Mainland Chinese stocks fell Tuesday to lead most major Asian markets lower amid worries Beijing may not ease policy to immediately address an economic slowdown.
The Nikkei 225 declined 23.79 points, or 0.2%, to close Tuesday at 14,758.42
In Hong Kong, the Hang Seng Index doffed 59.53 points, or 0.3%, to 22,930.28
Japanese equities retreated a day after the after Nikkei Stock Average ended at its highest level in more than five years as the yen strengthened to drop, while South Korean shares advanced on bargain buying in beaten-down automobile firms.
In Japan, the best performing stock market in Asia this year, exporters pulled back as the U.S. dollar slipped to around 101.50 yen, down from about 101.81 yen late in North America on Monday.
Shares of Fanuc Corp. fell 1.6%, Bridgestone Corp. lost 1.7%, and Nikon Corp. slid 1.7%.
On the upside, shares of Hino Motors Ltd. rose 1.3%, and those of Isuzu Motors Ltd. climbed 1.8%. Their advance followed a Nikkei newspaper report that the two firms had increased their budget outlays for the current financial year after posting record-high profits in the last fiscal year.
Citizen Holdings Co. rose 0.6% after forecasting a return to profit this financial year.
Astellas Pharma Inc. added 2.9% on news the company plans to reorganize its research operations.
While the stronger yen weighed on Tokyo, it also helped lift shares of some South Korean exporters that had recently suffered on concern their global competitiveness would be hurt amid an improving outlook for their Japanese rivals.
Hyundai Motor Corp. gained 2.7%, and Kia Motors Corp. climbed 3.8%, while shipbuilder Hyundai Heavy Industries Co. advanced 0.8%.
In Hong Kong, shares of United Co. Rusal PLC gained 1.5% after the world’s largest aluminum producer reported a narrower loss in the first quarter.
Some Asian gold miners lost ground after the metal’s futures weakened for a third straight session in the U.S. overnight.
Newcrest Mining Ltd. dropped 2.5% in Sydney, while Zijin Mining Group Co. lost 1.3% in Hong Kong as well as Shanghai.
CHINA
In Shanghai, the CSI 300 Index fell 37.43 points, or 1.5%, to 2,493.31
The drop comes a day after April data on industrial output and retail sales was broadly interpreted as a slow start to the second quarter for the Chinese economy.
Chinese property stocks were hit after Reuters cited local media as reporting that Beijing has tightened regulations for developers looking to obtain pre-sales licenses for new housing projects.
Shares of Gemdale Corp. slid 3.3% and Poly Real Estate Group Co. dropped 3% in Shanghai, China Vanke Co.’s yuan-denominated stock shed 2.6% in Shenzhen and China Resources Land Ltd. lost 3% in Hong Kong.
In other markets;
Singapore’s Straits Times Index inched forward 3.80 points, or 0.1%, to 3,432.76
Taiwan’s Taiex Index added 3.50 points to 8,251.82
Korea’s Kospi Index gained 20.13 points, or 1%, to 1,968.83
The New Zealand Exchange 50 Gross Index erased 25.78 points, or 0.6%, to 4,645.86
Australia’s S&P/ASX took on 10.65 points, or 0.2%, to 5,220.99
