Most Asian markets fell Monday as separate data from the government and HSBC painted a contrasting picture of manufacturing activity in China, while Japanese shares plunged as a firm yen prompted selling in exporters.
The Nikkei 225 capsized 512.72 points, or 3.7%, to 13,261.82
In Hong Kong, the Hang Seng Index fell 109.97 points, or 0.5%, to 22,282.19
The session marked the third time the Nikkei had tumbled more than 400 points in a single session after May 23, when the benchmark plunged 7.3%, or 1,143 points. Japanese stocks ended May with a mild loss following gains in each of the previous nine months.
Monday’s losses came even as Japanese government bond yields continued to drop. The yield on the 10-year JGB fell as much as six basis points to 0.81%.
Shares of Fast Retailing Co. tumbled 6.3%, and Subaru-maker Fuji Heavy Industries Ltd. skidded 4.2%, while Sharp Corp. plunged 10.3%.
Mitsubishi Motors Corp. lost 6.9%, even as Reuters cited European media as saying Friday that France’s Renault SA was exploring a possible cooperation deal with the Japanese firm.
The steep losses in Tokyo also came as a survey by the Ministry of Finance found that capital-investment spending by Japanese firms dropped 3.9% in the first quarter of this year from the year-ago period.
South Korea’s PMI reading for May slipped to 51.1 from 52.6 in April, while the Taiwanese PMI slumped to 47.1 last month from 50.7 in April.
South Korean stocks fell on the back of losses on Wall Street, with GS Engineering & Construction Corp. losing 1.3%, Hyundai Securities Co. shedding 1.7% and Korea Electric Power Corp. sliding 2.1%.
Resource-sector stocks fell after crude oil and gold prices suffered losses Friday, with the China PMI data also having an effect.
In Sydney, shares of mining heavyweight BHP Billiton Ltd. fell 2.3% and Fortescue Metals Group Ltd. slid 2.7%.
Shares of Rio Tinto Ltd. lost 2.5% after Dow Jones Newswires reported that private-equity firm Blackstone Group LP and Glencore Xstrata PLC are among the suitors considering buying Rio Tinto PLC’s Canadian iron-ore operations.
CHINA
A Chinese government-sponsored survey on manufacturing activity in the country, released on Saturday, rose to 50.8 in May from 50.6 in April, indicating an improvement in business conditions at the nation’s factories.
In Shanghai, the CSI 300 Index dropped 3.81 points, or 0.2%, to 2,602.62
However, the final result of a separately-released survey by HSBC showed China’s Purchasing Managers; Index (PMI) dropped to 49.2 in May from 50.4 in April. A reading below 50 indicates a deterioration in activity.
A retreat for Chinese banks weighed in Hong Kong, with Industrial & Commercial Bank of China Ltd. losing 1.3% and Bank of Communications Co. dropping 0.8%.
In other markets;
Singapore’s Straits Times Index stepped back 20.29 points, or 0.6%, to 3,291.08
In Korea, the Kospi Index dipped 11.48 points, or 0.6%, to 1,989.57
Taiwan’s Taiex Index stumbled 53.78 points, or 0.7%, to 8,201.02
Australia’s S&P/ASX docked 38.26 points, or 0.8%, to 4,888.31
Markets in New Zealand were closed for a holiday
