Asian markets declined Tuesday as investor focus returned to euro-zone worries after ratings agency Moody’s downgraded its outlook on the European Union, with banks retreating in Sydney after the Reserve Bank of Australia left its key rate unchanged.
Japan’s Nikkei Index eased 8.38 points, 0.1%, to 8,775.01
Hong Kong’s Hang Seng Index tumbled 129.30 points, or 0.7%, to 19,429.91
Markets also turned cautious ahead of Thursday’s European Central Bank policy meeting, and in the absence of cues from the U.S., where markets were closed on Monday for Labour Day.
Auto stocks were mostly lower after August sales data.
Honda Motor Co. slipped 0.2%, while Nissan Motor Co. edged up 0.1%, after both posted lower August sales.
Shares of Toyota Motor Corp. lost 0.3% in the overall weak market, although data out late Monday showed its monthly sales rose 18%.
Sharp Corp. rallied 12.4%, following reports suggesting it will strike a revised investment deal with Taiwan’s Hon Hai Precision Industry Co. at a lower price.
Heavy declines for financial firms weighed in Sydney, after the after the Reserve Bank of Australia left its benchmark rate steady at 3.5%, as widely expected.
Westpac Banking Corp. traded down 2.1% and Australia & New Zealand Banking Group Ltd. fell 2%.
Shares of iron-ore producer Fortescue Metals Group Ltd. sank 4.2% after the miner said it would cut jobs and spending amid a slowing Chinese economy and sharp falls in prices for its key commodity.
A retreat for financials weighed on the market in Hong Kong. Bank of Communications Co. lost 0.8% and China Construction Bank Corp. declined 1%.
Aluminum Corp. of China Ltd. fell 0.3% but still outperformed the wider market, after it dropped its bid to acquire Mongolia’s SouthGobi Resources Ltd. SouthGobi shares tumbled 6.5%. In Seoul, shares of Hyundai Motor Co. gave up 2.3% despite securing a labour deal with its union
In other markets;
Shanghai’s CSI 300 Index fell 23.96 points, or 1.1%, to 2,204.41
Singapore’s Straits Times Index shed 5.67 points, or 0.2%, to 3,011.55
Korea’s Kospi Index docked 5.58 points, or 0.3%, to 1,907.13
Taiwan’s Taiex Index eked ahead 0.82 points to 7,451.35
New Zealand’s NZX Index added 6.99 points, or 0.2%, to 3,676.02
Australia’s ASX 200 Index fell 26.16 points, or 0.6%, to 4,303.51.
