Mainland Chinese stocks suffered their worst drop in several months on Monday as property and construction-related sectors got slammed after Beijing imposed fresh measures to cool home prices.
In Japan, the Nikkei 225 Index gained 45.91 points, or 0.4%, to 11,652.29.
In Hong Kong, the Hang Seng index fell 342.41 points, or 1.5%, to 22,537.81
The deep losses rubbed off on most other markets in the region, and on Hong Kong-listed Chinese developers in particular. The Japanese market was an exception, with real-estate shares extending their recent surge on an improved outlook amid sustained hopes for a policy boost to the economy.
Chinese developers also got hammered in Hong Kong, with China Resources Land Ltd. losing 8.9% and China Overseas Land & Investment Ltd. shedding 7.1%, while Guangzhou R&F Properties Ltd. slumped 10.9%.
Shares of Mitsui Fudosan Co. climbed 2.4% and Sumitomo Realty & Development Co. jumped 3.9%, while Mitsubishi UFJ Financial Group Inc. rose 1.5%.
Miners dropped during the session after the precious metal’s prices on Friday ended at their worst level since July last year, and copper futures fell to a three-month low.
Rio Tinto Ltd. fell 3.7%, BHP Billiton Ltd. — trading ex-dividend — lost 3.5%, and gold miner Newcrest Mining Ltd. shed 1.1%.
Hong Kong-listed Russian metals giant United Co. Rusal PLC lost 3.4% after the firm said that it will cut 300,000 tons from its aluminum output by the end of 2013.
Market major Samsung Electronics Inc. slipped 0.3%, less than the broader market. The performance follows a U.S. court ruling Friday that slashed the amount of damages the firm has to pay arch-rival Apple Inc. by around 43%, to just under $600 million U.S.
CHINA
The Shanghai CSI 300 Composite 300 index tumbled 123.12 points, or 4.6%, to 2,545.72
The drop came after the State Council, China’s cabinet, late on Friday announced restrictions, including higher down-payments and mortgage rates on second homes in cities that have seen steep rises in property prices. The policy moves also include a 20% capital gains tax on existing-home sales
The fresh curbs, which come ahead of Tuesday’s start of the annual session of the National People’s Congress — China’s parliament — were however, unlikely to be a turning point for Chinese economic policy, said one expert.
Stocks that dropped by the day’s permissible limit of 10% included Poly Real Estate Group Co., Shanghai Industrial Development Co. and Anhui Conch Cement Co. in Shanghai; in Shenzhen, China Vanke Co. and Cofco Property Group Co. fell by the day’s 10% limit.
In other markets
In Korea, the Kospi Index returned from holiday to shave off 13.34 points, or 0.7%, to 2,013.15
In Taiwan, the Taiex Index gave back 97.29 points, or 1.2%, to 7,867.34
The Singapore Straits Times Index erased 29.55 points, or 0.9%, to 3,239.95
In New Zealand, the NZX 50 index docked 64.39 points, or 1.5%, to 4,253.60
In Australia, the S&P/ASX retreated 75.61 points, or 1.5%, to 5,010.52
