7:45AM Asia declined. The Nikkei sharply dropped.
Asian-Pacific benchmarks finished broadly in the negative with the Nikkei leading regional decliners, making the biggest point drop for the year. The Japanese index plunged 2.8% to 16,941.40 as weaker dollar against the yen dragged export-related auto and electronics stocks. Honda Motor slipped 3.7%, Toyota Motor declined 2.8%, Sony dropped 2.8%, and Canon lost 2%. Banking and telecom shares also moved lower. Stocks lost ground as oil and yen surged, following the Washington meeting of the Group of Seven. The financial chiefs of the world’s largest economies issued a statement, expressing the need of greater flexibility in exchange rates. Across the region, South Korea’s Kospi slipped 1.4% after hitting a historic high Friday, Hong Kong’s Hang Seng dropped 1.2%, while Taiwan Weighted Index rose 0.5%, and Australia’s All Ordinaries gained 0.4% on strong mining stocks.