Chinese and Hong Kong stocks declined to lead most Asian markets lower Wednesday on fears Beijing may launch more policy restrictions in coming months after raising interest rates late on Tuesday.
Although the rate hike failed to weigh on U.S. stocks overnight, concerns that the policy tightening would damp Chinese demand had a more pronounced effect in Asia, with South Korean and Taiwanese shares also suffering significant losses.
Japan’s Nikkei 225 Index skidded 18.15 points, or 0.2%, to 10,617.80, snapping a three-session winning streak.
Hong Kong’s Hang Seng Index fell 320.27 points, or 1.4%, to 23,164.
In Tokyo, strong cues from Wall Street and a 5.2% jump in shares of Toyota Motor Corp. after the auto maker raised its earnings forecast Tuesday failed to support the market.
In Tokyo, Chinese demand-sensitive Komatsu and Hitachi Construction Machinery each lost 1.7%, while Daikin Industries lost 3.1% after reporting a double-digit fall in its third-quarter profit.
In Taipei, the market was dragged down by the China news and a rise in the New Taiwan dollar, with electronics exporters hit particularly hard after the local currency rose to its highest level against the U.S. dollar since October 1997 on Tuesday. United Microelectronics Corp. shed 3.4% and Taiwan Semiconductor Manufacturing Co. gave up 2.3%.
South Korean stocks, meanwhile, were also hurt by foreign investors’ sales and uncertainty before the Bank of Korea’s policy decision. Financial and shipbuilding stocks led the fall, with Hana Financial Group losing 3.9% and Hyundai Heavy Industries declining 3.9%.
Bucking the broad regional trend, Australia’s S&P/ASX 200 advanced 0.3% to hit a 10-month closing high, with Commonwealth Bank of Australia leading bank shares higher after beating earnings consensus. CBA itself rose 2.1%, and helped other banks post gains, with Australia &
New Zealand Banking Corp. adding 2.1% and Westpac Banking Corp. advancing 1.9%.
BHP Billiton slid 0.5% on caution over China’s policy tightening and Rio Tinto added 1.2% before its full-year results.
OZ Minerals advanced 1.4% on news it plans to return nearly half of its A$1.33 billion ($1.34 billion U.S.) in cash to shareholders by the end of June, while Boral soared 8.9% after its first-half profit rose 36%.
In foreign-exchange markets, the euro advanced against major rivals, and was at $1.3647 U.S., from $1.3625 U.S. in late New York trade Tuesday, and at 112.42 yen, from ¥112.25. The dollar was up at ¥82.44 from ¥82.37.
CHINA
Shares in China were volatile in the morning session, but lost ground in the afternoon session, as analysts saw more rate hikes coming in the months ahead. Some pointed to the risk of a further increase in food prices because of poor weather conditions in northeastern China.
Shanghai’s CSI 300 Index returned from holiday with a loss of 36.33 points of 1.2% to 3,040.95.
Property stocks were among those hurt on concern more expensive mortgages will hurt demand for housing. China Vanke lost 2% in Shenzhen, Gemdale Corp. lost 3.3% in Shanghai and China Resources Land skidded 3.9% in Hong Kong.
In other markets;
Taiwan’s Taiex Index tanked 104.64 points, or 1.2%, to 9,006.82
Korea’s Kospi Index dropped 24.12 points, or 1.2%, to 2,045.58
Singapore’s Straits Times Index fell 34.80 points, or 1.1%, to 3,150.56
New Zealand’s NZX 50 nipped 3.30 points, or 0.1%, higher to 3,386.48
Australia’s S&P/ASX 200 grew 14.40 points, or 0.3%, to 4,904.80
