Most Asian stock markets moved lower Tuesday as fears about further monetary-tightening measures in China helped fuel a drop in the Shanghai Composite index to its weakest closing level in seven weeks.
The Japanese market also fell, with the Nikkei Stock Average ending near a two-week low after data showed a rise in unemployment and a drop in industrial production in October.
The Nikkei 225 Index staggered back 188.95 points, or 1.9%, to close Tuesday at 9,937.04, its weakest close since Nov. 17.
Hong Kong’s Hang Seng Index surrendered 158.23 points, or 0.7%, to 23,008.
However, the Seoul market climbed after posting losses in the past two sessions, buoyed by an uneasy calm on the Korean Peninsula.
European news was continuing to hit the Asia region.
Despite Sunday’s announcement of an 85-billion-euro ($113-billion U.S.) bailout package for Ireland, worries remained as to whether Portugal or Spain will also need help refinancing their debt.
In Tokyo, stocks slid on concerns about the domestic economy as well as on Monday’s sharp drop in the euro against the yen.
Japan’s seasonally-adjusted unemployment rate rose to 5.1% in October, from 5% in September, while month-on-month industrial output decreased 1.8%, government data Tuesday showed.
Exporters were mostly lower as Canon Inc. lost 2.4%, Nikon Corp. fell 2.1% and Elpida Memory Inc. closed off 4%.
Toyota Motor Corp. turned lower to close down 2.4% after the Japanese automobile giant said it will recall 650,000 Prius cars worldwide to repair a coolant pump defect. Toyota came under fire earlier this year for its slowness in recalling more than 8.5 million vehicles to fix problems with gas pedals, floor mats and braking systems.
Nintendo Co. bucked the market, rising 4.2% after saying it sold 900,000 DS portable-games devices and 600,000 Wii consoles in the U.S. during the Black Friday shopping week.
In Seoul, the market outperformed the region.
Hynix Semiconductor Inc. dropped 5.2% on concerns that the fall in DRAM chip prices will continue to weigh on its fourth-quarter earnings after Gartner Inc. on Monday cut its forecast for worldwide personal-computer shipments for this year.
In foreign-exchange markets, the euro remained under selling pressure after it fell below $1.31 for the first time since Sept. 21 on Monday, as the Ireland bailout package failed to ease concerns that debt problems could spread to other European nations.
CHINA
In China, investors continued to fret over the possibility of further monetary-tightening measures from Beijing.
Shanghai’s CSI 300 Index slid 53.06 points, or 1.7%, to close at 3,136.99
China last month surprised markets by raising its policy interest rate, and in recent weeks policy makers have ramped up separate tightening measures to cool inflation.
In other markets
Singapore’s Straits Times Index fell 13.51 points, or 0.4%, to 3,144.70
Korea’s Kospi Index recovered 9.09 points, or 0.5%, to 1,904.63
Taiwan’s Taiex Index advanced 5.31 points to 8,372.48
New Zealand’s NZX 50 Index settled 5.88 points, or 0.2%, to 3,264.50
Australia’s S&P/ASX 200 Index moved down 34.10 points, or 0.7%, to 4,584.40
