CANBERA (dpa-AFX) - Asian stocks fell sharply on Friday as cautious commentary from the Federal Reserve coupled with rising coronavirus infection rates prompted investors to dump equities.
Chinese shares reversed initial losses to end on a flat note, while Hong Kong's Hang Seng index fell 0.73 percent to 24,301.38.
Japanese shares finished modestly lower on growing fears about a resurgence of coronavirus infections. The Nikkei average dropped 167.43 points, or 0.75 percent, to 22,305.48, its lowest close since June 1.
The broader Topix index closed 1.15 percent lower at 1,570.68, with mining, nonferrous metal and metal product companies pacing the decliners.
Japan's parliament approved today a record $300 billion second extra budget - including the reserve fund - in an effort to shore up the economy.
Australian stocks followed their U.S. peers lower on worries about economic reopening leading to a spike in coronavirus infections.
The benchmark S&P/ASX 200 index tumbled 112.80 points, or 1.89 percent, to 5,847.80, while the broader All Ordinaries index ended down 119.60 points, or 1.97 percent, at 5,959.90.
Energy stocks plunged to their lowest level in three weeks after oil prices crashed. Origin Energy, Beach Energy, Woodside Petroleum, Oil Search and Worley gave up 4-6 percent.
The so-called big four banks dropped 2-3 percent, while mining heavyweights BHP and Rio Tinto ended down 2.1 percent and 1.1 percent, respectively.
Seoul stocks fell sharply as concerns about a potential second wave of infections spooked investors. The benchmark Kospi fell 44.48 points, or 2.04 percent, to 2,132.30, marking the lowest close in eight sessions.
Market leader Samsung Electronics plunged 3.7 percent amid uncertainties surrounding Samsung Group's de facto leader Lee Jae-yong's legal battle in a succession probe. No. 2 chipmaker SK Hynix shed 3.7 percent and top automaker Hyundai Motor declined 3.7 percent.
New Zealand shares fell for a fourth straight session despite a reading of manufacturing activity signaling improvement in May.
The benchmark NZX 50 index fell as much as 4.6 percent in its worst sell-off since March before recouping some of its loss to end the session down 248.99 points, or 2.23 percent, at 10,905.94.
U.S. stocks nosedived overnight to suffer their worst sell-off since March as the Fed's dour economic projections and resurgence in coronavirus cases put investors in risk-off mode.
The Dow Jones Industrial Average plunged 6.9 percent, the tech-heavy Nasdaq Composite plummeted 5.3 percent and the S&P 500 tumbled 5.9 percent.
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