Japanese shares sank to a more-than-three-week low on Monday, as weak manufacturing data from China and the unimpressive result of the quarterly Tankan survey drained investor confidence to start a new quarter.
The Nikkei 225 Index declined 73.65 points, or 0.8%, to 8,796.51, after losing about 1.5% in the July-September quarter
Markets in Hong Kong, Shanghai and Korea had the day off
The drop in Tokyo came after the Bank of Japan’s quarterly Tankan survey showed an index of business confidence of large manufacturers fell to minus three from a minus one reading in the June survey.
Data released by China’s National Bureau of Statistics Monday showed that country’s manufacturing Purchasing Managers’ Index improved to 49.8 in September from 49.2 in August. But it remained below the 50-point level, indicating deterioration in activity.
Metals and real estate stocks took the hardest hits in Tokyo. Shares of JFE Holdings Inc. declined 2.5% and Tokyo Steel Manufacturing Co. slid 2.3%, while Mitsubishi Estate Co. and Mitsui Fudosan Co. shed 2.7% and 2.1%, respectively.
The automobile sector suffered further losses on concern about the fallout from recent anti-Japan protests in China.
Toyota Motor Corp. lost 1.7% and Nissan Motor Co. got pummeled 1.5%.
Shares of NGK Insulators Ltd. plunged 10.4% after the company Friday cut its fiscal-year net profit view.
Banks were mildly higher ahead of a decision on interest rates by the Reserve Bank of Australia, with National Australia Bank Ltd. gaining 0.2% and Westpac Banking Corp. strengthening 0.4%.
Shares of mining and metals firm Arrium Ltd soared 24.8% on news the company had rejected an unsolicited offer from a consortium that includes South Korea’s Posco
In other markets
The Singapore Straits Times Index dipped 2.48 points, or 0.1%, to 3,057.86
Taiwan’s Taiex Index skidded 39.44 points, or 0.5%, to 7,675.72
New Zealand’s NZX index let go of 4.12 points, or 0.1%, to 3,830.03
Australia’s ASX Index picked up 1.61 points to 4,388.63
