Asia report: Markets start week lower after miserable Friday on Wall Street

Asian markets finished the Monday session mostly in the red, following the lead of Wall Street which fell sharply on Friday on the back of better-than-expected jobs figures in the US.

In Japan, the Nikkei 225 fell 2.55% to 22,682.08, as the yen strengthened 0.31% against the dollar to last trade at JPY 109.83.

Many of the country’s major exporters finished lower, with Canon down 3.26%, Mitsubishi Motors off 0.73% and Toyota down 1.64%.

On the mainland, the Shanghai Composite was ahead 0.73% at 3,487.38, and the smaller, technology-heavy Shenzhen Composite lost 0.84%.

Fresh data released during the session showed that China’s services sector was expanding at its quickest pace in more than five years.

The Caixin/Markit services purchasing managers index rose to 54.7 in January from 53.9 in December - the highest reading since mid-2012.

South Korea’s Kospi lost 1.33% to 2,491.75, while the Hang Seng Index in Hong Kong was down 1.09% at 32,245.22.

Oil prices were lower, with Brent crude last down 1.3% at $67.70 per barrel, and West Texas Intermediate off 0.96% to $64.83.

In Australia, the S&P/ASX 200 slid 1.6% to 6,026.20, with the hefty financials subindex falling 1.29%, while energy slipped 2.56% and materials was 2.18% lower.

Of the major banks in the region, Australia and New Zealand Banking Group was down 1.27%, Commonwealth Bank fell 1.23%, National Australia Bank was 1.25% lower and Westpac Banking Corporation was off 1.23%.

The major miners were also mostly lower, with BHP down 2.14% in Sydney, Fortescue Metals ending the day flat and Rio Tinto off 2.24%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 lost 2.1% to settle at 8,241.83, led lower by outdoor equipment and clothing retailer Kathmandu, which was off 3.8%.

The down under dollars were mixed, with the Kiwi last 0.03% weaker against the greenback at NZD 1.3701, while the Aussie strengthened 0.12% to AUD 1.2604.