Concerns about slowing global growth and the potential need for tighter monetary policy soured market sentiment in Asia on Tuesday, notably weighing on commodity, construction and shipping firms.
The Nikkei 225 Index restored 22.25 points, or 0.3%, to 9,091.54
The Hang Seng Index in Hong Kong took on a mere 3.98 points to 20,698.68
Daiwa Capital Markets said the growth outlook in Asia was hindered by the latest Federal Reserve policy easing, or QE3, as regional central banks would now need to tighten credit conditions to cool building inflationary pressures. The research house lowered its 2013 growth forecasts for Hong Kong, Singapore, South Korea, Taiwan and India.
Also dragging on sentiment, U.S. bellwether construction-machinery major Caterpillar Inc. cut its yearly earnings forecast late Monday, saying it expects modest economic growth in the next few years.
Japanese construction firms lost ground on Tuesday, with Kawasaki Heavy Industries Ltd. down 1.8%, and Komatsu Ltd. falling 1%.
Shipping firms fell in South Korea, with STX Pan Ocean Co. losing 4.6% and Hanjin Shipping Co. down 1.9%.
Rio Tinto Ltd. retreated 1.8% while gold miner Newcrest Mining Ltd. gave up 1.3% in Australian trade after it was downgraded to neutral at J.P. Morgan.
Commodity firms were dragging in Hong Kong as well, with Zijin Mining Group Co., another gold extractor, down 0.3%, and Aluminum Corp. of China Ltd. rising 0.3%, reversing an earlier decline.
Italian fashion group Prada SpA dropped 3.5% in Hong Kong after it reported a 59% increase in first-half profit but as revenue growth slowed from the previous quarter.
Emerging-markets-focused banking group Standard Chartered PLC fell 2.0%, following a Financial Times report that Singapore’s sovereign-wealth fund Temasek Holdings Pte. may sell off its stake.
On the plus side, casino operator Sands China Ltd. rose 1.2% as investors positioned ahead of China’s Golden Week holiday next week that may lead to an influx into Macau’s casinos.
Similarly, retailers also gained amid some expectations that spending will increase over the holiday week, with apparel firm Esprit Holdings Ltd. rising 4.3% ahead of results due later this week.
In Tokyo trading, Sharp Corp. shares ended a choppy session with a 0.5% gain.
The firm plans to slash a total of 10,966 employees in Japan and overseas, while selling its assets to generate 213.1 billion yen ($2.7 billion U.S.) by the end of next March. according to the company’s restructuring plan obtained by Kyodo News.
In other Hong Kong action, shares of Hong Kong Exchanges & Clearing (HKEx) ended 2.6% lower, ranking as the biggest percentage loser among the Hang Seng constituents on news that it would raise $500 million U.S. by issuing convertible bonds to help support its purchase of the London Metal Exchange.
Battery and electric car maker BYD Co Ltd. fell 3.7% to HK$14.70 after research house CLSA lowered its price target on the share to 41 Hong Kong cents, or by about 97% from recent levels.
In other markets
Shanghai’s CSI 300 index subsided 5.36 points, or 0.2%, to 2,210.15
Korea’s Kospi index dropped 12.03 points, or 0.6%, to 1,991.41
The Singapore Straits Times Index lopped off 0.80 points to 3,067.13
Taiwan’s Taiex Index docked 34.17 points, or 0.4%, to 7,734.13
New Zealand’s NZX index tacked on 16.16 points, or 0.4%, to 3,825.32
Australia’s ASX Index lost 12.61 points, or 0.3%, to 4,372.86
