Asian markets unsettled in Thursday’s trading (MarketWatch) (05-06-2008)

HONG KONG (MarketWatch) -- The U.S. financial sector that declined during Wednesday’s trading, affected Asian markets on Thursday, with Japanese shares dropping on banks such as Mizuho Financial Group on concerns. On the energy front, a continuing decline in crude-oil prices hurt energy related trading stocks such as Marubeni Corp.

The Nikkei 225 Average dropped 0.65% to 14,341.12 and the broader Topix index gave up 0.6% to 1,421.34.

Hong Kong stocks were unsettled and wavered between positive and negative zones amid thin trading volumes.

The benchmark Hang Seng Index climbed ended up by 0.55% closing at 24,255.29, after dropping as low as 24,003.98 earlier in the day, and the Hang Seng China Enterprises Index slipped. Turnover on the exchange was around HK$32 billion ($4.1 billion) minutes before the end of the morning trading session.

Listed companies’fund raising plans continued to weigh on China's Shanghai Compositewhich ended the session down by 0.54% to 3,351.64, taking losses into the third straight session.

Elsewhere, Australia's S&P/ASX 200 slipped 0.9% to 5,533.10 and New Zealand's NZX 50 index rose 0.1% to 3,560.39, while South Korea's Kospi shed 0.6% to 1,823.17. Singapore's Straits Times Index fell 0.5% to 3,118.86 and Taiwan's Weighted index gave up 0.5% to 8,586.88.

Regional detail

Banking, insurance and brokerage stocks lost ground after ratings agency Moody's Investors Service said it might downgrade the Aaa ratings of U.S. bond insurance companies, Ambac Financial Inc. and MBIA Inc. 

Shares of Mizuho shed 3.3%, Nomura Holdings Inc. lost 2.1% and Sompo Japan Insurance Inc. gave up 1.7% in Tokyo. In Seoul, shares of Korea Exchange Bank lost 2% and Korean Reinsurance Co. declined 2.1%, while in Singapore, United Overseas Bank dipped 1.1%.

Energy-related stocks also dropped on sustained declines in global crude-oil prices. Among energy producers, BHP Billiton declined 3.3% and Oil Search sank 4.6% in Sydney, and in Tokyo, Inpex Holdings Inc. lost 2.3%. In Hong Kong, Cnooc lost 3%.

Companies trading in energy also fell in Tokyo, with Marubeni losing 2.7% and Mitsubishi Corp. shedding 3.3%.

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  Source MarketWatch