Asian shares declined Tuesday after a plunge in the U.S. spooked investors, although some markets pared the extent of early losses in late trading.
Japanese stocks fell for a third straight session, led by a steep decline in Nomura Holdings Inc. after the brokerage announced a share-sale plan a day earlier. This outweighed modest gains in exporters as the yen extended its recent weak spell against major currencies.
In Tokyo trading, the benchmark Nikkei 225 Average tumbled 107.60 points, or 1.5%, at 7,268.56.
Shares of Nomura Holdings plunged 9.3% after the brokerage Monday said it will issue 716.4 million shares in the domestic and overseas markets, on concerns the issue, which is estimated to help Nomura raise as much as $3.5 billion U.S., could dilute its equity capital by as much as 39%.
Modec Inc., which makes offshore oil and gas equipment, plunged by 20% in Tokyo as it forecast profits to tumble.
In Hong Kong, the Hang Seng Index subtracted 2.9%, or 376.58 points, to 12,798.52. Some experts said anticipation that the Hong Kong government could announce personal tax concessions and stimulus measures for the property sector in an annual budget on Wednesday kept the market from falling further.
Still, some others expressed concern about deteriorating conditions in Hong Kong ahead of economic data also expected Wednesday. Gross domestic product for the three months ended Dec. 31 is expected to have contracted 1.5% from the same period a year earlier, according to the median estimate of 12 economists surveyed by Dow Jones Newswires.
Property shares fell less than the broad market in Hong Kong on hopes of a government stimulus, with Cheung Kong (Holdings) down 2.1% and Henderson Land Development Co. falling 1.4%.
Shares of market heavyweight HSBC Holdings dropped 3% on persistent worries it may announce a large share sale as well as large write-downs related to bad investments when it reports its earnings next week.
PetroChina Co., China’s largest oil producer, lost 4.1% in Hong Kong after crude prices dropped.
Suncorp-Metway Ltd., Australia’s third-largest general insurer, declined 4.8% as its first-half profit tumbled. Engineering company Ausenco Ltd. slumped 19% in Sydney after saying clients had canceled projects.
BHP Billiton Ltd., Australia’s largest oil producer, lost 1.2%. Australia’s BlueScope Steel Ltd., which said yesterday it may have a second-half loss, slumped 8.3%.
CHINA
China's Shanghai Composite Index dropped by the biggest margin, 4.5%, as investors locked in profits after three days of gains in one of the world's best performing markets of 2009. The Shanghai Composite Index fell 108.63 points, to 2,301.85. Baoshan Iron & Steel Co., China’s largest steelmaker, slid 5.6% after UBS AG said producers had overestimated demand.
Elsewhere:
Singapore’s Straits Times Index slumped 16.25 points, or 2.2%, to 1,614.44
Taiwan’s Taiex Index lost 47.60 points or 1.1%, to 4,430.18
South Korea’s Kospi retreated 35.67 points or 3.2% to 1,063,88
New Zealand’s NZX 50 Index slid another 50.76, or 2.0%, to 2,487.53
Australia’s S&P/ASX 200 Index was down 19.60 points or 0.6% to 3,331.60
