Asian shares were under pressure after a choppy session Monday, as investors weighed political developments in Europe and China’s weekend move to loosen monetary policy.
Japan’s Nikkei 225 Index regrouped 20.53 points, or 0.2%, to close the week’s first session at 8,973.84
The Hang Seng Index in Hong Kong dumped another 229.59 points, or 1.2%, to 19,735.04
Hong Kong stocks skidded 5.3% last week, Japanese stocks lost more than 4.5%, Korean stocks fell 3.6%, and Australian stocks dropped 2.5%, for their worst weekly fall so far this year.
The losses came as market concerns over the euro-zone were revived by elections in France and Greece, where voters massively rejected austerity measures.
On Sunday, Alexis Tsipras, the leader of Greek radical-left party, Syriza, said he would not join a coalition government to implement a harsh and deeply unpopular austerity program.
The election in Greece left the country without a majority needed to implement the program and conform with the lending terms imposed by international creditors, with the nation now likely headed back to the polls
Property companies first rose in Hong Kong after the reserve ratio cut but lost gains by the close. Hang Lung Properties Ltd. held onto a 0.2% advance, while China Overseas Land & Investment Ltd. fell 0.3% and Wharf Holdings Ltd. dropped 0.1%
But Hong Kong firms that generate a significant proportion of their sales in Europe lost ground as the euro traded below $1.29 U.S., with apparel firm Esprit Holdings Ltd. slumping 5.8%.
Japanese firms exposed to Europe also traded lower Monday, including car maker Nissan Motor Co., which saw its shares fall 2%, even after reporting late Friday that its net profit more than doubled.
Takeda Phamaceutical Co. fell 3.2%, after announcing a hefty drop in fiscal-year profit due to restructuring costs linked to the firm’s acquisition of Swiss pharmaceutical Nycomed.
Panasonic Corp. managed to regain some ground lost earlier in the session, trading up 1.4%. On Friday, the firm reported a record fiscal-year loss late Friday.
Shares of Sony Corp. hovered around multi-decade lows but also pulled back from earlier losses to advance 1.7%.
Heavyweight Japanese retailer Fast Retailing Co., owner of the Uniqlo casual apparel brand, rose 2.3%, offering some support for the Nikkei Average.
Japanese financials gained broadly after losing ground on Friday after banking group J.P. Morgan Chase & Co. unveiled a surprisingly large trading loss.
Among the gainers, Daiwa Securities Group Inc. climbed 1.1%, Matsui Securities Co. rose 1.2%, and Sumitomo Mitsui Financial Group Inc. moved 1% higher. However, Resona Holdings Inc. dropped 4.3%.
Banks mostly gained in Australia as well, with Australia & New Zealand Banking Group Ltd up 0.7%, and National Australia Bank Ltd. up 1%.
CHINA
Saturday, the People’s Bank of China introduced more monetary easing by cutting the amount that banks are required to hold as reserves, a move that Deutsche Bank analysts linked to the weaker data.
Shanghai’s CSI 300 Composite Index erased 21.38 points, or 0.8%, to 2,615.53
Deutsche Bank analysts said that the RRR cut should mean about 400 to 500 yuan of extra liquidity for the Chinese economy which it believes will boost infrastructure project financing and first time buyer mortgages.
In other markets;
Singapore's Straits Times Index docked 19.28 points, or 0.7%, to 2,864.12
Korea’s Kospi Index lost 3.40 points, or 0.2%, to 1,913.23
Taiwan’s Taiex Index fell 24.19 points, or 0.3%, to 7,377.18
New Zealand’s NXZ Index inched forward 7.29 points, or 0.2%, to 3,555.36
Australia’s ASX Index edged up 11.92 points, or 0.3%, to 4,296.99
