Asian stocks fell, dragging the MSCI Asia-Pacific Index to its fourth weekly decline in five, as weaker manufacturing growth in the US, Europe and China added to signs global economic recovery is faltering.
The MSCI Asia-Pacific Index fell 3.4 percent to 111.70. The gauge has slumped 7.3 percent this year amid concerns Europe’s debt crisis and Chinese steps to curb property prices will hurt global growth.
The Shanghai Composite Index declined 6.7 percent, the biggest decline among benchmark indices in the Asia-Pacific after the New York-based Conference Board revised down an estimate for China’s growth and the country’s manufacturing expanded at a slower-than-expected pace.
China’s manufacturing growth slowed more than economists forecast last month, data released on Thursday showed. The Conference Board on June 29 corrected down its April gauge for China’s economic outlook due to a calculation error.
Goldman Sachs Group Inc on Friday cut its real GDP growth forecast for China this year to 10.1 percent from 11.4 percent, joining BNP Paribas, Macquarie Securities Ltd and China International Capital Corp in doing so.
Taiwan’s TAIEX closed up 1.05 percent on Friday on a technical rebound led by the financial sector, after a 3.3 percent fall posted in the previous three sessions amid concerns over the global economy, dealers said.
The TAIEX rose 76.68 points to 7,330.74, after moving between 7,285.01 and 7,378.77.
Hong Kong’s Hang Seng Index slipped 3.8 percent. Foxconn International Holdings Ltd (富士康控股), the world’s biggest contract maker of mobile phones, tumbled 13.3 percent after predicting a wider first-half loss.
Foxconn, controlled by Taiwan’s Hon Hai Precision Industry Co (鴻海精密), slumped 13.3 percent to HK$4.88, the third-biggest decline on the MSCI Asia-Pacific Index. The company said on June 29 its first-half loss would widen in part because of lower prices for its products and higher depreciation expenses.
Japan’s Nikkei 225 Stock Average lost 5.5 percent, after the yen strengthened for a fourth week, dragging shares of Japanese exporters such as Canon Inc and Sony Corp lower.
Other markets on Friday:
Manila fell 0.73 percent, or 24.28 points, from Thursday to 3,290.98, following Wall Street.
Wellington closed up 0.15 percent from Thursday in its first gain in seven trading days, although the mood remained cautious.
New Zealand’s benchmark NZX-50 index rose 4.29 points to 2,938.11.
Jakarta lost 2.69 points, or 0.09 percent, from Thursday to 2,871.55 as foreign funds sold select consumer and financial stocks after higher-than-expected inflation data for last month raised fears of a rate hike.
Mumbai fell 0.28 percent from Thursday as investors unwound positions ahead of the weekend, awaiting the US jobs data. The benchmark 30-share SENSEX index closed down 48.38 points at 17,460.95.
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