Mainland Chinese stocks tumbled on Monday after a few corporate profit warnings and some downbeat comments on the economy from Premier Wen Jiabao, sending the Shanghai Composite to its lowest finish in more than three years.
Australian and South Korean shares advanced in the wake of strong U.S. earnings reports.
Markets in Japan were closed Monday.
The Hang Seng Index in Hong Kong eked up 28.71 points, or 0.2%, to 19,121.34
South Korea’s market rose and Australia’s index climbed 0.6%, eking out gains on the back of a solid rally on Wall Street Friday, after better-than-expected quarterly results from J.P. Morgan Chase & Co. and Wells Fargo & Co.
Lending a bit of support to the Hong Kong market, heavyweight bank HSBC Holdings PLC rose 0.8% after the upbeat U.S. earnings, while casino operator Sands China Ltd. climbed 2.4%.
South Korean names exposed to the global demand cycle also saw some gains, with LG Chem Ltd. rising 1.7% and car giant Hyundai Motor Co. gaining 1.1% despite a labour strike.
Friday’s advance in the commodities space spurred resource-sector stocks. In Sydney, iron-ore producer Fortescue Metals Group Ltd. climbed 2.4%, and gold extractor Newcrest Mining Ltd. added 1.7%.
Also in Sydney, Rio Tinto Ltd. climbed 0.8% and BHP Billiton Ltd. rose 1% ahead of production reports due Tuesday and Wednesday.
In Hong Kong, shares of Sun Hung Kai Properties Ltd.-- the city’s largest property company by market value -- fell 1% as trading resumed after Friday’s halt. The drop came after its co-chairmen, billionaire brothers Thomas Kwok and Raymond Kwok, were named among five individuals who were charged Friday with offenses linked to bribery and misconduct.
CHINA
The drop came as Suning Appliance Co. and telecom-equipment firm ZTE Corp. each issued profit warnings, adding to worries about corporate performance. Both stocks dropped by the day’s 10% limit in Shenzhen, with ZTE also plunging 16.3% in Hong Kong.
Shanghai’s CSI 300 index retreated 50.90 points, or 2.1%, to 2,399.73
The drop in shares of Suning, one of the China’s largest home-appliance retailers, came after a it reportedly warned that its profit may fall more than previously forecast. Shares of telecom-equipment firm ZTE Corp., likewise, fell after saying its first-half profit fell by between 60% and 80%.
The drop came against the backdrop of macro-economic worries. Chinese Premier Wen Jiabao said Saturday that his nation’s economic rebound wasn’t yet stable and that hardship may continue for a period of time, according to a state-media report.
The comments followed government data released Friday morning showing China’s second-quarter economic growth slowed to 7.6% from a year earlier, compared to 8.1% in the first quarter.
Several medium- and large-capitalization stocks lost heavily on the Chinese stock exchanges.
Sany Heavy Industry Co. lost 5.7% and Sinopec Shanghai Petrochemical Co. shed 5% in Shanghai; Yunnan Copper Co. fell 4.7% and Chongqing Changan Automobile Co. shed 4.3% in Shenzhen.
In other markets
Korea’s Kospi Index gained 4.90 points, or 0.3%, to 1,817.79
Singapore's Straits Times Index grew 3.19 points, or 0.1%, to 2,998.75
Taiwan’s Taiex Index gave back 14.23 points, or 0.2%, to 7,090.04
New Zealand’s NZX index dropped 28.07 points, or 0.8%, to 3,467.34
Australia’s ASX Index advanced 22.86 points, or 0.6%, to 4,105.10
