Chinese banks tumbled in Hong Kong on Thursday, providing an extra weight for a region already pressured by signs of more debt trouble in Europe and U.S. stock losses.
In Japan, the Nikkei 225 Index fell 52.38 points, or 0.5%, to 9,767.61, after clocking up its worst one-day fall for the year on Wednesday when the index moved back below the key 10,000 level for the first time in almost a month.
In Hong Kong, the Hang Seng Index returned from holiday to slide 197.98 points, or 1%, to 20,593.
Banks were notably weak in Hong Kong, with Bank of Communications Co. down 3.2%, Bank of China Ltd. lower by 1.6%, Agricultural Bank of China Ltd. falling 2.6% and Industrial & Commercial Bank of China Ltd. (ICBC) giving up 1.6%.
CCB’s Hong Kong shares traded down 2% Thursday.
In Hong Kong, Air China’s Hong Kong H-shares lost 1.5%, but China Eastern’s were up 2%.
A drop in commodity prices overnight hit other Asia resource firms Thursday, with Tokyo-listed JFE Holdings Inc. down 2%, and Sumitomo Metal Metal Mining Co. also lower by 1.2%.
Likewise, miners were also notable decliners in Australia, where BHP Billiton Ltd. fell 0.9%, and Rio Tinto Ltd. retreated 1.7%.
Honda Motor Co. lost 1.1%, Fuji Heavy Industries Ltd. ell 0.8%, and Nikon Corp. surrendered 1.9% after a downgrade to hold from buy at BNP Paribas.
Japanese shipping shares also sank, with Mitsui O.S.K. Lines Ltd. down 2.3%, and Nippon Yusen K.K. dropping 1.2% in Tokyo.
In Hong Kong, ports operator China Merchants Holdings International Co. fell 3.6%, while rival Cosco Pacific Ltd. fell 1.4%.
In Seoul, STX Pan Ocean Co. Ltd. dropped 3.8% and Hyundai Heavy Industries Co. Ltd lost 1.3% among the major decliners
CHINA
In Shanghai, the CSI 300 Index returned from holiday to gain 57.93 points, or 2.4%, to 2,512.83, with some reports pegging support from a move to more than double the quota for foreign investment to $80 billion U.S.
Chinese Premier Wen Jiabao said Tuesday that it was too easy for China’s state-run banks to make profits, and that the government needs to break their "monopoly."
Analysts at Bernstein Research said that Wen’s comments likely wouldn’t put state banks’ overall dominance of the financial sector at risk or signal a government-sponsored "breakup."
But commodity stocks moved off lows in Hong Kong and gained in Shanghai, with Aluminum Corp. of China Ltd. up 3.7% in Shanghai but down 0.3% in Hong Kong.
Jiangxi Copper Co. was up 2.7% in Shanghai, but down 1.2% in Hong Kong.
Other gainers in Shanghai included Citic Securities Co., up 5.8%, and real-estate major Gemdale Corp., up 1%.
Airlines did well, given weaker crude-oil prices since the last Shanghai equities session, with Air China Ltd. climbing 1.9%, and China Eastern Airlines Corp. rising 1.7%.
In other markets;
Korea’s Kospi Index gained 10.16 points, or 1%, to 2,049.28
The Taiex index in Taiwan shed 121.03 points, or 1.6%, to 7,639.82
Singapore’s Straits Times Index inched up 1.16 points to 2,986.20
New Zealand’s NZX 50 Index gave back 12.44 points, or 0.4%, to 3,467.98
Australia’s S&P/ASX 200 Index stumbled 14.02 points, or 0.3%, to 4,319.85
