Most Asian markets fell, with sentiment hit by further evidence of cooling in Chinese manufacturing activity, while the Federal Reserve disappointed investors hoping for new major stimulus measures.
A weaker yen, meanwhile, helped lift Japanese stocks.
Japan’s Nikkei 225 Index added 71.76 points, or 0.8%, to close at 8,824.07
The Hang Seng Index in Hong Kong toppled 253.78 points, or 1.3%, to 19,265.07
Commodity-tied firms were notable decliners following the data. In Australia, iron-ore producer Fortescue Metals Group Ltd. traded down 2.4%, and copper producer PanAust Ltd. fell 3.1%, while in Hong Kong, China Coal Energy Co. gave up 3.5%.
Energy firms were also mainly weaker across Asia, as Nymex crude-oil futures traded below $81 U.S. a barrel in the electronic session.
Sydney-listed Santos Ltd. sank 4.4%, and Cnooc Ltd. tumbled 3.2% in Hong Kong.
Chinese financials also came under selling pressured. Bank of Communications Co. dropped 1.9% in Hong Kong, while in Shanghai, New China Life Insurance Co. slumped 3.3% and Haitong Securities Co. lost 3.8%.
Property firms were hit hard, as Agile Property Holdings Ltd. fell 4.6%, China Resources Land Ltd. sank 5.3%, while Evergrande Real Estate Group’s shares plunged 11.4%.
Losses for exporters weighed in Seoul. Samsung Electronics Co. dropped 2%, and Kia Motors Corp. lost 1.5%.
But while much of the region’s markets moved lower, a weaker Japanese yen supported major Tokyo-listed exporters.
Toshiba Corp. put on 1.4%, Kyocera Corp. climbed 2.6%, and Panasonic Corp. gained 2.8%, as the euro moved above ¥100, and with the dollar also rising against the yen overnight.
Japanese car makers also extended recent gains, with Nissan Motor Co. up 1.9%, and Toyota Motor Corp. adding 1.2%.
Shares of Honda Motor Co. climbed 3.5% after Credit Suisse raised its price target on the shares, one day after a ratings upgrade from Nomura.
Recently battered shares of Renesas Electronics Corp. added 3.1% after a Dow Jones Newswires report that Hitachi Ltd., NEC Corp. and Mitsubishi Electric Corp. planned to provide Renesas with ¥50 billion ($630 million U.S.) in aid.
Mitsubishi Electric advanced 1.3%, Hitachi slipped 0.6% and NEC shares fell 0.8%
CHINA
Stocks mostly extended losses after an initial reading of HSBC’s China manufacturing Purchasing Managers’ Index showed activity slowing in June from the previous month.
HSBC China chief economist Hongbin Qu said the sharp fall in prices and moderation of new orders pointed to weak domestic demand.
Shanghai’s CSI 300 Composite Index fell 40.43 points, or 1.6%, to 2,512.19
Chinese financials also came under selling pressured. Bank of Communications Co. dropped 1.9% in Hong Kong, while in Shanghai, New China Life Insurance Co. slumped 3.3% and Haitong Securities Co. lost 3.8%.
In other markets
Korea’s Kospi Index shed 14.97 points, or 0.8%, to 1,889.15
Singapore's Straits Times Index lost 25.53 points, or 0.9%, to 2,830.15
Taiwan’s Taiex Index dropped 55.58 points, or 0.8%, to 7,279.05
New Zealand’s NZX index tripped 35.40 points, or 1%, to 3,409.39
Australia’s ASX Index slipped 44.88 points, or 1.1%, to 4,087.57
