Asian markets mostly declined Monday as a surprisingly large Chinese trade deficit stoked some concerns about demand for the country’s exports, with Japanese stocks pulling back after sharp gains recently.
In Japan, the Nikkei 225 Index faded 39.88 points, or 0.4%, to 9,889.86.
In Hong Kong, the Hang Seng Index gained 48.18 points, or 0.2%, to 21,134.20, after a roller-coaster ride, aided by strong gains in shares of heavyweight China Mobile Ltd. and mainland property major China Resources Land Ltd.
The region’s performance came despite a positive finish on Wall Street Friday, following a better-than-expected jobs report. Also on Friday, Greece announced a bond exchange deal with its private creditors to reduce its debt, a move that paves the way for the country to receive a second tranche of bailout funding.
But Hong Kong stocks finished higher, aided by a 3.9% rise for China Mobile after HSBC and Credit Suisse upgraded their respective ratings on the stock. Also providing some support to the market, shares of China Resources Land gained 0.4% on its 2011 results and upbeat outlook for 2012.
Elsewhere in the region, Japanese stocks let early gains fade away after strong recent gains, with Fast Retailing Co. and Japan Real Estate Investment Corp. dropping 0.5% each, while Kyocera Corp. shed 0.7%.
Losses across the key shipbuilding sector dragged on the broader index in Seoul. Hyundai Heavy Industries Co. dropped 2.5% and Daewoo Shipbuilding & Marine Engineering Co. gave up 2.5%.
Many of the region’s resource stocks also fell as a firmer dollar weighed on commodity prices.
Cnooc Ltd. shed 0.8% in Hong Kong and PetroChina Co. lost 0.5% in Shanghai, while in Sydney, Rio Tinto Ltd. and Woodside Petroleum Co. dropped 0.6% and 1.2%, respectively.
Shares in Cockatoo Coal Ltd. jumped 12.3% in Sydney after South Korea’s SK Networks Co. said it’s aiming to lift its stake in the firm to 40%
CHINA
The day’s broad losses came after China reported a larger-than-expected trade deficit of $31.48 billion U.S. in February, swinging back from a surplus of $27.28 billion U.S. in January. The net deficit in the first two months of the year weighed on sentiment.
The Shanghai CSI 300 erased 9.90 points, or 0.4%, to 2,654.40
Following China’s trade deficit in February, ports operator Cosco Pacific Ltd. fell 1.5%, shipping major China COSCO Holdings Co. dropped 1.8%, and merchandise sourcing firm Li & Fung Ltd. lost 1.5% in Hong Kong.
Chinese railway-related stocks also fell following reports that a section of high-speed railroad had collapsed after heavy rain. Shares in China Railway Group Ltd. sank 5.4% and CSR Corp. Ltd. dropped 4.1%
In other markets;
Korea’s Kospi Index shed 15.80 points, or 0.8%, to 2,002.50
The Taiex index in Taiwan subtracted 88.46 points, or 1.1%, to 7,927.55
Singapore’s Straits Times Index slid 0.97 points to 2,962.18
New Zealand’s NZX 50 Index gained 18.55 points, or 0.5%, to 3,452.32
Australia’s S&P/ASX 200 Index moved lower 15.30 points, or 0.4%, to 4,196.69
