Asia markets fell Monday after data showed Chinese manufacturing activity continued to contract in April, albeit at a smaller pace, with investors also wary before the outcome of French presidential elections and upcoming global economic events.
In Japan, the Nikkei 225 Index slid another 19.19 points, or 0.2%, to 9,542.17
In Hong Kong, the Hang Seng Index plummeted 386.25 points, or 1.8%, to 20,624.40.
Losses in some Asian markets such as Hong Kong accelerated as European markets tumbled in early trading Monday.
French President Nicolas Sarkozy lost to Socialist candidate Francois Hollande in the first round of the Presidential elections, sparking concerns about the euro-zone’s debt crisis.
Shares of heavyweight China Mobile Ltd. lost 3% in Hong Kong, pulling back from the 52-week high they touched on Friday, after reporting only a modest increase in first-quarter profit.
China Overseas Land & Investment Ltd. lost 2% in Hong Kong
A number of stocks in the resource-sector stocks also declined after the HSBC data.
In Sydney, gold miner Newcrest Mining Ltd. fell 1.6% and BHP Billiton Ltd. gave up 0.5%. Cockatoo Coal Ltd. tumbled 7.3% after announcing it won’t get a planned cash injection from SK Networks.
Elsewhere, Inpex Corp. slipped 0.2% in Tokyo and Korea Zinc Co. gave up 1.1% in Seoul. Aluminum Corp. of China Ltd. fell 3.9% and Jiangxi Copper Co. lost 1.5% in Hong Kong; in Shanghai, they shed 1% and 1.3%, respectively.
Some steel makers managed to defy the trend. JFE Holdings Inc. rose 2.6% in Tokyo, while Posco climbed 1.6% in Seoul and Bluescope Steel Ltd. added 1.3% in Sydney.
JFE’s gains came despite reporting a net loss for the year ended March 31, as investors focused on the company’s cost reduction plans. Posco rose in spite of a 42% drop in first quarter profit, on news it expects an improved second-quarter.
Meanwhile, a firmer yen weighed on some exporters in Tokyo, with Nikon Corp. lost 1.8% and Nissan Motor Corp. gave up 1%.
Shares in Canon Inc. outperformed, rising 0.7%, after a Nikkei business daily report said that full-year operating profit is expected to swell by 20% following strong sales of single-lens reflex cameras.
Also moving higher, shares of Yakult Honsha Co. shot up 11.7% after a weekend report in the Nikkei newspaper that French food company Group Danone SA
CHINA
Meanwhile, HSBC’s preliminary or "flash" reading of China manufacturing Purchasing Managers’ Index showed Monday that activity improved in April from levels seen in March, but remained below the threshold of 50, indicating a contraction
In Shanghai, the CSI 300 Index lost 20.80 points, or 0.8%, to 2,606.04
Chinese property developers and financials retreated in Hong Kong after the HSBC data and amid political worries concerning Europe.
On mainland bourses, Poly Real Estate Group Co. dropped 1.6% in Shanghai and China Vanke Co. retreated 0.5% in Shenzhen.
Among financials, HSBC Holdings PLC dropped 1.8%, China Life Insurance Co. fell 2.8% and Ping An Insurance Group Co. of China Ltd. gave up 3.3% in Hong Kong; in Shanghai, China Life lost 1.8%.
In other markets;
Korea’s Kospi Index fell 2.02 points, or 0.1%, to 1,972.63
The Taiex index in Taiwan subtracted 26.06 points, or 0.4%, to 7,481.09
Singapore’s Straits Times Index subsided 32.13 points, or 1.1%, to 2,962.35
New Zealand’s NZX 50 Index shaved off 2.78 points, or 0.1%, to 3,513.45
Australia’s S&P/ASX 200 Index dropped 14.07 points, or 0.3%, to 4,352.43
