Japan Weigh Over Asian Markets, Led By Automakers

December 24, 2008 6:37 a.m. EST

Tokyo, Japan (AHN) - Shares in Asian markets closed lower on Wednesday led by automakers in Japan as the authorities struggle to curb the slumping economy.

Investors in the region have been dumping shares that have lost market value in the on-going financial crisis, hurting the full-year outlook of the major companies.

Oil futures was trading close to $39-a-barrel mark as a light sweet crude-futures barrel for February delivery moved up by 12 cents to $39.10 a barrel in Singapore's electronic trading today.

On Tuesday, the contract continued the fall and dropped by 93 cents to close at $38.98 a barrel in overnight trading on the New York Mercantile Exchange as a report showed that the U.S. home prices slumped.

In currency trading, the yen gained slightly and changed hands at 90.42 yen against U.S. dollar in Asia on Wednesday, after it closed at 90.57 yen late Tuesday in New York.

In Japan, the Nikkei 225 average closed lower by 206.68 points or 2.37 percent at 8,517.10 points led by automakers, while the broader Topix index closed 2.6 percent lower at 826.99 points.

Shares of Honda Motor Co. dropped by as much as 6.5 percent, Suzuki was down 6.2 percent and Toyota Motor Co., Japan's largest car maker, declined by 4.1 percent.

The stock of Bridgestone, which is one of the world's largest tyremakers, slumped by as much as 4.8 percent, followed by Sumitomo Rubber Industries declining by 8.9 percent.

In Hong Kong, the Hang Seng finished lower by 36.65 points or 0.26 percent at 14,184.14 points, and the Hang Seng China Enterprises Index, was trading down by 0.5 percent closing at 7,685.17 points.

In Australia, the S&P/ASX 200 index also closed 1.4 percent higher at 3,582.20 points in Sydney led by major resources and financial companies of the country.

In China, the Shanghai Composite index also finished higher by 1.8 percent at 2,001.50 points on Thursday. The People's Bank of China had slashed its key lending and deposit rates last week by as much as 1.08 percent.

Elsewhere, South Korea's Kospi closed lower by 2.2 percent to 1,856.25 points in Seoul. Taiwan's Taiex index also finished higher by 0.4 percent at 4,423.09 points.