Asia stocks sink on U.S. non-farm, weak Asia data; Nikkei down 1.4%

Investing.com - Asian stock markets posted sharp losses on Monday, as investors had their first chance to react to Friday’s disappointing U.S. jobs report, which added to concerns over the pace of the U.S. economic recovery.

Fears over a deeper-than-expected slowdown in China and downbeat economic data out of Japan further weighed on sentiment.

During late Asian trade, Hong Kong's Hang Seng Index plunged 1.7%, Australia’s ASX/200 Index dropped 0.95%, while Japan’s Nikkei 225 Index tumbled 1.4%.

Official data on Friday showed that the U.S. economy added just 80,000 jobs in June, below market expectations for a gain of around 90,000. It was the third consecutive month where hiring failed to top the 100,000-level.

The report also showed that the U.S. unemployment rate held steady at 8.2% in June, in line with expectations.

Meanwhile, in China, government data released earlier showed that consumer price inflation accelerated at the slowest rate since January 2010 in June, potentially giving Beijing room to further ease monetary policy.

An unexpected rate cut from China last week stocked fears of a deeper-than-expected slowdown in the world’s second largest economy.

In Tokyo, the Nikkei came under further pressure after data showed core machinery orders tumbled by 14.8% in May, disappointing expectations for a 2.4% decline.

Shares in heavy machinery makers Komatsu and Sumitomo Heavy Industries retreated 4% and 3.35% respectively, while shares in industrial robot maker Fanuc lost 3.6%.

Another government report released earlier revealed a smaller-than-expected current-account surplus in May, as the trade account posted a wider deficit.

Exporters retreated amid concerns over a rising yen. Sony shares dropped 2%, Canon lost 2.1%, while automakers Honda and Nissan declined 3.15% and 2.4% respectively.

Meanwhile, shares in Hong Kong sold off amid renewed fears over a “hard landing” in China.

Property developers slumped after Chinese Premier Wen Jiabao reiterated  over the weekend that controlling speculative demand in the property market will be a long-term policy.

China Overseas Land and Investment fell 3%, Sun Hung Kai Properties declined 1.9%, while Sino Land tumbled 3.5%.

Elsewhere, shares in Australia were dragged lower by losses in global miners, amid fears over the global outlook.

BHP Billiton and Rio Tinto shares fell 1.9% and 2.15% respectively, while gold miner Newcrest Mining lost 2.6%.

Looking ahead, the outlook for European stock markets downbeat, as sustained concerns over the debt crisis in the euro zone and global economic growth continued to weigh on market sentiment.

The EURO STOXX 50 futures pointed to a loss of 0.45% at the open, France’s CAC 40 futures declined 0.65%, London’s FTSE 100 futures dipped 0.4%, while Germany's DAX futures pointed to a loss of 0.45% at the open.

Later Monday, a report was to be produced on investor confidence in the euro zone, while ECB President Draghi was due to testify before the European Parliament. 

Investors were also eyeing a meeting of euro zone finance ministers in Brussels, to discuss a plan announced last month to help the region’s indebted nations and banking systems.