Asian stocks kicked off the trading week on a downbeat note Monday, with Chinese policy makers seen as less inclined to cut interest rates after data showed real estate prices rising in a majority of major cities.
In Japan, the Nikkei 225 Index gained 8.66 points, or 0.1%, to 9,171.16. The move extended a currency-aided advance made Friday when it closed at its highest level in more than three months.
The Hang Seng Index in Hong Kong shed 11.80 points, or 0.1%, to 20,104.27.
BlueScope Steel Ltd. dropped 1.3% in Sydney after posting a wider-than-expected full-year loss on Monday.
Iron-ore producer Fortescue Metals Group Ltd. slid 2.1%, taking losses made so far this quarter to around 16%. Iron-ore prices hovered around a two-year low of $110 U.S. a tonne.
In Japan, energy firm JX Holdings Inc. fell 1.9% after MUFJ Morgan Stanley cut its rating to neutral from outperform.
Energy companies also fell in Hong Kong on Monday, with China Petroleum & Chemical Corp. down 0.5%, PetroChina Ltd. up 0.1% and China Coal Energy Co. down 1.1%.
Property firms and banks also weighed on the Hong Kong share market, with Henderson Land Development Co. down 1.5% and New World Development Co. down 1.2%.
Other decliners included South Korea’s Samsung Electronics Co., which extended losses from last week with a 1% drop on Monday.
The electronics giant fell 3.8% on Friday after a judge hearing Samsung’s patent-dispute litigation with Apple Inc. reportedly said there were risks for both sides if the case went to verdict.
Sharp Corp, traded down 5.4%, continuing along a recent volatile path amid investor uncertainty about the firm’s financing plans.
Australian telecom group Telstra Corp. retreated 1.6% on an adjusted basis as it began trading without rights to its latest dividend payment.
Both the euro and the dollar held onto Friday’s gains against the Japanese yen in early trading on Monday. Credit Agricole strategists said that they expect further selling of the Japanese currency this week, as a more risk-prone market exits the safe-haven Japanese yen.
Following the yen’s losses, some Japanese exporters gained ground. Pioneer Corp. rose 2.7%, and Honda Motor Co. advanced 0.2%.
Anti-Japanese protests in China intensified on Sunday after a group of Japanese activists landed on an island claimed by both nations, reports from the region said. In some cases, Chinese protesters vandalized Japanese-made cars and Japan retail outlets.
CHINA
Analysts said investors reacted negatively to signs that Beijing will continue, or even extend, its property-tightening measures after a government inspection concluded that the housing market was heating up.
Shanghai’s CSI 300 index declined 11.69 points, or 0.5%, to 2,301.79
Statistics Bureau figures for July, released over the weekend, showed new home prices rising in 49 of 70 Chinese cities, the broadest-based gains in 14 months.
Firms recently reporting poorly received earnings included Aluminum Corp. of China. The shares fell another 1.2% to extend a loss from Friday when the firm reported a loss for the first half of the year.
Mainland China real estate developers were lower in the wake of the weekend price-firming data, with China Vanke Co. ending 1.3% lower and Gemdale Corp. off 2.4%.
Bank of Communications Co. lost 1.7%. China Merchants Bank Co. declined 1.4%. after reporting a higher first-half net profit but lower net interest margin late Friday
In other markets
Markets in Singapore were closed for a holiday
Korea’s Kospi index slid 0.23 points to 1,946.31
Taiwan’s Taiex Index dumped 36.01 points, or 0.5%, to 7,431.91
New Zealand’s NZX index added 21.43 points, or 0.6%, to 3,661.09
Australia’s ASX Index dockecd 5.81 points, or 0.1%, to 4,364.29
