Hong Kong’s stock market capped its worst month in more than two years Tuesday as pro-democracy protests in the city swelled again, while shares in Tokyo also fell in reaction to a weaker dollar and a decline in industrial production.
In Tokyo, the Nikkei 225 surrendered 137.12 points, or 0.8%, to 16,173.52, while the U.S. dollar traded at 109.34 against the Japanese yen, compared with ¥109.49 late Monday in New York.
The losses came after Japan’s industrial production unexpectedly fell 1.5% in August as consumption slowed following a sales tax increase. The decrease in output after adjustment for seasonal factors came after a 0.4% increase in July.
In Hong Kong, the Hang Seng Index plummeted 296.23 points, or 1.3%, to 22,932.98. The index lost 7.3% in September.
The Hong Kong dollar, which is loosely pegged to the U.S. dollar, on Tuesday hit 7.7692 against the greenback, the weakest level in more than two years. It recouped some losses and was last at HK$7.7669.
Pro-democracy demonstrations, which have drawn tens of thousands of protesters into the streets in recent days, further hurt sentiment that was already sagging under the weight of a slew of reports showing China’s economic growth was falling short of expectations.
The latest reading on Chinese manufacturing activity suggested growth remained sluggish. HSBC Holdings PLC and data provider Markit revising their reading on Chinese manufacturing activity for September to 50.2 — unchanged from August — and below its preliminary reading of 50.5.
Meanwhile, protesters in Hong Kong vowed to continue until their demands were met ahead of the start of China’s National Day holiday on Wednesday.
CHINA
Shares on mainland China closed at their highest level in 19 months on Tuesday, the last trading day ahead of a weeklong holiday.
Shanghai’s CSI 300 index nicked ahead 3.19 points, or 0.1%, to 2,450.99.
Performance on the mainland has diverged from that in Hong Kong, which analysts attribute to the anticipated launch of a cross-market stock investment program that will channel as much as 300 billion yuan ($48.8 million U.S.) in funds into domestic Chinese shares.
The fourth plenum session of the 18th central committee of the Communist Party in October may also deliver more encouraging headlines about reforms, they say.
In other markets;
In Korea, the Kospi index inched down 6.51 points, or 0.3%, to 2,020.09
The Taiex index in Taiwan eked up 6.16 points, or 0.1%, to 8,966.92
In Singapore, the Straits Times STI Index dipped 12.98 points, or 0.4%, to 3,276.74
In New Zealand, the NZX 50 slipped 4.47 points, or 0.1%, to 5,255.04
Australia’s S&P/ASX 200 moved up 28.60 points, or 0.5%, to 5,292.81
