Asian stocks fell Wednesday as concerns about growth in China’s services sector added to the selling pressure amid caution ahead of U.S. jobs data later in the week, dragging on Hong Kong and Australian equities in particular.
In Japan, the Nikkei 225 faded 43.18 points, or 0.3%, to 14,055.56
Hong Kong’s Hang Seng Index jettisoned 511.34 points, or 2.5%, to 20,147.31
The performance came ahead of a U.S. holiday Thursday, leading into the key nonfarm payrolls data for June due on Friday.
Shares of footwear major Belle International Holdings Ltd. skidded 4.2%, China Coal Energy Co. slumped 6.6% and China Overseas Land & Investment Ltd. dropped 4% in Hong Kong, accelerating their losses after the Chinese data.
In Tokyo trading, utility Tokyo Electric Power Co. plunged 10.3% a day after it soared 19%, with the Nikkei newspaper reporting its plans to restart a nuclear power plant looked "premature" and hinted of "haste."
Shares of Suntory Beverage & Food Ltd. rose modestly as they began trading in Tokyo after raising nearly $4 billion U.S. from an initial public offering, Japan’s largest this year. The stock ended at ¥3,145 ($31.30 U.S.), up from its IPO price of ¥3,100.
Mitsubishi UFJ Financial Group Inc. gained 0.8% in choppy trading action, on plans to buy a majority stake in Thai lender Bank of Ayudhya PCL for about $5.6 billion U.S.
Also posting gains, Nissan Motor Co. climbed 0.6%, and Honda Motor Co. rose 0.4%, after reporting an increase in their U.S. sales for June.
The gains were aided as the U.S. dollar rose above the ¥100 level for the first time since early June. The greenback had moved in the mid-¥99 range during the previous Tokyo stock session.
Shares of internationally-exposed South Korean firms also suffered losses, with Samsung Electronics Co. dropping 2.6% and LG Electronics Inc. sliding 3.8%.
Mining issues and banks pulled back in Sydney after Tuesday’s advances. Rio Tinto Ltd. skidded 3%, and BHP Billiton Ltd. slumped 3.2%, while National Australia Bank Ltd. gave up 1.9%.
Data released earlier on Wednesday showed retail sales grew a slower-than-expected 0.1% in May. Trade data surprised positively, meanwhile, with the country recording a trade surplus of 670 million Australian dollars ($615 million U.S.) during the month, as exports grew 4% from a year earlier, while imports rose 2%.
Shares of a few regional energy producers rose as Nymex August crude-oil futures briefly climbed past the $102-a-barrel level during Asian trading hours.
PetroChina Co. gained 2.2% in Shanghai, Linc Energy Ltd. rose 4.1% in Sydney and Inpex Corp. added 2.8% in Tokyo.
CHINA
The Shanghai Shenzhen CSI 300 sifted off 18.15 points, or 0.8%, to 2,203.83
An official measure of the Purchasing Managers’ Index in China’s services sector eased to 53.9 in June, down from 54.3 in May. In a separate survey by HSBC, the services PMI ticked up to 51.3 from 51.2 in May.
HSBC’s chief China economist Hongbin Qu, however, said growth in the sector was expected to slow in coming months as the effect of value-added-tax reforms filter through.
n Shanghai, property firm Gemdale Corp. retreated 3.1%, and China Southern Airlines Co. dropped 2.9%.
In other markets;
Taiwan’s Taiex Index erased 104.44 points, or 1.3%, to 7,911.42
Singapore’s Straits Times Index stepped back 43.83 points, or 1.4%, to 3,129.49
Korea’s Kospi Index doffed 30.36 points, or 1.6%, to 1,824.66
In New Zealand, the Exchange 50 Gross Index docked 7.50 points, or 0.2%, to 4,450.76
In Australia, the S&P/ASX 200 slid 89.88 points, or 1.9%, to 4,744.13
