Asian shares down at opening

Asian shares down at opening
12/11/2007

KUALA LUMPUR

The Kuala Lumpur Composite Index opened down 9.73 points to 1392.52 on Monday.

TOKYO

Japan's Nikkei average hit its lowest level this year on Monday, hurt by exporters including Honda Motor following the yen's sharp rise against the dollar and big losses on Wall Street.

The dollar fell as low as 110.22 yen on Monday morning, the lowest since 108.97 yen hit in May 2006. It was around 110.55 yen as of 8.48am.

'It will inflict a big damage on exporters, many of which have forecast the dollar to average 115 yen,' said Mr Norihiro Fujito, general manager of the investment research and information division at Mitsubishi UFJ Securities.

'Fundamentals will be affected. We now have to be on alert for downside risks of Japanese companies' second-half earnings.'

As of 8.49am, the Nikkei average was down 2.6 per cent at 15,174.04, its lowest since Aug 7 last year. The broader Topix shed 2.7 per cent to 1,454.72, lowest since June 14.

Honda fell 3.6 per cent to 3,770 yen. Canon lost 3.1 per cent to 5,410 yen and Toyota Motor shed 1.6 per cent to 6,050 yen.

Japan's three largest banks were also down. Mizuho Financial Group, extending losses, was down 5.5 per cent at 502,000 yen. The bank lost 5.7 per cent on Friday after the Nikkei business daily reported its unlisted brokerage arm may post a subprime-related loss of over 100 billion yen (S$1.3 billion). -- REUTERS