China shares fell sharply Tuesday after the country’s securities regulator issued a fresh, albeit mild, warning to investors on the market’s risks, while in Australia, weakness in mining shares pushed the benchmark further away from the psychologically important 6,000 mark.
In Japan, the Nikkei 225 recovered 75.63 points, or 0.4%, to 20,058.95, despite a move by Fitch Ratings overnight to cut its appraisal on Japan by one notch to single A with a stable outlook. The market heads into a public holiday Wednesday.
In Hong Kong, the Hang Seng index added 9.16 points to 28,442.75. Shares of Petro China and China Petroleum & Chemical each fell nearly 5%, following a strong run-up Monday amid chatter about state-owned enterprise reform.
Australia markets moved further away from 6,000, a level last breached in January 2008. The index had come within 20 points of 6,000 at yesterday’s close.
A closely followed morning speech by Reserve Bank of Australia Gov. Glenn Stevens shed no new light on the central bank’s thinking ahead of next week’s policy meeting. Doubts have grown the bank will cut in May following some stronger-than-expected economic data and with the rise in the iron-ore price.
Several traders have said a push above the 6,000 mark near term may depend on another cut in the Reserve Bank’s cash rate from an already record low 2.25%.
CHINA
The Shanghai CSI 300 went south 65.73 points, or 1.4%, to 4,741.86
Selling pressure intensified after the China securities watchdog urged caution among retail investors.
"We remind investors, especially those new to this market, about doing their homework and investing rationally," the China Securities Regulatory Commission said in a statement posted on its website.
Despite the losses Tuesday, analysts remain upbeat on China’s medium-term outlook because of continuing stimulus measures from Beijing.
After markets closed, The Wall Street Journal reported that China’s central bank plans to ease credit by supporting commercial lenders’ efforts to purchase local-government bonds. The Shanghai index saw rose Monday on news that China is planning a new wave of mergers in the state sector as part of its economic overhaul.
In other markets
In Singapore, the Straits Times Index backtracked 20.76 points, or 0.6%, to 3,495.09
The Kospi index in Korea lost 9.87 points, or 0.5%, to 2,147.67
In Taiwan, the Taiex index moved back 16.29 points, or 0.2%, to 9,956.83
In Australia, the S&P/ASX 200 erased 34.15 points, or 0.6%, to 5,769.65
In New Zealand, the NZX 50 resumed business after a long weekend, eking up 4.30 points, or 0.1%, to 5,948.54
