Asian bourses closed mostly lower on Wednesday following MSCI's decision to add mainland Chinese stocks to its emerging markets index gradually and as oil prices slipped around 2% overnight.
The Nikkei 225 stepped back 91.62 points, or 0.5%, to 20,138.79
The Hang Seng Index slumped 148.46 points, or 0.6%, to 25,694.58
In Japan, Toshiba announced it would be selecting a consortium led by the Innovation Network Corporation of Japan as a preferred bidder for its flash memory unit. The consortium consists of the INCJ, Bain Capital Private Equity and the Development Bank of Japan. Toshiba shares closed 2.2% lower at 323 yen a share.
Against the yen, the U.S. dollar traded at 111.18, off a high of 111.50 seen earlier.
Media reports said the Bank of Japan's minutes for its June meeting reflected that the central bank said the level of government bonds it purchases could fluctuate but this was unlikely to affect guidance. The minutes also showed the BOJ remained cautious on the 2% inflation target.
Australian markets were dragged lower by its energy and materials sub-indexes which were down 2.6% and 2.5% respectively.
In Australia, energy stocks traded in the red given the fall in oil prices, with oil and gas producer Santos closing down by 2%. Major banking stocks were also under pressure, with National Australia Bank declining 2.9% and ANZ down by 1.8%
CHINA
Markets in greater China were mixed following MSCI's decision to include A-shares.
The CSI 300 recovered 41.47 points, or 1.2%, to 3,587.96
MSCI announced it would add China A-shares to its MSCI Emerging Markets Index after rejecting China's previous three attempts. The index giant said it will add 222 China A Large Cap stocks from next year.
In other markets
In Taiwan, the Taiex index gained 25.26 points, or 0.2%, to 10,349.72
In Korea, the Kospi index shed 11.7 points, or 0.5%, to 2,357.53
In Singapore, the Straits Times Index doffed 28.65 points, or 0.9%, to 3,201.77
In New Zealand, the NZX 50 slid 59.42 points, or 0.8%, to 7,527.11
In Australia, the ASX 200 dropped 91.53 points, or 1.6%, to 5,665.72
