Most Asian stock markets fell on Monday, with Hong Kong and Shanghai shares giving ground amid a fresh round of concerns over Chinese economic growth and possible new measures to cool housing prices.
In Japan, the Nikkei 225 average nosed up 2.92 points to 9,354.32
Hong Kong’s Hang Seng Index dropped another 95.75 points, or 0.4%, to 21,599.50
Also weighing on sentiment across Asia, Eurogroup ministers said late Sunday the next disbursement of aid to Greece will likely wait until mid-July, pending a report on talks between Greece and the European Commission, together with the Greek parliament passing key fiscal-strategy and privatization bills.
The Japanese market garnered support from utility stocks. Advancers in Tokyo included Tokyo Electric Power Co., higher by 4%, Kansai Electric Power Co. up 7.8%, and Chubu Electric Power Co. rising 7.9%.
The sector has been under pressure since March, when a massive earthquake and subsequent tsunami damaged Tepco’s Fukushima Daiichi nuclear-power complex, resulting in radiation leaks.
However, the Japanese ratings-agency arm of Moody’s downgraded Tepco’s debt following the market’s close, citing "further escalation of costs and damages from the continuing Fukushima nuclear plant disaster and increased concern that government support measures may not completely protect creditors from losses."
Other notable advancers in Tokyo included car maker Mazda Motor Corp., which jumped 2.1% after it said Friday it expected to swing back to profit this year. Olympus Corp., gained 4.3% after it said late Friday that it expects a jump in fiscal-year profit.
Sony Corp. ended the session down 2.7%.
Energy and resource companies fell in Australian trading, with Caltex Australia Ltd. down 6.9% after the firm said that it expects lower fiscal first-half profit compared to 2010.
Oil prices slid in Nymex electronic trading during Asian hours Monday, moving well below the $92-U.S.-a-barrel level, while gold and copper futures also declined, as the U.S. dollar index gained some ground
CHINA
Credit Suisse on Monday cut its forecast for China’s 2012 gross domestic product growth to 8.5%, from 8.9%, while saying: “We believe persistent inflation, slowing growth and continued tightening is likely to play out not only in the second half of 2011, but also well into 2012.”
Shanghai’s CSI 300 Index slipped 17.26 points, or 0.6%, to 2,874.90
The broker also downgraded China’s banking sector to underweight from overweight, cutting Agricultural Bank of China Ltd. -- down 0.8% in Hong Kong -- to underperform from outperform, and Bank of China Ltd. -- trading down 0.5% -- to neutral from outperform.
However, Hong Kong real-estate shares made far sharper falls Monday, weighed by the Credit Suisse concerns and possible new measures to cool local property prices.
The Wall Street Journal reported Sunday that the territory may bring back a controversial subsidized housing program to curb property price inflation.
Adding fuel to the fire, Hong Kong Financial Secretary John Tsang said Monday that the local real-estate market was "unusually strong" and may be developing into a price bubble.
Among the worst hit in the sector, Cheung Kong Holdings Ltd. fell 3.8%, Henderson Land Development Co. dropped 3.5%, and Sino Land Co. ended down 3.3%.
In other markets;
Korea’s Kospi Index fell 12.28 points, or 0.6%, to 2,019.65
Taiwan’s Taiex Index jettisoned 105.42 points, or 1.2%, to 8,530.68
Singapore’s Straits Times Index regained 8.32 points, or 0.3%, to 3,013.60
New Zealand’s NZX 50 Index docked 2.10 points to 3,467.49
Australia’s S&P/ASX 200 Index deducted 33.20 points, or 0.7%, to 4,451.70.
