Asian stocks dropped Tuesday after Chinese trade data reaffirmed weakening domestic demand in the country, with investors taking little encouragement from news of Europe’s fresh lifeline to Spain.
Japan’s Nikkei 225 Index deducted 39.15 points, or 0.4%, to close at 8,857.23
The Hang Seng Index in Hong Kong lost 31.73 points, or 0.2%, to 19,396.36
Resource firms posted notable declines in Asia following the drop in imports from key trading partner China.
In Sydney, global miners BHP Billiton Ltd. and Rio Tinto Ltd. each lost 0.8%, while copper producer PanAust Ltd. sank 4.9%; Korea Zinc Co. lost 1.9% in Seoul.
In Tokyo, shares of Mitsubishi UFJ Financial Group Inc. dropped 1% after the Nikkei reported that its core banking unit had suspended two traders suspected of prior involvement in the manipulation of the London interbank offered rate
CHINA
Regional stocks turned south after data showed China’s import growth slowed more than expected in June, while the trade surplus widened sharply in June, as exports continued to grow in double-digit percentage terms.
Shanghai’s CSI 300 index dipped 9.33 points, or 0.4%, to 2,406.71
Aluminum Corp. of China Ltd. and Jiangxi Copper Co. each shed 1.5% in Hong Kong. In Shanghai, Jiangxi slipped 0.3% and Zijin Mining Group Co. lost 1.3%.
Refiners outperformed in Shanghai following a report that the National Development and Reform Commission will on Wednesday cut gasoline and diesel prices by about 4.4% to 4.6% amid falling crude-oil prices. The advance came as the price cut will be less than the extent of drop in China’s crude basket.
China Petroleum & Chemical Corp., or Sinopec, rose 0.7% and PetroChina Co. gained 1.1% in Shanghai. In Hong Kong, PetroChina climbed 0.1%, but Sinopec declined 1.2%.
Concerns that regulations covering Chinese property market weren’t about to be loosened also weighed on the sector, which has recorded strong gains so far this year.
On mainland exchanges, Gemdale Corp. fell 1.6% and Poly Real Estate Group Co. tumbled 3.6% in Shanghai, while China Vanke Co. slid 1.2% in Shenzhen. China Overseas Land & Investment Ltd. slipped 0.2% in Hong Kong.
In other markets
Korea’s Kospi Index docked 6.68 points, or 0.4%, to 1,829.45
Singapore's Straits Times Index moved higher 35.54 points, or 1.2%, to 2,964.62
Taiwan’s Taiex Index doffed 58.61 points, or 0.8%, to 7,251.35
New Zealand’s NZX index gave back 15.47 points, or 0.4%, to 3,464.72
Australia’s ASX Index lost 20.25 points, or 0.5%, to 4,098.02
