Mainland Chinese stocks ended sharply lower to lead most Asian markets down Monday, after Beijing failed to ease monetary controls over the weekend and as broker downgrades of the country’s growth highlighted economic worries.
In Japan, the Nikkei 225 Index erased 6.29 points, or 0.1%, to 8,885.15, after data showed the country’s economy grew 1.4% in the quarter ended June 30 from the preceding three months.
The annualized, seasonally-adjusted data was weaker than estimates for a 2.7% expansion, and also well below the upwardly revised forecast of a 5.5% growth in the January to March period.
The Hang Seng Index in Hong Kong doffed 54.76 points, or 0.3%, to 20,081.36
Several manufacturers fell in Tokyo after the weak gross domestic product data. Yokohama Rubber Co. lost 1.2%, Fanuc Corp. shed 1.2% and Fujitsu Ltd. retreated 1%.
Shares of Citizen Holdings Co. rallied 4.2% after a Nikkei report Saturday that it had bought the LCD operations of U.S. firm Micron Technology Inc.
Australia’s BlueScope Steel Ltd. soared 34.6%, helping lift the broader market in Sydney, while Japan’s Nippon Steel Corp. climbed 0.6% in downbeat Tokyo. The gains came after the two steel makers said that they would form a building-products alliance.
Newcrest Mining Ltd. jumped 4.4% in Sydney after reporting a 23% increase in fiscal-year net profit from higher gold prices.
CHINA
Shanghai’s CSI 300 index retreated 47.82 points, or 2%, to 2,351.93, as policy makers didn’t respond to expectations that a reduction in bank reserve requirement ratios, or interest rates, was imminent.
Brokerage firms were among the worst hit in Shanghai amid a weak market outlook and worries over earnings reports. Citic Securities Co. plunged 9.1% and Haitong Securities Co. skidded 8.6% in Shanghai, while Guoyuan Securities Co. lost 8.2% in Shenzhen.
Property shares also lost ground on worries Beijing could maintain its tight regulatory stance toward the sector.
Shares of China Vanke Co. skidded 4.2% in Shenzhen, Poly Real Estate Group Co. gave up 4.1% in Shanghai and China Resources Land Ltd. slid 2.7% in Hong Kong.
In other markets
Taiwan’s Taiex Index deducted 4.82 points, or 0.1%, to 7,436.30
Singapore’s Straits Times Index picked up 10.61 points, or 0.4%, to 3,064.81
Korea’s Kospi Index subtracted 13.96 points, or 0.7%, to 1,932.44
New Zealand’s NZX index inched ahead 17.17 points, or 0.5%, to 3,594.96
Australia’s ASX Index eked up 5.99 points, or 0.1%, to 4,283.29
