Most Asian markets fell Tuesday as concern about the fallout from a territorial dispute between regional economic giants China and Japan dragged further on investor sentiment, with several auto makers stocks among those falling.
The Nikkei 225 Index returned from holiday to slide 35.62 points, or 0.4%, to 9,123.77
The Hang Seng Index in Hong Kong gave back 56.18 points, or 0.3%, to 20,601.93
The losses came as several Japanese firms suspended some manufacturing operations in China Tuesday
One expert said Sino-Japan tensions remained a short-term concern and were draining confidence in Asia. The escalation in the conflict also added to separate fears about the pace of growth in China.
The drop for regional equities followed a weak session overnight on Wall Street. Unease over geopolitical concerns kept U.S. investors cautious at the start of the week as demonstrations in the Middle East and Africa, coupled with protests connected to the Sino-Japanese dispute, continued
In Tokyo, major index component Fast Retailing Co. slumped 7% on reports it had shut several of its stores on the mainland due to anti-Japanese protests.
Shares of Seven & I Holdings Co. fell 1.4% as the convenience store chain also shuttered some outlets in China.
Toyota Motor Co. Nissan Motor Co. and Honda Motor Co. also reportedly halted some operations. The news sent Nissan stock down 5% and Honda 2.5% lower, while Toyota slipped 0.6%.
Losses for miners and energy firms weighed in Sydney amid more concern about declining commodity prices. The Australian government cut its forecasts for resource exports for this financial year by 10% due to falling prices.
Energy major Oil Search Ltd. sank 1.8% and copper producer PanAust Ltd. eased 1.3%.
Mining giant BHP Billiton Ltd. dropped 0.6% in a weak broader market. The miner said Tuesday it’ll freeze the base salaries of its top management.
Fortescue Metals Group Ltd. was a bright spot, with shares surging 17.1% after the iron-ore producer secured a new debt facility
Meanwhile, Sino Land Co. added 0.6% as Deutsche Bank named the stock among its top Hong Kong property picks, and said it expects "near-term, upward momentum in property prices due to higher liquidity."
CHINA
Shanghai’s CSI 300 index dropped 23.47 points, or 1%, to 2,235.24
Chinese automobile stocks were also hurt, with shares of BYD Co. Ltd. tumbling 4% and Dongfeng Motor Group Co. dropping 5.1% in Hong Kong.
Strength for property plays limited broader losses, with China SCE Property Holdings Co. up 1.2% and Guangdong Investment Ltd. rising 1.9%.
In other markets
Korea’s Kospi index forged ahead 2.61 points, or 0.1%, to 2,004.96
The Singapore Straits Times Index slipped 10.74 points, or 0.4%, to 3,067.98
Taiwan’s Taiex Index demurred 27.96 points, or 0.4%, to 7,734.26
New Zealand’s NZX index tripped 12.76 points, or 0.3%, to 3,804.48
Australia’s ASX Index subtracted 7.80 points, or 0.2%, to 4,394.73
