.
Dalam beberapa tahun kebelakangan ini, KTM 790 Duke mempunyai permintaan yang sangat tinggi di Asia sehingga KTM Duke telah memindahkan kilang pembuatan KTM 790 Duke ke China.
Dalam beberapa tahun kebelakangan ini, KTM 790 Duke mempunyai permintaan yang sangat tinggi di Asia sehingga KTM Duke telah memindahkan kilang pembuatan KTM 790 Duke ke China.
Pendidikan, budaya kerja dalam membentuk masa depan ekonomi mampan
Menurut Ketua Ekonomi Buruh, Kementerian Sumber Manusia dan Emiratis, UAE, Prof Madya Dr. Mohd Yusof Saari, langkah menyesuaikan sistem pendidikan dan budaya adalah untuk memastikan kelestarian pertumbuhan ekonomi serta mendorong peningkatan keupayaan untuk mengadaptasi setiap arus perubahan yang dinamik.
Aksi sumbangsih: 1,500 polis kawal keselamatan di Stadium Sultan Ibrahim
Sebanyak 1,500 pegawai dan anggota polis ditugaskan bagi mengawal keselamatan pada perlawanan sumbangsih di Stadium Sultan Ibrahim di Iskandar Puteri, Jumaat ini.
Piala Sumbangsih: Jangan ada provokasi - Polis
Polis ingatkan supaya jangan ada provokasi pada perlawanan Piala Sumbangsih antara JDT dan Selangor FC di Stadium Sultan Ibrahim, Iskandar Puteri Jumaat ini.
Tanggungjawab basmi rasuah bukan hanya di tangan kerajaan
Tanggungjawab perangi rasuah bukan hanya terletak di bahu kerajaan semata-mata.
Menurut pakar kriminologi, Datuk Shahul Hamid, sebaliknya, tanggungjawab itu merangkumi semua lapisan masyarakat untuk membasmi jenayah itu secara menyeluruh.
Menurut pakar kriminologi, Datuk Shahul Hamid, sebaliknya, tanggungjawab itu merangkumi semua lapisan masyarakat untuk membasmi jenayah itu secara menyeluruh.
Ketirisan RM277 bilion dalam lima tahun sangat menggemparkan – PM Anwar
Jumlah ketirisan sehingga mencecah RM277 bilion dalam tempoh lima tahun (2018 – 2023) seperti yang didedahkan Suruhanjaya Pencegahan Rasuah Malaysia (SPRM) adalah angka yang menggemparkan, dan membuktikan gejala rasuah semakin membengkak, kata Perdana Menteri Datuk Seri Anwar Ibrahim.