Asian benchmarks erased early gains Tuesday, dragged down by losses in Chinese shares after Beijing dashed hopes that it would relax its tightening policies on the property market.
Japan’s Nikkei 225 average settled 10.88 points, or 0.1%, to 9,537.23
Hong Kong’s Hang Seng Index dropped 36.37 points, or 0.2%, to 20,431.06
In Hong Kong, mainland developers slipped, and Zijin Mining plunged 12.2% after China's biggest gold producer said on Monday it halted operations at one of its copper plants in eastern China after a leak of acidic waste water.
Investors were ignoring the company's usually keenly watched U.S. dollar revenue guidance, which it raised for the fiscal year 2011 to $5.72 billion to $5.81 billion U.S. Infosys also raised its earnings per American depositary share guidance to $2.42 to $2.52 U.S.
In Tokyo, shipping stocks, which had led the market's gains earlier, succumbed to profit-taking. Nippon Yusen ended down 0.6% at 331 yen ($3.74 U.S.), down from an intraday high of 342 yen.
Rival Mitsui O.S.K. Lines was down 1.1% at 582 yen, below its intraday high of 603 yen.
Nissan Motor shed 1.5% after the auto maker said on Monday it will suspend operations at four of its five domestic plants for three days from Wednesday due to a delay in the delivery of engine parts from Hitachi. On Tuesday, Nissan also said the delay could affect its North American production.
Mizuho Financial Group dropped 2.2% to a 2010 low on almost five times normal trading volume, as investors sold shares in hopes that the upcoming new share issue price would be set lower.
Tuesday marked the start of the pricing window for the offer worth up to 857.6 billion yen. After the market close, Mizuho priced it at 130 yen per share.
Major banks were mostly down, while metals shares slumped. In Australia, BHP Billiton was down 2.6% and Rio Tinto shed 3.2% on the weakness in Wall Street's materials sector on Monday.
The South Korean market managed to end slightly higher after struggling for much of the session.
Auto makers were leading the decliners on profit taking after their recent gains, with Hyundai Motor down 2.1% and Kia Motors down 3.3%.
Ssangyong Motor fell 4.5% after news the deadline for binding bids to buy the car maker has been extended by three weeks, as some of the six bidders sought more time to complete due diligence on Ssangyong's books.
Posco ended down 0.2% ahead of earnings. After the market close, the steelmaker boosted its 2010 financial targets after reporting that net profit nearly tripled in the second quarter. It said it expects demand from its main customers to remain strong in the second half.
In Taiwan, HTC reversed gains and ended down 2%, after its shares got an earlier lift from news the smartphone maker will launch a share buyback plan.
In foreign exchange markets, the euro had lost its early shine, along with stock markets across Asia, while the Japanese yen benefited from some safe-haven bids.
The euro was at $1.2546, compared with $1.2593 in late New York trade Monday, and at 110.95 yen from 111.55 yen. The dollar was at 88.45 yen from 88.59 yen.
CHINA
The Chinese government denied an unsourced report in the state-run Securities Times newspaper Monday that China had loosened some controls on mortgage lending in first-tier cities, with three ministries late Monday reiterating their resolve to stick to tight property policy to curb speculation.
Shanghai’s CSI 300 Index jettisoned 41.62 points, or 1.6%, to 2,634.59
In China, property developers led declines. China Vanke fell 2.4% and Poly Real Estate Group down 4.3%.
Elsewhere;
Singapore’s Straits Times Index gained 3.38 points, or 0.1%, to 2,928.70
Korea’s Kospi index moved higher 1.03 points to 1,735.08
Taiwan’s Taiex Index slid 42.13 points, or 0.6%, to 7,597.42
New Zealand’s NZX index gave back 3.13 points, or 0.1%, to 3,008.90
Australia’s S&P/ASX 200 fell 29.60 points, or 0.7%, to 4,380.30
