Asian stocks ended mixed Monday in cautious trade as investors digested the weekend communiqué from the Group of 20 nations.
Japan’s Nikkei 225 average fell 43.54 points, or 0.5%, to 9,693.94
Hong Kong’s Hang Seng index regained 35.89 points, or 0.2%, to end the week’s first session at 20,726.68
Japanese shares were led lower by Mizuho Financial Group after the banking giant announced plans to raise billions of dollars from a share sale, while several energy sector shares climbed after crude-oil prices rose on Friday.
Shares of some large banks such as HSBC and Standard Chartered were weighed by concern they may be subject to tighter regulations, he added. HSBC dropped 0.3% and Stanchart lost 2.6% in Hong Kong.
The G-20 communiqué Sunday showed the group firmly focused on containing budgets and debt levels, with the wealthiest countries in the group saying they would halve their deficits by 2013. The group also pledged to stick to the 2012 timetable to implement tougher capital and liquidity standards for banks, with standards converging after initial variation.
In Sydney, shares of National Australia Bank and Westpac Banking Corp. dropped 1.1% each, while Australia & New Zealand Banking Group fell 0.8%.
Still, some other regional banks were higher in the wake of gains for their U.S. counterparts Friday. DBS Group Holdings gained 1.9% and United Overseas Bank climbed 1.2% in Singapore trading and Bangkok Bank rose 0.4%. Korea Exchange Bank rose 1.2% and Shinhan Financial Group Co. rose 0.2% in Seoul.
U.S. banks were buoyed after congressional Democrats and White House officials reached an agreement on the final shape of financial regulation legislation. The uncertainty over the new rules had been weighing on bank stocks. The bill is expected to have enough support to become law.
However, some analysts said the bill wouldn't be palatable for everyone.
Mizuho Financial Group paced a broad decline in Tokyo, dropping 2.6% after announcing Friday it will raise as much as 857.6 billion yen ($9.6 billion U.S.) via a new share issuance. The group has set a July 13-15 pricing window. The weakness dragged on other Japanese financials, with Mitsubishi UFJ Financial Group shedding 1.9%, Sumitomo Mitsui Financial Group losing 1.9% and Nomura Holdings dropping 1.9%.
Major exporter shares were underperforming in a weak Tokyo market as flight to the perceived yen safe-haven was accelerating on lingering worries over the European and U.S. economic outlooks. Toyota Motor Corp. shed 1.1%, Sony Corp. dropped 0.7% and Ricoh shed 0.8%.
Woori Finance Holdings climbed 1.7% after reports that the South Korean government might delay plans to select a preferred bidder for its majority stake in the company.
Financial stocks stretched gains in Taipei after the island's central bank unexpectedly raised the key benchmark discount, and secured-loans rates by 12.5 basis points, respectively. The move late Thursday was expected to help boost the net interest margin for banks.
Taiwanese banks were also expected to benefit from preferable terms under the Taiwan-China trade pact to be inked on Tuesday, said Taiwan International Securities Assistant Vice President Andrew Teng. Cathay Financial rose 2.1% and Chinatrust Financial Holding Co. added 1.1%.
Several energy shares rose after crude-oil prices rose sharply Friday. Shares of Cnooc climbed 2.5% and PetroChina Co. added 0.2% in Hong Kong, with Oil Search advancing 0.4% in Sydney
Korean construction stocks were down after creditor banks Friday selected 65 companies, including 16 construction firms, for a restructuring program. Hyundai Engineering & Construction lost 3.6% and Daewoo Engineering & Construction gave up 1.4%.
In foreign-exchange markets, the euro was at $1.2366 U.S. from $1.2388 U.S. in late New York trade Friday, and at 110.55-110.56 yen. The dollar was fetching 89.40 yen from 89.26 yen.
CHINA
Shares traded on mainland China fell in thin trade as investors awaited pricing details for Agricultural Bank of China's initial public offering, though banking peers outperformed amid expectations that the IPO could support sector valuations.
Shanghai’s CSI 300 Index let go of 19.51 points, or 0.7%, to 2,716.78
Shares of China Citic Bank gained 2.3%, while China Merchants Bank and Bank of Communications advanced 1% each.
Shares of Chinese coal producers lost ground after the National Development and Reform Commission announced on Friday that it has asked major coal companies to keep prices stable to control inflation. Shares of China Coal Energy dropped 1.6% China Shenhua Energy fell 1.5% in Shanghai. The stocks slumped 6.4% and 2.9% in Hong Kong, respectively.
Elsewhere;
Singapore’s Straits Times Index grew 18.35 points, or 0.6%, to 2,869.99
Korea’s Kospi index improved 2.19 points, or 0.1%, to 1,732.03
Taiwan’s Taiex Index moved up 26.08 points, or 0.4%, to 7,500.79
New Zealand’s NZX index shed 25.70 points, or 0.9%, to 3,008.41
Australia’s S&P/ASX 200 took off 28.50 points, or 0.7%, to 4,384.50
