Olympus falls 29% on hidden losses scandal

Nikkei:8,6551.51 (-111.58) Hang Seng:19,678.47 (+0.58) Shanghai Comp:2,503.84 (-5.96)

ASIAN STOCKS dropped for a second day yesterday. Olympus tumbled 29 per cent after the maker of optical equipment said it hid losses by paying inflated fees to advisers on the 2008 acquisition of Gyrus Group.

Japan’s Nikkei dropped 1.3 per cent as the Olympus scandal weighed on investor sentiment.

In Tokyo, Olympus fell 29 per cent, the most on the MSCI Asia Pacific Index. Its shares may be placed on a watchlist for possible delisting by the Tokyo Stock Exchange, a bourse spokesman said.

Sony sank 4.1 per cent and Nippon Sheet Glass. Shares of Japanese brokerages declined as Olympus’s statement sparked concerns about corporate governance in Japan. Nomura Holdings, the nation’s biggest brokerage, slumped 15 per cent and Rival Daiwa Securities sank 7 per cent.

In Hong Kong, clothier Esprit Holding dropped 0.9 per cent,state-owned China Resources Land sank 3.6 per cent and Little Sheep, which runs a hot-pot restaurant chain, surged 15 per cent.

In Sydney, ANZ Bank climbed 1.8 per cent, Westpac Banking gained 0.8 per cent and National Australia Bank rose gained 1 per cent. – (Bloomberg)