Chinese Banking Shares Tumble, Japanese Car Makers Take a Hit
Chinese car makers also closed lower on the expectation that as liquidity dries up, so too will consumer appetite. FAW Car sank 1.7%, SAIC Motor fell 1.5% and DongFeng Automobile, which has partnered with Honda and produces everything from tour buses to SUVs, slid 3.1%.
One bright spot was a 6% surge in share price of China Sports Industry Group, builder of sports facilities. According to China Daily, investors are betting that there is a huge market in China for sports facilities. China is becoming known for stadium development. A Chinese firm, completed the rebuilding of a 40,000-seat stadium in Zambia in record time, on schedule for the 2010 FIFA World Cup South Africa, and the national stadium in Mozambique will also be Chinese-built.
In Hong Kong, today's losses brought the Hang Seng down 10% from its November high, according to Bloomberg. Banks in the territory fell, with HSBC losing 1.6% and Standard Chartered falling 1.8%. Hong Kong-listed oil and mining shares dropped as the price of crude oil remained low after last week's declines. Cnooc slumped 1% and PetroChina dropped 0.8%. Angang Steel fell 2.3% and Maanshan Iron and Steel (MAANF) dropped 1.6%. Real Gold Mining slid 1.1%.
In Japan, drug maker Kyowa Hakko Kirin plunged 4.3%, but car makers led declines. Toyota lost 2.1%, on worries that the recall of cars with faulty accelerators may be expanded. Honda was down 1.7% and Nissan fell 1.2%.
Among the carnage, Japanese audio and video equipment maker Pioneer, surged 6.8% and car audio and karaoke equipment manufacturer Clarion spiked up 12.4%. As markets sink lower, perhaps more investors are consoling themselves with music, a drink and singing in Karaoke clubs across the region.