Japanese shares fell for the first time in three sessions Wednesday as news of radioactive contamination in Tokyo tap water prompted a late selloff, while weak results from China Coal Energy Co. and China Life Insurance Co. pressured Hong Kong stocks.
The Nikkei 225 Index fell back 158.85 points, or 1.7%, to 9,449.47
Hong Kong’s Hang Seng Index sidled back 32.50 points, or 0.1%, to 22,825.40
Many other markets advanced, with Chinese stocks posting solid gains led by property developers on hopes inexpensive share valuations and strong economic growth will boost the market.
The day’s performance was again marked by caution amid worries over the strength of the U.S. economic recovery, rising crude oil prices, geopolitical turmoil in the Mideast and North Africa region and sovereign debt-related issues in the euro-zone.
Losses in Tokyo steepened after the Tokyo metropolitan government asked families not to let infants drink tap water after finding higher-than-allowed levels of radioactive iodine.
Shares of Tokyo Electric Power Co. dropped 4.5% after staging a sharp rebound in the previous two sessions amid easing fears over radiation from its earthquake-damaged Fukushima Daiichi nuclear-power plant.
The fall came despite media reports that Japanese banks and financial institutions were considering providing emergency loans totaling more than two trillion yen ($24.6 billion U.S.) by the end of March to enable the utility to conduct repairs and boost electricity supply.
Shares of Terumo Corp. dropped 4.1% after the medical-equipment maker lowered its fiscal-year net-profit outlook, citing the impact on production due to the quake and rolling blackouts.
Many exporters also lost ground on worries about the quake’s impact on earnings. Toyota Motor Corp. shed 1.2% and Fujitsu Ltd. lost 6.6%.
On the upside, Taiheiyo Cement Corp. rose 3.4% to end at ¥153 after the company announced after the market close on Tuesday that it will pay a ¥2.50-a-share final dividend.
In Hong Kong, shares of China Coal plunged 9.1% and China Life dropped 2.1% a day after each reported weaker than expected results for 2010. China Coal’s fall was aided by HSBC’s downgrade of the stock to neutral from overweight.
Australian shares were supported by a rise in energy sector shares as crude-oil prices straddled the $105-U.S.-a-barrel level. Woodside Petroleum Ltd. rose 0.7% and Santos Ltd. climbed 2.1%.
But shares of Virgin Blue Holdings Ltd. tumbled 6.1% after the carrier warned higher oil prices and the New Zealand earthquake will crimp its full-year profit.
The U.S. dollar was buying ¥80.83 from ¥80.95 in late New York trade Tuesday, while the euro was at $1.4188, from $1.4195 and at ¥114.66, from ¥114.95.
CHINA
Chinese property developers led an advance across numerous sectors.
The Shanghai CSI 300 Index added 41.97 points, or 1.3%, to 3,264.93
Poly Real Estate Group Co. added 3.9% in Shanghai, with China Vanke Co. climbing 2.4% in Shenzhen.
While the Shanghai-listed shares of China Coal dropped 1.4% after its earnings report, other coal miners gained, with China Shenhua Energy Co. climbing 2% and Yanzhou Coal Mining Co. adding 4.7%.
In other markets:
The Shanghai CSI 300 Index added 41.97 points, or 1.3%, to 3,264.93
Taiwan’s Taiex Index marched forward 37.04 points, or 0.4%, to 8,545.08
Korea’s Kospi Index dropped 1.48 points to 2,012.18
Singapore’s Straits Times Index ticked up 19.44 points, or 0.7%, to 3,022.19
New Zealand’s NZX 50 improved 10.56 points, or 0.3%, to 3,375.79
Australia’s S&P/ASX 200 tacked on nine points, or 0.2%, to 4,652.40
