Asian markets retreated Tuesday as Spain’s financial problems cast a fresh shadow over Europe’s economic outlook, with Japanese and Chinese stocks leading broad regional losses.
Japan’s Nikkei 225 Index subtracted 65.15 points, or 0.8%, to close at 8,655.87
The Hang Seng Index in Hong Kong stepped back 11.14 points, or 0.1%, to 19,416.67
The performance came against the backdrop of unrelenting worries over the euro-zone, after Spanish bond yields Monday hit a euro-era high, and data showed bad loans also spiked, fuelling fears the country may require a sovereign bailout.
Investors also awaited the outcome of the Group of 20 summit in Mexico. Ahead of the formal talks Monday, U.S. President Barack Obama and German Chancellor Angela Merkel agreed to work together to stabilize the region.
The G-20 communique was set to promise "all necessary measures" to help resolve the European debt crisis, according to reports citing a draft version of the document.
A stronger Japanese yen pressured some blue-chip exporters in Tokyo, which pared previous-session gains. The U.S. dollar traded below ¥79 for much of the session, while the euro remained under ¥100.
Panasonic Corp. lost 1.4%, Canon Inc. retreated 1.2%, and Toshiba Corp. gave up 1.4%.
Among auto makers, Mazda Motor Corp. fell 1.9% and Honda Motor Co. traded down 1.2%.
In Seoul, where LG Electronics Inc. declined 0.6% and LG Display Co. shed 1.1%.
Tokyo-listed shares of Nomura Holdings Inc. lost 1.8%, after the broker was excluded from underwriting a share sale of Japan Tobacco Inc., reportedly worth $6 billion U.S. or more. Japan Tobacco finished down 1.3%.
Banks were likewise weaker in Hong Kong. Major index component HSBC Holdings PLC dropped 0.8% and Hang Seng Bank Ltd. gave up 0.8%.
Also in Hong Kong, Tsingtao Brewery Co. tumbled 7.8% after a Dow Jones Newswires report that a major shareholder was paring the stake in the company by selling 32 million shares.
Losses for resource firms dragged in Sydney. Iron-ore producer Fortescue Metals Group Ltd. gave up 2.4%, and copper miner PanAust Ltd. fell 2.4%.
Energy firms also sold down, with Woodside Petroleum Ltd. losing 1.7% and Santos Ltd. off by 0.7%, as Nymex crude-oil futures dropped below $84 a barrel in electronic trading.
Sydney-traded shares of Fairfax Media Ltd. plunged 8.5% one day after the newspaper publisher announced a three-year restructuring initiative that includes slashing 1,900 jobs.
On Tuesday, Australian Deputy Prime Minister Wayne Swan raised questions about the independence of Fairfax newspapers, charging top shareholder Gina Rinehart with injecting political views into the coverage.
In other markets
Shanghai’s CSI 300 Composite Index sifted off 22.59 points, or 0.9%, to 2,558.62
Korea’s Kospi Index eked ahead 0.06 points to 1,891.77
Singapore's Straits Times Index gained 18.19 points, or 0.6%, to 2,842.41
Taiwan’s Taiex Index docked 8.37 points, or 0.1%, to 7,273.13
New Zealand’s NZX index added 24.71 points, or 0.7%, to 3,430.38
Australia’s ASX Index faded 13.57 points, or 0.3%, to 4,123.33
