Asian markets retreated Tuesday as lingering uncertainty over the U.S. fiscal outlook and the next tranche of financial aid to Greece prompted a fresh wave of selling, hurting resource stocks and financials in particular.
Japan’s Nikkei 225 Index fell 15.39 points, or 0.2%, to 8,661.05
In Hong Kong, the Hang Seng index plummeted 241.65 points, or 1.1%, to 21,188.65
Investor focus was affixed on the so-called fiscal cliff in the U.S. — heavy tax hikes and spending cuts that would occur without an agreement between Republicans and Democrats by the year’s end.
Greece was another cause for concern, with The Wall Street Journal reporting about differences between euro-zone leaders and the International Monetary Fund on how to reduce the country’s debt to more manageable levels.
Stock losses in Asia spread across various sectors, with resources, financials and internationally exposed firms coming under particular selling pressure.
In Sydney, miners suffered despite overnight gains for some commodities. Fortescue Metals Group Ltd. lost 2%, and Newcrest Mining Ltd. fell 2.3%.
BHP Billiton Ltd lost 1.6% in spite of saying that it expects significant valuation improvements on its shale assets in the U.S.
In Taipei, Taiwan Semiconductor Manufacturing Co. slid 1.1%, and Inotera Memories Inc. 4.4%.
In Seoul, the shipbuilding sector extended recent sharp losses, as Daewoo Shipbuilding & Marine Engineering Co. surrendered 4.6% and Hyundai Mipo Dockyard Co. retreated 2.2%.
Among major Asian financial names, Westpac Banking Corp. gave up 2.2% in Sydney, Nomura Holdings Inc. lost 0.4% in Tokyo, KB Financial Group Inc. shed 0.8% in Seoul. Industrial & Commercial Bank of China Ltd. lost 1.8% in Hong Kong and 1% in Shanghai.
QBE Insurance Group Ltd. plunged 7.5% in Sydney on a string of broker downgrades after it issued a profit warning.
On the upside in Sydney, shares of Incitec Pivot Ltd. rallied 3.8%. The firm posted a 24% drop in annual profit, but its key explosives business nonetheless managed a pre-tax gain.
In Tokyo, Olympus Corp. jumped 5.9% after the company swung to a larger-than-expected profit in the fiscal second quarter.
CHINA
The Shanghai CSI 300 Composite Index descended 39.41 points, or 1.8%, to 2,212.44
The drop in Shanghai and Hong Kong came even as markets awaited the once-in-a-decade leadership changes at the Communist Party Congress, currently in session.
In Hong Kong, PetroChina Co. lost 1.9%, and China Coal Energy Co. dropped 2.4%. In Shanghai, they declined 1.4% and 1.6%, respectively, while Zhongjin Gold Corp. sank 2.7%.
In other markets
Markets in Singapore were closed for a holiday
Korea’s Kospi index slid 11.17 points, or 0.6%, to 1,889.70
Taiwan’s Taiex Index staggered 131.70 points, or 1.8%, to 7,136.05
New Zealand’s NZX 50 shed 13.44 points, or 0.3%, to 3,970.55
Australia’s ASX Index fell 68.23 points, or 1.5%, to 4,379.80
