Asian stocks skidded on Tuesday amid lingering worries about Spain’s debt troubles, with mainland Chinese and Hong Kong stocks dropping after data showing foreign direct investment in the mainland continued to decline.
In Japan, the Nikkei 225 Index dipped another 5.93 points, or 0.1%, to 9,464.71
In Hong Kong, the Hang Seng Index slid 48.33 points, or 0.2%, to 20,562.30
Shares of SouthGobi Resources Ltd. slumped 10% in Hong Kong after the company announced that its auditors Deloitte & Touche LLP resigned with effect from April 2.
The company also said Mongolia has asked the company to suspend exploration and mining activity in the country, in relation with Aluminum Corp. of China Ltd., or Chalco’s proposed takeover bid for the company. Chalco shares fell 1.6% in Hong Kong and 1% in Shanghai.
Meanwhile, one expert said higher Spanish bond yields broadly translate to a weaker euro, and companies trading with euro-denominated payment schemes -- such as Hong Kong-listed clothing company Esprit Holdings Ltd., which has a large operation in Germany and receives a large part of revenues in euros -- will see their results suffer. Esprit stock fell 1.2% in Hong Kong.
Auto makers were among the Japanese exporters that finished lower amid the yen’s recent firmness. Honda Motor Co. fell 1.9% and Toyota Motor Corp. declined 0.9%.
Mining stocks lost ground in Australia, with Rio Tinto Ltd. sliding 0.8% after reporting a a modest 2% increase in first-quarter iron ore shipments and a sharp fall in copper production during the first quarter.
Rival BHP Billiton Ltd. lost 0.5%.
Shares of Toshiba Tec Corp. jumped 6.9%, after a Nikkei news report said it would buy IBM Corp.’s point-of-sale terminal business
CHINA
Data released Tuesday showed foreign direct investment into China fell 6.1% in March from the year-earlier period to $11.76 billion, reflecting the impact of the European debt crisis and slowing Chinese economic growth
In Shanghai, the CSI 300 Index stumbled 32.16 points, or 1.3%, to 2,541.88
Chinese banks were among the notable losers. China Construction Bank Corp. dropped 1.1% and Bank of Communications Co. shed 0.2% in Shanghai; in Hong Kong, CCB lost 2%, while BoCom ended flat.
Chinese airline stocks extended their drop after both China Southern Airlines Co and China Eastern Airlines Corp. issued profit warnings recently. China Southern fell 1.5% and China Eastern gave up 1.9% in Shanghai; in Hong Kong, they dropped 3.5% and 3.9%, respectively.
In other markets;
Korea’s Kospi Index docked 7.33 points, or 0.4%, to 1,985.30
The Taiex index in Taiwan collapsed 143.99 points, or 1.9%, to 7,585.87
Singapore’s Straits Times Index doffed 5.53 points, or 0.2%, to 2,986.59
New Zealand’s NZX 50 Index actually gained 3.88 points, or 0.1%, to 3,480.54
Australia’s S&P/ASX 200 Index dropped 13.55 points, or 0.3%, to 4,288.79
