Major Asian markets ended lower Thursday as concerns about spreading European debt woes dragged down regional shares, although beaten-down Chinese banks found buyers after a string of declines.
Tokyo markets had the day off for a public holiday.
In Hong Kong, the Hang Seng index slid another 170.48 points, or 0.8%, to 20,778.92
The broad decline came in the wake of Standard & Poor's downgrade of Spain's sovereign ratings by one notch Wednesday, and despite a higher finish on Wall Street overnight that was helped in part by the Federal Reserve's decision to keep interest rates near zero and maintain its language of low rates for an "extended period."
Material stocks were lower across the region after falls in London Metals Exchange prices Wednesday, with BHP Billiton dropping 1.4% and Rio Tinto falling 2.5% in Sydney. Aluminum Corp. of China falling 1.6% in Hong Kong and 0.8% in Shanghai, while Yunnan Aluminium Co. fell 1.4% in Shenzhen.
Atlas Iron tumbled 6.7% in Sydney on plans to raise up to 63.5 million Australian dollars ($58.4 million U.S.) through a share placement to fund an increase in iron-ore production and sales in the second half of the year.
Shares of Australia & New Zealand Banking Group fell 2.6% after it declared a smaller dividend than some had expected. Macquarie said ANZ's results for the first half of its year were "fairly average," which highlighted that "Australia is a tough market for banks to generate top-line growth and ANZ is still in the investment phase for their Asia business." Other banks also declined, with Westpac Banking Group falling 0.5% and Commonwealth Bank of Australia slipping 0.3%.
Strong earnings and guidance also helped some technology companies outperform in Taipei. HTC Corp. gained 0.6% on hopes for better earnings ahead after the company said it expected second-quarter handset shipments to grow 50% on-year. But Compal Electronics slipped 0.2%, unable to hold on to gains, despite reporting that its first-quarter net profit had more than tripled because of strong notebook demand.
In Seoul, LG Electronics dropped 2.8% on concerns about intensifying competition in the smartphone market, despite swinging back to a profit in the first quarter from a loss in the year-earlier period. SK Telecom, South Korea's largest wireless carrier by subscriber numbers, gained 0.6% after reporting a modest 1.6% increase in first-quarter net profit.
Foreign exchange markets were relatively quiet with the Tokyo markets closed for a holiday. The euro was at $1.3234 U.S. from $1.3203 U.S. in late New York trade Wednesday, and at 124.31 yen from 124.27 yen. The dollar was at 93.94 yen from 94.11 yen.
CHINA
China's Shanghai CSI 300 composite index fell 37.29 points, or 1.2%, to 2,959.01.
Shares of China Merchants Bank gained 1.5% in Hong Kong as well as Shanghai despite overall weak market conditions, after the lender Wednesday reported a 40% jump in first-quarter net profit on the back of a big increase in net interest income and fee-based revenue.
Other banks also rose after recent losses amid fears of policy tightening, with Bank of China rising 1.5% and China Construction Bank adding 1.4% in Shanghai, while Bank of Ningbo Co. climbed 1.8% in Shenzhen.
Shares of refining giant China Petroleum & Chemical Corp., or Sinopec, fell 1.6% in Hong Kong and 0.7% in Shanghai in the weak market after reporting first-quarter results in line with expectations.
Elsewhere;
Korea’s Kospi index tailed off 5.49 points, or 0.3%, to 1,728.42
Singapore’s Straits Times Index moved ahead 26.97 points, or 0.9%, to 2,959.01
Taiwan’s Taiex index shed 27.50 points or 0.3% to 8,054.05
New Zealand’s NZX 50 Index forged ahead 1.71 points to 3,282.27
Australia’s S&P/ASX 200 stepped back 37.20 points, or 0.8%, to 4,785.60
