By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Asian stocks stumbled Thursday after
uncertainty over U.S. monetary policy led to more losses on Wall
Street, with Japanese shares plunging toward their sixth loss in
seven sessions as a strengthening yen hurt exporters.
The Nikkei Stock Average plummeted 4.4% to 12,710.34 -- dropping
back below the 13,000-point level it had recaptured in early April
but briefly lost earlier this month -- while the Topix shed
3.3%.
Australia's S&P/ASX 200 fell 0.8% to enter so-called
correction territory -- having dropped more than 10% from the highs
reached in May. South Korea's Kospi shed 0.3%.
The declines came after U.S. stocks finished lower for a third
straight session overnight as concerns the Federal Reserve could
taper down its bond purchases and scale back a key force behind the
rally in global equities over the past several quarters kept
investors on edge.
The losses on Wall Street reinforced "the notion that the market
is similar to a junkie who needs a constant fix, which in this case
comes in the form of monetary stimulus," said CMC Markets sales
trader Miguel Audencial.
"Even a slight indication or the speculation that this stimulus
will be scaled down may ignite a sell-off," he said.
In Japan, stocks found little respite as the U.S. dollar
(USDJPY) fell further toward the Yen95-level, raising more fears
about the earnings outlooks of companies with a significant
international presence.
Shares of Fast Retailing Co. (FRCOY) skidded 4.1%, Mazda Motor
Corp. (MZDAY) slumped 4.8% and Sharp Corp. (SHCAY) lost 6.7%.
"The combination of elevated risk aversion and disappointment
over recent policy announcements, in particular the lack of detail
about Prime Minister [Shinzo] Abe's 'third arrow,' has prompted
ever more upside for the [yen]" said Crédit Agricole forex strategy
chief Mitul Kotecha.
In Sydney, mining stocks came under pressure, with BHP Billiton
Ltd. (BHP) lower by 1.7% and Fortescue Metals Group Ltd. (FSUMY)
sliding 1.9%.
Rio Tinto Ltd. shares (RIO) declined 1.2%. The company said it
plans to sell its Eagle nickel and copper project to Lundin Mining
Corp.
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