Asian stocks traded sharply lower Tuesday, reacting to news that a fresh European aid plan may take longer than hoped, and to Chinese data suggesting monetary easing from Beijing may take a while.
In Tokyo, the Nikkei 225 Index lost 137.69 points, or 1.6%, to end Tuesday at 8,741.91
In Hong Kong, the Hang Seng Index reversed itself and collapsed 797.53 points, or 4.2%, to 18,076.50
Hong Kong-listed mainland Chinese banks reacted negatively to the data, with Agricultural Bank of China Ltd. losing 7.9%, Industrial & Commercial Bank of China Ltd. dropping 6.1%, and China Merchants Bank Co. down 7.3%.
However, Asian shares were already trading well into negative territory before the Chinese numbers were released, weighed by German officials downplaying the chances for a fresh European aid plan to be ready for Sunday’s European Union summit, as markets had hoped.
Dimmer prospects for a quick European rescue plan hit Japanese exporters, particularly in the tech space, which also suffered from the U.S. dollar’s fall below the 77-yen level.
NEC Corp. closed 2.9% lower, Toshiba Corp. also lost 2.9%, Elpida Memory Inc. fell 3.6%, and Fujitsu Ltd. dropped 2.6%.
Weaker base-metal prices dragged down many resource shares across the region, with Chinese issues among the worst hit.
In Hong Kong, Aluminum Corp. of China Ltd., or Chalco dropped 10.6%, Jiangxi Copper Co. fell 11.6%, and Angang Steel Co. skidded 15.1%.
Australian miners likewise sold down. BHP Billiton Ltd. lost 3.3%, Rio Tinto Ltd. fell 5.3%, Fortescue Metals Group Ltd. dove 9.2%, and Alumina Ltd. was down 4.7%.
Among the few regional gainers, Australia’s Telstra Corp. advanced 0.6% as its shareholders approved the firm’s participation in the government’s National Broadband Network (NBN) project.
Telstra also said it would consider a share buyback once the NBN transaction is complete.
CHINA
Shanghai’s CSI 300 index deducted 74.74 points, or 2.8%, to 2,592.21
China’s third-quarter gross domestic product rose 9.1% from a year earlier, marking a slowdown from the second quarter’s 9.5% gain and slightly below expectations for 9.2% growth.
However, September industrial production and retail sales both rose more than expected.
Industrial output was up 13.8% from August’s 13.5%, and retail sales rose 17.7% from 17% the month before.
Forecasts had called for rises of 13.3% and 17%, respectively, and the robust results suggested any policy easing by China’s central bank would be unlikely in the near term.
In other markets;
Taiwan’s Taiex Index faded 101.64 points, or 1.4%, to 7,359.48
Korea’s Kospi Index fell 26.28 points, or 1.4%, to 1,838.90
Singapore’s Straits Times Index let go of 54.28 points, or 2%, to 2,724.69
New Zealand’s NZX 50 Index dumped 37.85 points, or 1.1%, to 3,279.11
Australia’s S&P/ASX 200 Index decreased 88.50 points, or 2.1%, to 4,186.90
