Japan's markets fell for a second day on Tuesday after data showing a slowdown in growth in the U.S. services sector made investors wary of taking on risk, while Fast Retailing Co sagged on weaker-than-expected monthly sales.
In Japan, the Nikkei 225 index fell a further 94.51 points, or 0.6%, to 15,814.37
Index-heavyweight Fast Retailing shed 1% and had the biggest downside impact on the Nikkei index, taking about 16 points from the index after its same-store sales at its Uniqlo clothing chain in December disappointed the market.
On Monday, data from the Institute for Supply Management showed the pace of growth in the U.S. services sector slowed for a second straight month in December with business activity expanding at a lower rate and new orders contracting.
Hong Kong’s Hang Seng Index recovered 28.63 points, or 0.1%, to 22,712.78
The index was helped by surge of nearly 10% for exporter Li & Fung, but weakness in the mainland banking sector meant the H-share index still hasn't had a gain in 2014.
Most Chinese banks declined, as a state-run newspaper reported that China is tightening controls on the rapidly growing shadow banking system and has drawn up new regulations to limit the growth in unregulated loans. Bank of China Ltd fell 0.3%, Bank of Communications Co. slipped 0.2%, and China Merchants Bank Co. dropped 0.5%.
Casino stocks rose, as investors have been bidding up the shares since Macau reported an increase of almost 20% in gambling revenue last year. Wynn Macau Ltd jumped 5.2%, MGM China Holdings Ltd advanced 3.4%, and Galaxy Entertainment Group Limited gained 1.9%.
In other markets;
Shanghai’s CSI 300 index backtracked 0.64 points, or 2.3%, to 2,238
Korea’s Kospi index gained 6.16 points, or 0.3%, to 1,959.44
Taiwan’s Taiex Index regained 12.29 points, or 0.1%, to 8,512.30
The Singapore Straits Times Index dipped 2.94 points, or 0.1%, to 3,120.88
In New Zealand, the NZX 50 slipped 5.69 points, or 0.1%, to 4,759.63
In Australia, the S&P/ASX 200 docked 7.89 points, or 0.2%, to 5,316.99
