Japanese and Australian stock markets managed gains Wednesday, but Chinese and Korean markets traded solidly lower, as concerns about Europe’s ability to tackle its debt problems kept buying sentiment in check.
In Tokyo, the Nikkei 225 Index inched up 5.70 points to 8,615.65
In Hong Kong, the Hang Seng Index gave back 119.49 points, or 0.7%, to 18,011.10
Describing Asian stock markets on Wednesday as "listless," DBS Vickers director Peter Lai said investors want to see more developments on Europe’s debt situation before they are willing to take a more positive stance on the region’s equities.
Stocks had climbed sharply around the globe Tuesday after reports suggested that governments and financial institutions were working to increase the size of a bailout fund for Europe and to recapitalize selected banks.
However, a Financial Times report out near the end of the U.S. trading day raised doubts that a cohesive solution for Europe was near, suggesting there were deep rifts in the region over the extent of private participation in the latest bailout for Greece.
The concerns helped weigh on Chinese banks, which were among the leading decliners in Hong Kong.
Industrial & Commercial Bank of China Ltd. lost 3.8%, Bank of China Ltd. fell 3%, and China Construction Bank Corp. traded down 2.3%.
Domestic issues also played a role in banks’ losses. Credit Suisse analysts said that, while valuations are currently cheap for the Chinese banking sector, any future rallies for the shares are likely to be short-lived, citing expectations that non-performing loans will rise while China’s economic growth will slow.
The drop for Chinese banks contrasted with gains for Japanese financials, with Mitsubishi UFJ Financial Group Inc. closing 3% higher, Nomura Holdings Inc. up 3.6% and Daiwa Securities Group Inc. 2.9% higher.
Many real-estate firms were under pressure in Hong Kong, with Hang Lung Properties Ltd. down 2.8% and Agile Property Holdings Ltd. lower by 2.3%.
On the other hand, most Asian energy firms were higher following a steep rally for benchmark Nymex oil futures on Tuesday, even as losses for crude Wednesday took back some of those gains.
JX Holdings Inc ended 2.6% higher in Tokyo, while energy giant Woodside Petroleum Ltd. traded up 3.5% in Sydney, and China’s Cnooc Ltd. jumped 3.9% in Hong Kong.
In Shanghai, shares of Great Wall Motor Co. fell 8.9% in the stock’s trading debut, after it raised approximately $620 million U.S. in an initial public offering.
In other markets;
Shanghai’s CSI 300 Composite Index slid 27.29 points, or 1%, to 2,610.59
Taiwan’s Taiex Index tacked on 57.03 points, or 0.8%, to 7,146.98
Korea’s Kospi Index eased 12.62 points, or 0.7%, to 1,723.09
Singapore’s Straits Times Index fell 24.74 points, or 0.9%, to 2,701.17
New Zealand’s NZX 50 Index improved 5.89 points, or 0.2%, to 3,298.72
Australia’s S&P/ASX 200 Index added 34.90 points, or 0.9%, to 4,039.50
