ASIA MARKETS: Asian Shares Drop On Oil Price Decline, Growth Concerns

By Chao Deng

Stocks markets in Asia fell on Friday, with Australia and Hong Kong both losing around 2% as oil prices dropped and concerns grew about the pace of global growth.

The S&P/ASX 200 its sharpest percentage fall this year, sliding 2.1% to 5,188.3, an eight-month low. Energy stocks fell as Brent crude, the global oil benchmark, hit its lowest price since December 2010.

Woodside Petroleum Ltd. was down 2.7%, Santos Ltd. fell 3.5%, and Oil Search Ltd. shed 4%. Mining heavyweights were also down in Australia, with BHP Billiton Ltd. and Rio Tinto Ltd. losing 2.7% and 3%, respectively.

In Hong Kong, the Hang Seng Index fell 1.9% to 23,088.54 after scheduled negotiations between the government and pro-democracy protesters were scrapped. The number of demonstrators has dwindled this week, but could rise again, potentially dealing another blow to local businesses and causing further transportation disruptions.

The losses in the region also came after European Central Bank President Mario Draghi overnight reiterated his commitment to strong measures for combating low inflation in the eurozone, spurring expectations of further easing by the ECB. That added to volatility in global stock markets, where investors have already been on edge with the prospect of higher U.S. interest rates as well as a confluence of growth worries around the world, including in China and Europe.

Stocks in Japan ended down for the third straight week. The Nikkei Stock Average fell 1.2% to 15,300.55, amid dollar weakness. The dollar traded at Yen107.80 from Yen107.84 late Thursday in New York, a move that pushed down stocks of Japanese exporters. Mazda Motor Corp. was down 2.8% and parts maker Denso Corp. lost 2.5%.

Minutes released Friday from a Bank of Japan meeting showed that one board member warned of possible negative effects of additional stimulus, even as many investors expect the bank to expand monetary stimulus by early next year with inflation well below its target level. The comment indicated that not all board members were comfortable with aggressively easing policy further. Any signs of skepticism among central bankers about the economic effects of further easing could weaken the impact of such a move, especially in the minds of market participants.

Elsewhere, the Shanghai Composite Index snapped an eight-session winning streak, finishing down 0.6% at 2,374.54. South Korea's Kospi fell 1.2% to 1,940.92.

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