Asian markets retreat after setting new highs

BANGKOK — Asian markets were mostly lower Friday after setting new highs for the year, with Tokyo shares down nearly 1 percent amid news a major Japanese consumer finance firm was unable to pay its debts. European shares fell.

Oil slid below $72 on doubts about the strength of economic recovery and Chinese shares dived more than 3 percent though analysts said the fall was largely profit-taking after big gains. Benchmarks in Britain, France and Germany declined modestly in early trading.

The jolt from Japan, which shows the financial sector remains shaky despite unprecedented government support, added to worries that markets have overestimated the strength of any economic recovery.

Many Asian stock benchmarks hit new highs for the year Thursday after stronger-than-expected U.S. industrial production for August suggested improving demand from the world’s biggest economy for Asia’s mainstay exports.

“The markets have shot up a lot and the prices are getting too high. We may have room for more gains but you have to be careful,” said Linus Yip, a strategist at First Shanghai Securities in Hong Kong. “The economic fundamentals still aren’t so good, and I think we may be getting near the last uptick in this rally.”

Japan’s Nikkei 225 stock average fell 73.26, or 0.7 percent, at 10,370.54 as financial stocks took a hit after consumer lender Aiful Corp. said it will ask its creditors to accept delays in repayment of $3.1 billion in debts. Consumer finance firms fund much of their high-interest lending to consumers by borrowing from banks and other institutions at lower rates.

Hong Kong’s Hang Seng dropped 145.06, or 0.7 percent, to 21,623.45 and China’s Shanghai index lost 97.59, or 3.2 percent, to 2,962.67. Australia’s market shed 0.5 percent. Bucking the trend, South Korea’s Kospi gained 0.3 percent to 1,699.71.

In Tokyo trade, Aiful slumped 27.2 percent. Rival consumer financing firm Takefuji Corp. plunged 9.5 percent.

Wall Street lost ground on Thursday despite a surprise drop in unemployment claims.

The Dow Jones industrial average fell 7.79, or 0.1 percent, to 9,783.92 after hitting a high for the year the day before. The S&P 500 index fell 3.27, or 0.3 percent, to 1,065.49, and the Nasdaq composite index fell 6.40, or 0.3 percent, to 2,126.75.

Futures pointed to a weak open Friday in the U.S. Dow futures were down 16, or 0.2 percent, at 9,783 and S&P futures slipped 0.5, or 0.1 percent, to 1,067.50.

Oil prices weakened in Asia, dampened by concerns that a recovery in the U.S. economy may be slower than expected.

Benchmark crude for October delivery fell $1 to $71.47 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 3 cents to settle at $72.47 on Thursday.

In currencies, the dollar rose to 91.27 yen from 91.03 yen. The euro fell to $1.4664 from $1.4741.

AP Business Writer Jeremiah Marquez contributed to this report from Hong Kong.