Asian share markets closed broadly lower Tuesday, with major indexes posting their biggest one-day losses in weeks on renewed concerns that markets have climbed too much and too fast against a backdrop of uncertainty about the global economic recovery.
Japan's Nikkei 225 index plummeted 276.66 points, or 2.8%, to end the session at 9,549.61
In Hong Kong, the Hang Seng Index collapsed 521.18 points, or 2.9%, to 17,538.37.
Asian markets "seem to have overshot themselves - up 60% from the lows in the short term," said one expert. "What we are entering into is an 'information vacuum' period where the [Asian] markets await the next quarter earnings [and] confirmation of how strong the economic data points are coming out to affirm or contravene the conventional acceptance of a global recovery next year."
In the meantime, the "current correction is healthy for the market in the longer term," said another.
Oil and metals shares were among the biggest losers in Asia Tuesday.
Fortescue Metals closed down 9.8% in Sydney with Bluescope Steel off 6.1%, Alumina down 9.7%, Sims Metal down 3.4%, Rio Tinto falling 2.8% and BHP Billiton off 4.1%. Korea's Posco shed 3.8%, while in Japan, Nippon Steel fell 3.6% and Nippon Light Metal shed 5.1%.
In Hong Kong, PetroChina shed 4.4%, while Jiangxi Copper's H-shares dropped 6%.
Barclays Capital said the main reason for the declines was "speculation surrounding the possibility of a slowdown in Chinese import buying of commodities. (We feel) this poses the single biggest downside risk, especially for metal and agricultural prices. There are already some early signals that Chinese demand is beginning to ebb."
Markets were also cautious before a two-day meeting of the U.S. Federal Open Market Committee.
Meanwhile, a rising yen hurt exporter shares in Tokyo, with Nikon off 6.6% and Advantest down 5.6%.
Financial stocks were sold in Korea, with Shinhan Financial ending down 1.6%. There were also losses among Australian banks, with Westpac off 4.5%. Hong Kong heavyweight HSBC dropped 2.7% and in late afternoon trading, Singapore's DBS shed 1.9%.
Most China shares edged lower on continued liquidity concerns, given the recent resumption of initial public offerings after a nine-month moratorium.
Gome Electrical Appliances Holdings was a standout in Hong Kong, though, closing 68.8% higher after sealing a deal with Bain Capital to raise at least 3.24 billion Hong Kong dollars.
Elsewhere:
China’s Shanghai Composite Index actually gained 1.33 points, or 0.04%, to 3,083.90
Singapore’s Straits Times Index slid 40.82 points, or 1.8%, to 2,226.10
South Korea’s Kospi index backpedaled 39.17 points, or 2.8%, to 1,360.54
Taiwan’s Taiex moved lower by 143.74 points, or 2.3%, to 6,197.47
New Zealand’s NZX 50 Index fell 32.90 points, or 1.2% to 2,762.01
Australia’s S&P/ASX 200 gave back 121.30 points, or 3.1%, to 3,796.90
