Hong Kong and Shanghai stocks both lost ground on Tuesday, after data showed China’s wholesale deflation worsened in February.
Meanwhile, Japan stocks extended losses despite a softer yen, after reports said the Basel Committee might ask banks to raise capital.
In Japan, the Nikkei 225 index retreated 125.44 points, or 0.7%, to 18,665.11
The yen fell further against the U.S. dollar to ¥121.79, compared with ¥120.84 at the previous Tokyo stock close. The currency had touched ¥122.04, its lowest level against the greenback since July 2007.
The Hang Seng Index plummeted 226.07 points, or 0.9%, to 23,896.98, running its losing streak to six sessions.
Weighing on the markets was a report by Nikkei that the Basel Committee on Banking Supervision might ask banks to raise capital as a cushion if interest rates rise, according to various media outlets.
CHINA
The Shanghai CSI 300 shed 17.14 points, or 0.5%, to 3,520.61
China’s producer price index fell 4.8% in February from a year ago, worse than fa 4.3% drop in the previous month. It also marked the index’s 36th straight month of declines. Meantime, the consumer price index increased 1.4%, up from January’s 0.8% growth.
In other markets
The Taiex index in Taiwan dropped 26.45 points, or 0.3%, to 9,536.53
In Singapore, the Straits Times Index dipped 6.31 points, or 0.2%, to 3,398.26
The Kospi index in Korea slid 8.05 points, or 0.4%, to 1,984.77
In New Zealand, the NZX 50 fell 9.21 points, or 0.2%, to 5,887.75
The S&P/ASX index recovered 2.84 points, or 0.1%, to 5,824.19
