Asian markets took a hit on Thursday after losses on Wall
Street, while dealers were also put off by a warning from Germany’s central
bank that Europe’s debt crisis could continue for a decade.
Gold slipped slightly as traders remained bearish on the
precious metal, which suffered its heaviest loss in 30 years on Monday after
disappointing Chinese economic growth data.
Tokyo fell 1.22 percent, or 162.82 points, to 13,220.07,
Seoul shed 1.24 percent, or 23.78 points, to 1,900.06 and Sydney slipped 1.60
percent, or 80.2 points, to 4,924.4.
In the afternoon Hong Kong lost 0.16 percent but Shanghai
was 0.10 percent higher.
US markets suffered their second big fall in three days on
Wednesday, pulled down by a dive in Apple shares.
Apple fell 5.5 percent to below $400 for the first time
since late 2011 after one of its US suppliers slashed its profit guidance,
which analysts said indicated slow iPhone and iPad sales.
Adding to the downbeat sentiment in New York was Bank of
America’s below-forecast earnings for the January-March quarter.
The Dow fell 0.94 percent, the S&P 500 dropped 1.43
percent and the Nasdaq lost 1.84 percent.
On forex markets, the dollar was trading at 98.10 yen in
afternoon trade, against 99.19 yen in New York late Wednesday.
The euro fetched $1.3050 and 128.00 yen, against $1.3033 and
127.97 yen.
In Europe, Jens Weidmann, head of Germany’s Bundesbank and a
member of the European Central Bank’s council, said in an interview that the
region’s debt woes could last for another 10 years.
“Overcoming the crisis and the crisis effects will remain a
challenge over the next decade,” Weidmann told the Wall Street Journal.
Commodities resumed their recent slide fuelled by Monday’s
Chinese data that showed the economy grew 7.7 percent in the January-March
first quarter, slower than the previous three months and below expectations.
The figures raised doubts about the country, a key driver of
global growth and the biggest energy consumer in the world.
Gold slipped to $1,375.10 an ounce at 0300 GMT, compared
with $1,383.90 late on Wednesday in Asia. However, it was higher than the
two-year lows around $1,340 seen on Monday, when it slumped 10 percent — its
biggest fall since 1983.
It had also suffered a fall of around five percent on
Friday.
“The whole drama started last Friday with the start of the
move in gold, and since then it’s been like a contagion spreading across the
markets,” said Ker Chung Yang, investment analyst at Phillip Futures in Singapore.
“China’s growth just added to the misery, as people are
accepting they’re not going to get 8 percent [economic growth] in the next
couple of quarters.”
Oil prices also slipped, with New York’s main contract,
light sweet crude for delivery in May, down six cents at $86.60 a barrel and
Brent North Sea crude for June shedding 12 cents to $97.57.
