Asian stocks fell for the first time in three days and Chinese shares entered a so-called correction, amid concern a rally in equities had outpaced earnings prospects.
The Nikkei 225 index in Tokyo jettisoned 150.46 points, or 1.4%, to 10,435, after exploring 10-month highs the last couple of days.
Mitsubishi Corp., a trading company that gets more than a third of its sales from commodities, lost 2.6% on lower oil and metals prices. Honda Motor Co. also slipped 2.6% in Tokyo, as a weaker dollar hurt the outlook for overseas earnings. The yen rose against all 16 major currencies.
Bank of the Ryukyus Ltd., a regional Japanese lender, climbed 5.5%, after saying first-quarter net income rose 12%.
In Hong Kong, the Hang Seng index plummeted 638.97 points, or 3%, to 20.435.24.
China Mobile Ltd. dropped 3.8% in Hong Kong, as the Chinese commerce ministry said efforts to boost domestic demand can’t completely offset an export slump. Great Wall Motor Co., China’s largest maker of pick-up trucks, declined 10% in Hong Kong, and Ascendas Real Estate Investment Trust slumped 6.3% in Singapore after selling shares at a discount.
Aluminum Corp. of China Ltd., the country’s number-one maker of the light metal, slid 4.9%. Jiangxi Copper Co., China’s biggest producer of the metal, fell 3.9%.
Hong Kong Exchanges & Clearing Ltd., operator of Asia’s number-three stock market, declined 3.9% after first-half profit slumped 26%. Sinotrans Shipping Ltd. fell 3.8%. The dry-bulk arm of China’s third-largest shipping group said first- half profit declined 66% after rates plunged amid rising overcapacity.
Australia’s S&P/ASX 200 Index added strength, even as the statistics bureau said wage-growth stalled last quarter, as Commonwealth Bank, Australia’s biggest lender by market value, gained 3.2%.
The bank posted full-year earnings of $4.72 billion Australian, compared with the median estimate of eight analysts surveyed by Bloomberg for $4.64 billion Australian.
CHINA
Shanghai’s 300 Composite Index collapsed 158.98 points, or 4.5%, to 3,397.40, as investors took flight amid mounting concerns government-led investment and lending growth are beginning to moderate.
The share-price decline comes a day after the People's Bank of China said lending by Chinese banks totaled 355.9 billion yuan ($52.1 billion U.S.) in July, a decline of 77% from the prior month, and fixed-asset investment growth eased to 30% in July from a rise of 35% in June.
Zhuzhou Smelter Group Co. sank 6% in Shanghai after it reported lower profits. Dongfeng Automobile Co., which makes light trucks in China with Nissan Motor Co., fell 4.7% after sales for the first seven months the year fell 3.8%.
Elsewhere:
Singapore’s Straits Times Index eased off 25.99 points, or 1%, to 2,571.31
South Korea’s Kospi index slid 13.86 points, or 0.9%, to 1,565.35
Taiwan’s Taiex let go of 10.12 points, or 0.2%, to 6,898.90
New Zealand’s NZX 50 Index tacked on 24.22 points, or 0.8%, to 3,079.69
Australia’s S&P/ASX 200 moved ahead 11.10 points, or 0.3%, to 4,343.10
