Japanese stocks were lower on Monday, as a stronger yen and the unrest in Ukraine weighed on sentiment in Tokyo, while Shanghai fell on concerns over a glut of new stock offerings.
Japan’s Nikkei 225 dumped 141.03 points, or 1%, to 14,288.23
Hong Kong’s Hang Seng Index gave back 91 points, or 0.4%, to 22,132.53.
The U.S. dollar was last at ¥102.13, compared with ¥102.19 late Friday in New York, with the yen strengthening as U.S. and European governments planned to ramp up sanctions against Russia as early as Monday.
The move comes as pro-Russian rebels in eastern Ukraine on Sunday paraded Western military observers as hostages.
Also weighing on sentiment in Japan was a disappointing earnings report from Honda Motor, which lost 4.3% after its guidance missed expectations. The company said that it expects its net income to rise 3.6% this fiscal year, much slower growth than in the recently ended fiscal year, when its net income soared by 56%.
Also in Tokyo, shares in Japan Display sank 12.1% after the Apple supplier lowered its annual profit target just over a month after its mid-March listing.
China Construction Bank bucked the negative trend in Hong Kong’s broader market. The lender’s stock was up 0.8% after it reported that its first-quarter net profit rose by 10% from a year earlier, boosted by interest income and growth in fees and commissions.
China Minsheng Bank gained 0.3% after it reported a 15% year-over-year increase in its first-quarter net profit.
Investors were also looking ahead to potentially market-moving events later in the week.
In Asia, the main piece of economic data will be Chinese manufacturing numbers for April, out Thursday; while out of the U.S., investors will be looking ahead to the Federal Reserve’s policy meeting, which concludes Wednesday, and the monthly jobs report at the end of the week.
CHINA
The Shanghai CSI 300 slid 32.86 points, or 1.5%, to 2,134.97
China’s securities regulator announced a resumption of initial public offerings late on Friday, reigniting concerns that new listings will drain funds from the weak stock market
In other markets;
Taiwan’s Taiex Index gained 35.59 points, or 0.4%, to 8.809.71
Singapore’s Straits Times Index faded 24.86 points, or 0.8%, to 3,242.71
Korea’s Kospi Index dipped 2.40 points, or 0.1%, to 1,969.26
New Zealand NZX 50 index returned from a long weekend by weakening 38.16 points, or 0.7%, to 5,115.80
Australia’s S&P/ASX 200 inched 5.07 points, or 0.1%, to 5,536.07, also following a long weekend.
