Asia's major stock markets closed lower Tuesday on signs that the pace of China's economic growth is slowing.
Tokyo’s Nikkei 225 dipped 56.87 points, or 0.6%, to 9.711.87
In Hong Kong, the Hang Seng index stumbled 268.24 points, or 1.4%, to 19,496.95.
In Seoul, shares perceived as being more sensitive to economic data were lower, taking their cue from the Chinese data. Posco closed down 2.5%, Samsung Electronics Co. fell 1% and SK Energy Co. lost 0.5%.
GS Engineering & Construction Corp. gained 3.4% on news that a consortium led by French utility GDF Suez , and including Siemens AG and GS Engineering, had won a $1.7-billion U.S. contract to build two new power stations in Oman.
Over in Japan, political tension amid calls for Prime Minister Yukio Hatoyama's resignation and the Social Democratic Party's decision to leave the ruling coalition over the Futenma issue contributed to weakness in Tokyo.
Shippers and commodities-related stocks led Japanese shares lower, while the yen's continued strength against the euro weighed on exporters.
Mitsui O.S.K. Lines Ltd. fell 1.7%, Inpex Corp. lost 1.4% and Sumitomo Metal Mining Co. lost 1.9%. Sony Corp. fell 1%.
Sydney's market closed with a loss, following weakness in the region's markets. The Reserve Bank of Australia held its policy cash rate steady at 4.5%, as expected, marking its first pause in hikes since February.
Banking stocks finished lower in Sydney. Westpac Banking Corp. fell 0.9% and National Australia Bank Ltd. declined 1.2%.
Engineering group Downer EDI Ltd. tumbled 27% after disclosing impairments on its Waratah train project of 190 million Australian dollars ($160.6 million U.S.), as well as a general impairment of A$70 million.
The euro fetched $1.2196 against the dollar, compared with $1.2301 U.S. late in Toronto Monday, and was at 110.71 against the yen, against 112.40 yen. The dollar was buying 90.77 yen, compared with 91.09 yen.
CHINA
Earlier Tuesday, the China Federation of Logistics and Purchasing said that China's PMI fell to 53.9 in May from 55.7 in April.
Shanghai’s CSI 300 fell 29.10 points, or 1.1%, to 2,744.16
HSBC's own PMI gauge for China also fell to 52.7 in May from a revised 55.2 in April.
Also weighing on Chinese shares, the state-run China Securities Journal reported Tuesday, citing an unnamed source, reported that Beijing plans to launch a property tax trial in the provinces of Hunan and Hubei.
Poly Real Estate Group Co. ended down 3% while Baoshan Iron & Steel Co. lost 1.3%.
The China tax report also hit property shares in Hong Kong, with China Overseas Land & Investment Ltd. falling 4.7% and China Resources Land Ltd. declining 5.2%.
Elsewhere;
Singapore’s Straits Times Index slid 37.16 points, or 1.4%, to 2,715.44
Korea’s Kospi index settled 10.85 points, or 0.7%, to 1,630.40
Taiwan’s Taiex index gave back 84.65 points, or 1.2%, to 7,289.33
New Zealand’s NZX 50 Index let go of 6.47 points, or 0.2%, to 3,054.76
Australia’s S&P/ASX 200 lost 16.60 points, or 0.4%, to 4,413.10
