In Asia, major markets fell, posting the largest weekly decline since October as riots in central Nicosia fueled concerns over Europe's debt crisis. On the corporate front, tire maker Bridgestone, which generates more than 10% of its revenues in Europe, lost 2,9% due to the rising yen. Leighton Holdings dropped 6% following the announcement of the resignations of the chairman and two non-executive directors. Billabong International instead recovered part of yesterday's colossal loss (-14%) on the news that there could be two potential buyers for the Australian sportswear and beachwear company.
The MSCI Asia Pacific index was down 0,3% (to 134.83) as of 9:50am in Tokyo, before the Chinese and Hong Kong markets opened, approaching a 1,4% weekly loss in a at a time when Cyprus is struggling to avoid the collapse of the banking system and manufacturing data in Europe show a sharp decline. The Nikkei 225 Stock Average contracted by 1,3%, dropping to its lowest level since September 2008. Australia's S&P/ASX 200, on the other hand, increased by 0,4%, while South Korea's Kospi showed no significant changes. "It looks like the fall could be intensifying in Europe," said Matthew Sherwood, head of investment markets research at Perpetual Investments in Sydney. "The leadership does not seem ready to intervene effectively yet."
