Asian stocks largely declined Wednesday after weak U.S. data refueled worries about the strength of the global economic recovery. Technology shares dropped, unimpressed by Samsung Electronics' forecast of a record operating profit.
Japan’s Nikkei 225 average lost 58.39 points, or 0.6%, to 9,279.65
Hong Kong’s Hang Seng index backpedaled 227.05 points, or 1.1%, to 19,857.07
Japanese shares declined after rising the previous three days, as investors turned cautious on exporters, which are to a large extent held hostage to the whims of the foreign-exchange market.
Honda Motor Co. gave up 1.6%, Nissan Motor Co. gave up 2.5% and Sony Corp. dropped 1.7%.
The Sydney market reversed course after opening higher, as weakness in financial issues overpowered modest gains in some mining stocks during a choppy trading session. National Australia Bank dropped 1.3% and Australia & New Zealand Banking Group gave up 1.3%, while Westpac Banking Corp. declined 0.8%.
However, the resources sector extended Tuesday's gains, aided by news of Chinese plans to front-load spending in the infrastructure sector.
BHP Billiton gained 0.8% and Rio Tinto advanced 1.1%. Shares of Sigma Pharmaceuticals jumped 13.9% to 45 Australian cents (38.3 U.S. cents) after it received a formal takeover offer from Aspen Pharmacare at A$0.55-a-share, valuing Sigma at A$648 million.
But the close was off the day's high of A$0.47 as Aspen's latest bid was lower than its previously indicated A$0.60-a-share offer.
In Seoul, heavyweight and technology-sector bellwether Samsung Electronics was in the limelight and dragged on the overall market as its stock dropped 0.8%. Samsung projected a record quarterly operating profit of five trillion Korean won ($4.09 billion U.S.) for the second quarter, but concerns over a possible oversupply in the memory chip market in coming quarters pressured the company's own, as well as other Asian chipmakers', shares. Hynix Semiconductor dropped 2.7% in Seoul and Elpida Memory gave up 3.3% in Tokyo, while Nanya Technology Corp. shed 0.6% in Taipei.
Hyundai Merchant Marine fell 3.6% on profit-taking after recent gains, even as the company swung to a second-quarter operating profit, on revived demand and higher freight charges.
CHINA
Chinese banks declined in Hong Kong and underperformed in Shanghai on concerns about market liquidity ahead of Agricultural Bank of China's listing and after Bank of China recently announced plans for a rights issue.
Shanghai’s CSI 300 Index gained 17.58 points, or 0.7%, to 2,580.48, as gains in consumer and cement stocks offset broad declines in banks.
Furthermore, the Chinese-language newspaper Ming Pao reported that Industrial & Commercial Bank of China -- the mainland's biggest lender by assets -- might raise up to 45 billion yuan in a rights issue.
ICBC dropped 0.5% and Bank of China ended flat in Shanghai. In Hong Kong, they dropped 1.4% and 1.3%, respectively.
Shanghai-traded shares ended higher despite the weakness in banks as investors snapped up cement and consumer stocks after recent declines. Anhui Conch Cement Co. rose 1.3% and Hebei Taihang Cement Co. jumped 3.4%, with Chongqing Brewery Co. adding 1.9% and Bright Dairy & Food Co. climbing 1.4%.
Elsewhere;
Singapore’s Straits Times Index eased 6.99 points, or 0.2%, to 2,861.03
Korea’s Kospi index moved lower 9.29 points, or 0.6%, to 1,675.68
Taiwan’s Taiex Index stumbled 14.02 points, or 0.2%, to 7,534.46
New Zealand’s NZX index added 9.34 points, or 0.3%, to 2,961.74
Australia’s S&P/ASX 200 stepped back 21.50 points, or 0.5%, to 4,254.60
