Chinese stocks finished at their lowest level in nearly three years to lead broad losses among major Asian markets Thursday, as worries about the property sector and tight liquidity conditions hit investor sentiment.
Japanese and Australian stocks also declined as investors turned more cautious after Wednesday’s rally amid more fears over the European debt situation, while energy producers helped lift Hong Kong stocks on rising crude-oil prices.
Tokyo’s Nikkei 225 Index sifted off 71.40 points, or 0.8%, to 8,488.71
In Hong Kong, the Hang Seng Index marched ahead 86.10 points, or 0.5%, to 18,813.40
The performance in Asia followed a mixed finish for U.S. benchmark indexes and after European banks were sold off Wednesday as Italian lender UniCredit SpA sold new shares at a sharp discount. There was also caution ahead of a French auction of long-term debt later Thursday.
Several financial stocks were hurt, with Mitsubishi UFJ Financial Group Inc. losing 1.2% in Tokyo, National Australia Bank Ltd. falling 1.9% in Sydney and Shinhan Financial Group Co. dropping 0.9% in Seoul.
Japanese technology shares lost ground as the euro weakened against the yen.
Sony Corp. lost 2.2% and Casio Computer Co. gave up 1.5%.
Chip maker Elpida Memory Inc. sank 7.4%, after the company confirmed a report that it is in discussions with some of its clients about possibly receiving financial support from them.
Commodity-linked stocks mostly outperformed in Hong Kong, but declined in Sydney after recording solid gains Wednesday.
Cnooc Ltd. climbed 2.8% to extend a string of recent gains, while PetroChina Co. added 1.6% in Hong Kong. China Overseas Land & Investment Ltd. declined 2.5% in Hong Kong.
In Sydney, BHP Billiton Ltd. dropped 1.1% and Alumina Ltd. lost 3%.
CHINA
In Shanghai, the CSI 300 Index dipped 22.37 points, or 1%, to 2,276.39
Chinese developers broadly declined after property major China Vanke Co. Wednesday reported a 30% tumble in December sales. China Vanke shares dropped 1.1% and Oceanwide Real Estate Group Co. lost 1.5% in Shenzhen. Poly Real Estate Group Co. eased 2.5% in Shanghai.
Some Chinese banks bucked the trend, with China Construction Bank Corp. rising 1.8% in Shanghai.
In other markets;
Taiwan’s Taiex Index gained another 47.89 points, or 0.7%, to 7,130.86
Korea’s Kospi Index shed 2.48 points, or 0.1%, to 1,863.74
Singapore’s Straits Times Index added two points, or 0.1%, to 2,713.02
New Zealand’s NZX 50 Index subtracted 3.99 points, or 0.1%, to 3,284.12
Australia’s S&P/ASX 200 Index lost 45.10 points, or 1.1%, to 4,142.70
