Asia markets fell Tuesday, with investors wary of the potential for the spreading of hostilities in the region following artillery fire between North and South Korea.
Hong Kong’s Hang Seng Index collapsed 627.88 points, or 2.7%, to 22,896.10, closing below 23,000 for the first time since October.
North Korea fired artillery at South Korea’s Yeonpyeong Island, off the countries’ western sea border on Tuesday afternoon. South Korea returned fire and dispatched fighter jets to the area, military officials said.
The conflict dominated currency and equity markets as investors sought to assess the full extent of the escalating crisis, according to some experts.
Korea’s Kospi Index fell back 15.40 points, or 0.8%, to 1,928.94. South Korea’s currency tumbled 2.5% against the U.S. dollar in late Asia trade.
Japanese markets were closed for a public holiday.
In Australia, BHP Billiton Ltd. shed 1.7% and Rio Tinto Ltd. lost 1.4% as Woodside Petroleum Ltd. fell 2.1% and Santos Ltd. shed 2.4%.
In Hong Kong, shares of Jiangxi Copper lost 3.8% and Chalco fell 2.4%.
New Zealand’s benchmark index dropped to its lowest closing level in more than a month with New Zealand Oil & Gas Ltd. shares hammered by the fallout from the Pike River Coal mining accident.
New Zealand investors remained focused on the plight of 29 trapped miners at Pike River Coal Ltd.’s remote mine on New Zealand’s South Island, following an explosion on Friday.
Trade in Pike River was halted, but its 29% shareholder, New Zealand Oil & Gas, slumped 28% after its trading halt was lifted on Tuesday.
The dollar was at ¥83.42, off its Asian high of ¥83.86, but up from ¥83.38 just before the Korean news broke, and ¥83.28 in late New York trade.
CHINA
Chinese mainland property developers lost ground after the Shanghai Securities News reported that some Chinese trust companies have halted property-related loans after the country’s banking regulator ordered the trust firms to submit risk and compliance reports on such lending.
Shanghai’s CSI 300 Index lost 64.77 points, or 2%, to 3,107.18
In mainland markets, China Vanke Co. shed 2.1% in Shenzhen and Poly Real Estate Group Co. fell 2.6% in Shanghai. Shares of Jiangxi Copper Co. dropped 5.3% and Aluminum Corp. of China Ltd., also known as Chalco, sank 4.1% in Shanghai.
In other markets
Singapore’s Straits Times Index dropped 64.62 points, or 2%, to 3,126.30
Taiwan’s Taiex Index surrendered 46.28 points, or 0.6%, to 8,328.63
New Zealand’s NZX 50 Index retreated 37.86 points, or 1.2%, to 3,258.77
Australia’s S&P/ASX 200 Index moved down 54.40 points, or 1.2%, to 4,589.10
