Hong Kong shares declined Wednesday as some property developers ended lower after a roller-coaster ride following government proposals to increase land supply, while Japanese stocks were weighed down by the yen’s strength against the U.S. dollar.
The Nikkei 225 index in Tokyo dropped 85.60 points, or 0.8%, to close at 10,579.10
Hong Kong’s Hang Seng Index gave up 83.91 points, or 0.4%, to 22,906.90
Investor sentiment in the region was muted on there being no signs of an end to the Libyan political crisis. More recently, DJIA futures were up 34 points in screen trade.
Libya’s leader Col. Moammar Gadhafi took to the Libyan airwaves Tuesday and said that he had no intention of stepping down or leaving the nation. He ordered his forces to crush an uprising that has rocked his rule of more than 40 years, and warned armed protesters they will be executed and vowed to fight to his last.
After changing direction a few times, most major Hong Kong property developers ended lower, in the wake of Financial Secretary John Tsang’s annual budget speech.
Tsang said Hong Kong’s economy grew 6.8% in 2010, exceeding the government’s earlier forecast of 6.5% and he expects the economy to grow 4%-5% in 2011. However, he added that the government will increase the supply of land for sale in 2011, putting 18 new sites up for sale in the financial year starting Apr. 1, compared with 10 sites in the current financial year.
Shares of Sun Hung Kai Properties dropped 0.7% and Cheung Kong Holdings gave up 1.3%, while Henderson Land Development Co. dropped 0.4%.
Japanese stocks were pressured lower with the yen’s recent strength, hurting exporters. Canon Inc. fell 1.6% and Honda Motor Co. lost 1.8%.
Outperforming the broader market, Mitsubishi Estate Co. ended unchanged and Mitsui Fudosan Co. slipped 0.2%, after a report in the Nikkei said Japan’s Finance Ministry plans to lease out government-owned property sites in central Tokyo.
Daiichi Sankyo fell 3.3% on disappointing earnings from its Indian unit Ranbaxy Laboratories on Tuesday.
New Zealand shares rebounded from losses suffered in the previous session after an earthquake rocked Christchurch Tuesday.
The benchmark NZX 50 index rose 0.4%, with Fletcher Building rising 0.8% as "estimates for the Christchurch rebuild grow," said Macquarie Equities broker Brad Gordon.
New Zealand Oil & Gas dropped 2.3% after reporting a first-half loss.
In foreign-exchange markets, the euro gained against the U.S. dollar on growing expectations of an interest-rate hike from the European Central Bank, said Tomohiro Nishida, a senior dealer at Chuo Mitsui Trust and Banking.
The ECB may have to rebalance its monetary policy to take account of greater risks from inflation in both commodity and asset markets, Governing Council member Yves Mersch said in an interview published Tuesday by Bloomberg.
The euro was buying $1.3721 U.S., from $1.3650 U.S. in late New York trade Tuesday, and 113.45 yen, from ¥113.07. The dollar was at ¥82.69, from ¥82.80.
CHINA
Shanghai stocks fluctuated during the session, before ending higher amid hopes for upbeat earnings for 2010.
The Shanghai CSI 300 Index regained 11.16 points, or 0.4%, to 3,174.74
Shanghai Fosun Pharmaceutical Group Co. rose 1% and Chongqing Brewery Co. rose 0.6%.
Gold miners advanced, supported by Tuesday’s strength in the yellow metal’s prices. Zijin Mining Group Co. soared 9% and Shandong Gold-Mining Co. added 5.2%.
In other markets;
Taiwan’s Taiex Index stumbled 144.73 points, or 1.7%, to 8,528.94
Korea’s Kospi Index fell 8.29 points, or 0.4%, to 1,961.63
Singapore’s Straits Times Index slipped 17.27 points, or 0.6%, to 3,001.85
New Zealand’s NZX 50 moved ahead 13.36 points, or 0.4%, to 3,372.07
Australia’s S&P/ASX 200 gave back 10.80 points, or 0.2%, to 4,845.90
