Chinese stocks were fairly flat Monday as investors shrugged off a well-anticipated increase in banks’ reserve requirement ratio over the weekend, while Japanese shares were pressured by a strengthened yen and caution ahead of corporate results.
The Nikkei 225 Index dropped 34.87 points, or 0.4%, to end a short week’s first session at 9,556.65
Stocks in Tokyo finished lower after making several failed attempts to edge higher during the choppy trading session.
Canon Inc. lost 1.4% and Nissan Motor Co. dropped 1.1%.
Tokyo Electric Power Co. gave up 0.4% after it said it may take six to nine months to stop radiation leaks and stabilize nuclear reactors at the March 11 earthquake-damaged Fukushima Daiichi power plant.
Hong Kong’s Hang Seng Index sifted off 177.76 points, or 0.7% to 23,830.30
In Hong Kong, local property developers extended their recent losing streak on lingering worries about their outlooks, after some banks last week raised their mortgage rates. Sun Hung Kai Properties Ltd. dropped 1.7% and Cheung Kong Holdings Ltd. fell 0.9%.
China Telecom Corp. dropped 1.6% after Credit Suisse downgraded the stock to underperform, saying the company’s plan to acquire telecommunication-network assets from its parent "may well destroy value."
In currency trade, the euro remained under pressure against the U.S. dollar after National Coalition Party Finance Minister Jyrki Katainen was declared the winner in an election late Sunday in Finland, which saw the euro-skeptic True Finns emerge as Finland’s third-largest party.
The True Finns -- who are against bailouts for deeply-indebted euro-zone countries -- won 19% of the vote, improving the chance they will be part of Finland’s new coalition government. The euro fell on concern that the new Finnish government could oppose further bailouts for euro-zone countries, which could potentially prevent the European Union from granting new rescue loans.
The single currency was at $1.4330 U.S. from $1.4432 U.S. late Friday in New York, and at 118.70 yen from ¥119.95. The dollar was at ¥82.84, compared with ¥83.16.
CHINA
Shanghai’s CSI 300 Composite Index docked 0.49 points to 3,358.44, despite the People’s Bank of China’s decision Sunday to raise lenders’ RRR by 0.5 percentage points to drain excess money from the banking system.
The move, the PBOC’s fourth such hike in 2011, led one analyst to say that the end of China’s policy tightening was in sight.
Most banks ended lower after a roller-coaster ride, with Industrial & Commercial Bank of China Ltd sliding 0.6% and Bank of Communications Co. falling 0.7%. In Hong Kong, Agricultural Bank of China Ltd. fell 2.2% and China Construction Bank Corp. gave up 0.8%.
Shares of several Chinese property developers rose on mainland bourses as inexpensive valuations attracted investors. Meanwhile, official data showing newly-built home prices continued to rise in March in a majority of Chinese cities, although the number of cities that saw the uptrend declined from February.
China Vanke Co. added 0.7% in Shenzhen, while Gemdale Corp. rose 1.9% and Poly Real Estate Group Co. added 1.3% in Shanghai.
Gains in petrochemical producers also aided the market on hopes that robust demand will support product prices. Shares of China Petroleum & Chemical Corp. rose 1.8% in Shanghai.
In other markets;
Korea’s Kospi Index leaned lower by 9.13 points, or 0.2%, to 2,137.72
Taiwan’s Taiex Index shed 3.64 points to 8,714.48
Singapore’s Straits Times Index was down 8.92 points, or 0.3%, to 3,144.19
New Zealand’s NZX 50 gained 12.49 points, or 0.4%, however, to 3,465.17
Australia’s S&P/ASX 200 regained 9.80 points, or 0.2%, to 4,861.90
