Asian stocks fell led by banks and exporters (MarketWatch) (31-03-2008)

HONG KONG (MarketWatch) -- Asian markets declined on Monday with banks in Japan losing ground on worries about global credit markets, while exporters were under pressure due to the drop on Wall Street and a stronger yen.

Australian and South Korean shares retreated, giving up early gains as financials such as Australia & New Zealand Banking Group and Industrial Bank of Korea paced losses, but the region's airline stocks rallied as crude oil prices weakened further.

The Nikkei 225 Average fell 2.1% to 12,553.42 in Tokyo, while the broader Topix index lost 3% to 1,206.89, with financials extending early losses in late morning trading.

China's Shanghai Composite dropped 2.3% to 3,497.66, reflecting disappointment after the government didn't announce any new measures to support the beaten-down stock market, as rumored on Friday. The index ended 4.9% higher on Friday on speculation regulators might announce the introduction of index futures trading.

In Hong Kong, the Hang Seng Index dropped 1.7% to 22,894.85 and the Hang Seng China Enterprises Index dropped 1.9% to 12,192.16.

Elsewhere, S&P/ASX 200 index fell 0.2% to 5,342.80, after rising as high as 5,375 earlier in the day, while South Korea's Kospi also retreated from early gains, and was recently down 0.3% to 1,696.75. New Zealand's NZX 50 rose 0.7% to 3,470.43, Singapore's Straits Times Index slipped 0.2% to 3,026.21 and Taiwan's Weighted index lost 0.9% to 8,549.62.

Financials broadly declined in the region, with Mizuho dropping 4.7% and Citigroup Inc. sinking 5.1% in Tokyo. ANZ Banking Group stock gave up 2.2% in Sydney, Industrial Bank of Korea shares lost 2% in Seoul, HSBC Holdings slipped 0.8% in Hong Kong, DBS Group Holdings lost 1.7% in Singapore, Cathay Financial Holding Co. declined 3.5% in Taipei and ICICI Bank stock fell 2.6% in early Mumbai trading.

 Source: MarketWatch