Most Asian stocks declined Thursday, with Chinese shares dropping sharply as a central bank move to tighten liquidity in the money markets raised fears interest rate increases could come sooner than expected.
The Nikkei 225 index saw its win streak snapped, losing 49.79 points, or 0.5%, to 10,681.66.
In Tokyo, shares were weaving in and out of positive territory before ending lower. Shares of Japan Airlines tumbled 9.3% after the Nikkei reported that the government-backed entity overseeing the carrier's rehabilitation looked to cut the company's debt by 730 billion yen ($7.9 billion U.S.) via debt waivers and reductions in pension and bond obligations.
Stockholders might have to shoulder at least a portion of the burden, while banks could be asked to forgive some debt.
Mining stocks were up on an overnight increase in gold and commodity prices, with Sumitomo Metal Mining adding 1.5%. Shipping companies rose after Morgan Stanley upgraded its view on the sector to "attractive." Nippon Yusen K.K. jumped 5.8% and Mitsui O.S.K. Lines added 3.2%
Hong Kong’s Hang Seng Index dropped 147.22 points, or 0.7%, to 22,269.45.
Hong Kong traded stocks also retreated after a string of recent advances. ICBC declined 1.2% and Denway Motors shed 3.4%, while Maanshan Iron & Steel slipped 0.5%. Shares of Foxconn International Holdings dropped 4.9% in Hong Kong after rising 31.4% over the past seven consecutive sessions.
Consumer-related stocks in Sydney rose after news of stronger-than-expected November retail sales, with David Jones rising 0.6% and Harvey Norman climbing 3.7%.
Australian retail sales were up 1.4% from the month before, reaching a seasonally adjusted 20.08 billion Australian dollars ($18.5 billion U.S.), outstripping expectations for a 0.3% rise. That raised hopes for solid December sales.
The Taiwan market was also choppy with investors cautious after recent strong gains. Nanya Technology fell 2.5% and Cathay Real Estate Development slid 3.6%.
In foreign exchange markets the U.S. dollar continued to weaken against currency majors, after it slipped Wednesday on dovish U.S. Federal Reserve policy meeting minutes.
The dollar was at 92.71 yen from 92.45 yen late Wednesday in New York, while the euro was at $1.4374 from $1.4409 U.S., and at 133.26 yen from 133.20 yen
CHINA
The Shanghai 300 Composite Index subtracted 70.27 points, or 2%, to 3,471.46, extending losses after the People's Bank of China sold 60 billion yuan ($8.78 billion) worth of three-month bills at 1.3684%, increasing the yield on such bills for the first time since August, from 1.3280%.
Banking, steel and automobile stocks paced the broad-market decline, with Industrial & Commercial Bank of China dropping 2.4%, SAIC Motor shedding 4.4% and Baoshan Iron & Steel shrinking 4.9% in Shanghai.
Elsewhere;
Korea’s Kospi Index slid 21.87 points, or 1.3%, to 1,683.45
Taiwan’s Taiex index retreated 90.20 points, or 1.1%, to 8,237.42
Singapore’s Straits Times index took off 17.24 points, or 0.6%, to 2,913.25
New Zealand’s NZX Index bucked the trend and gained 13.24 points, or 0.4% to 3,284.81.
Australia’s S&P/ASX 200 slipped 22 points, or 0.5%, to 4,889.40.
