Most major Asian markets ended lower Thursday in cautious trade, with Japanese shares falling after the Bank of Japan's tankan survey showed corporations planned to cut capital outlays more than expected.
In Tokyo, the Nikkei 225 tailed off 154.59, or 1.5%, to 9,978.64, ending below the psychologically crucial 10000-point level for the first time since late July. While the yen's recent strength hurt exporters, the broad market was pressured by the outcome of the tankan survey.
Although the survey showed sentiment among Japan's large manufacturers was improving, their capital-expenditure plans for this fiscal year were weaker than they were in the previous survey, which was a slight negative for the stock market, according to one expert.
Shares of Toyota Motor lost 1.7%, while Canon and Sony slid 2.8% each.
The U.S. dollar climbed to 89.97 yen versus 89.75 yen late in New York trade Wednesday. The euro fell to $1.4597 U.S. from $1.4636 U.S., but was flat versus the Japanese unit at 131.36 yen.
In other foreign-exchange trading, the dollar was buying 1,178 Korean won recently, compared with 1,167 won. Traders suspected the central bank may have bought dollars to cap the won's gains, even as government officials were talking down the local currency.
In Singapore trading, StarHub tumbled 6.5% after the company lost exclusive rights to English Premier League content as well as ESPN STAR Sports channels to rival Singapore Telecommunications.
Hong Kong and Shanghai markets had the day off for a national holiday.
SingTel's shares added 1.5% despite concerns it might have overpaid for the content. SingTel, which holds a stake of more than 30% in Bharti, was also supported by news that the Indian company's proposed MTN deal had been scrapped.
Shares of Japan Airlines jumped 5.3% with good volumes in spite of the weakness in Tokyo, after Transport Minister Seiji Maehara said Wednesday the government is ready to provide assistance to the airline to ensure its operations aren't disrupted.
But Advantest and Elpida Memory slumped after Credit Suisse cut their ratings, saying DRAM memory chip prices and orders were peaking. Elpida sank 8.6%, while Advantest skidded 5.8%.
In Seoul trading, shipbuilders continued to slide as analysts retained their cautious view on the sector following reports that France's CMA CGM may have plans to renegotiate and cancel orders awarded to South Korean shipbuilders.
Shares of Hyundai Heavy Industries fell 2.5%, on top of Wednesday's 9.5% plunge, while Daewoo Shipbuilding & Marine Engineering shed 4.7% following a 9.5% tumble in the previous session.
Taiwanese financial plays advanced, getting a boost after Commercial Times reported, citing people familiar with the matter, that Taiwan and China will sign in October a long-awaited memorandum of understanding on opening their financial-services markets to each other. Cathay Financial Holding climbed 2.8% and Fubon Financial Holding gained 2.5%.
Many regional energy plays were higher after crude-oil prices jumped on Wednesday with Nymex light sweet crude for November delivery settling up $3.90. The contract was recently down 59 cents at $70.02 a barrel on Globex, which capped the stock gains. Inpex added 0.7% in Tokyo and Woodside Petroleum rose 0.5%
Elsewhere:
South Korea’s Kospi index skidded 28.51 points, or 1.7%, to 1,644.63.
Taiwan’s Taiex moved ahead 36.12 points, or 0.5%, to 7,545.29
Singapore’s Straits Times index stumbled 15.13 points, or 0.6%, to 2,657.44
New Zealand’s NZX 50 Index picked up 22.80 points, or 0.7%, to 3,183.86
Australia’s S&P/ASX 200 lost 42.50 points, or 0.9%, to 4,701.10.
