HONG KONG (MarketWatch) -- Asian markets fell Friday, with the Japanese yen's strength against major currencies weighing down shares of its exporters and as Chinese stocks were hurt by Beijing's move to curb property speculation.
Technology shares around the region were dragged lower by U.S. after-hours losses in Google's GOOG, +1.51% and Advanced Micro Devices' AMD, +3.52% shares on Wall Street, although both companies reported better-than-expected results.
"The falls in Google's and AMD's stocks prompted worries that investors' earnings expectations have risen too much and that they may sell stocks on actual earnings results," said Kwak Joong-bo at Hana Daetoo Securities in South Korea.
Japan's Nikkei Stock Average of 225 companies shrank 1.5% to 11,102.18, Australia's S&P/ASX 200 fell 0.3%, South Korea's Kospi shed 0.5%, Hong Kong's Hang Seng Index lost 1.3%, Taiwan's Taiex slid 0.7% and China's Shanghai Composite lost 1.1%.
Dow Jones Industrial Average DJIA, +1.61% futures were down 27 points in screen trade.
Among regional tech plays, Elpida Memory ELPDF (6665) shrank 2.6% in Tokyo, Samsung Electronics SSNLF, +0.00% dropped 0.8% in Seoul, while heavyweight Taiwan Semiconductor Manufacturing Co. TSM, +0.29% lost 2.2% and Inotera Memories sank 3% in Taipei.
The fall came after Google's shares fell 4.9% despite reporting a 37% rise in first-quarter profit. AMD dropped 4.8% on its weak guidance as well as profit-taking in the wake of a run-up after sterling Intel results. Read full story on Google's results.
Hong Kong-listed Foxconn International FXCNY, +2.61% (2038) dropped 4.7% after the contract handset maker said Thursday its net profit fell 68% to $38.59 million in 2009, coming in well below expectations.
Chinese property stocks dropped after the government on Thursday introduced tougher measures, including raising the down payment for second-home buyers to a minimum of 50% from the previous 40%, to curb property speculation and rein in prices.
"Property market overheating is the policy preoccupation due to its macroeconomic and political implications. We do not think the latest restrictive and forceful measures will be the last," ING said in a note.
Shares of China Vanke Co. CVKEY, +0.00% (000002) slid 0.8% and Beijing Huaye Realestate (600240) lost 2.2% on the mainland bourses, while China Overseas Land & Investment (688) CAOVY, -3.60% shed 4.8% and Shimao Property Holdings skidded 4.7% in Hong Kong. Read full story on property stocks.
China banks also fell as the measures are expected to cool mortgage loan growth. Bank of China shed 4% and China Construction Bank contracted 2.7% in Hong Kong; their Shanghai-listed shares dropped 1.2% and 1.1%, respectively.
Meanwhile, China's first stock-index futures made their debut Friday, climbing sharply as trading began on a bright long-term economic outlook and initial enthusiasm about the new derivatives tool, before trimming some gains. The May 2010 index-futures contract was the most actively traded and opened at 3,450.0, up 1.5% from 3,399.0, the base price the China Financial Futures Exchange set for all four contracts making their debut. The May contract finished up 0.5% at 3,415.6. Read full story.
Concerns that the Reserve Bank of India may tighten its monetary policy next week weighed down interest-rate-sensitive stocks in Mumbai afternoon trading, with real-estate major DLF sliding 3.6% and Housing Development Finance Corp. losing 0.9%.
Profit-taking accelerated in South Korean shares after a military official said an external explosion appears to have caused the sinking of a South Korean ship near a disputed border with North Korea.
"But I expect the negative impact to be short-lived. Moody's upgrade of country's sovereign ratings despite such an accident, indicates foreigners have become less sensitive to geopolitical risk," said Kwak at Hana Daetoo Securities.
Materials and energy stocks around the region sagged after their U.S. peers underperformed Thursday. In Sydney, BHP Billiton BHP, +2.78% (BHP) came off 0.8% and Rio Tinto RIO, +3.44% (BHP) dropped 0.5%, with Woodside Petroleum (WPL) WOPEY, -0.13% losing 1.6%.
Shares of Macarthur Coal (MCC) soared 8.3% on strong volume after the company said it will start talks with suitor Peabody Energy after two of Macarthur's major shareholders said its 4.07 billion Australian dollar ($3.7 billion) offer is worth considering. Peabody Thursday raised its takeover offer for the company in the fierce takeover battle for the world's biggest exporter of pulverized coal.
Shares of Aluminum Corp. of China (2600) ACH, +8.29% dropped 2.8% in Shanghai and 4.5% in Hong Kong after the aluminum producer said the China Securities Regulatory Commission has approved its plan to sell no more than one billion Shanghai-listed A-shares via a private placement.
Elsewhere, New Zealand's NZX 50 lost 0.3% and Philippine stocks ended 0.4% down. India's Sensex fell 0.5%, Singapore's Straits Times declined 0.4% and Indonesia's JSX shed 0.8% in afternoon trading.
Thailand's SET Index skidded 3% to 738.19 in late afternoon trading as investors there returned from a three-day break, with sentiment weighed down as anti-government protests in Bangkok continued. Banks and other tourism related stocks fell sharply. Krung Thai Bank sank 6.1% and Thai Airways International TAWUF, +0.00% declined 6.2%, while Airports of Thailand lost 4.2%.
But despite the steep recent declines, some analysts remained bullish. Citigroup analyst Suchart Techaposai wrote in a note that although last weekend's clashes added to the volatility, they won't kill economic growth.
In foreign-exchange markets, the euro was weighed by continued worries about Greek fiscal problems and growing doubts that Greece can continue raising money on the financial markets. The euro was at $1.3541 from $1.3577 in late New York trade Thursday and at 125.41 yen from 126.31 yen. The dollar was at 92.60 yen from 93.04 yen.
Lead June Japanese government bond futures were up 0.22 at 138.93, as investors were cheered by a strong result in Thursday's auction of five-year JGBs. The yield on the key 10-year cash JGB was down 2.0 basis points at 1.340%.
Spot gold was at $1,154.30 per troy ounce, down $4.50 cents from late New York trade. May Nymex crude-oil futures were down 77 cents at $84.74 per barrel.