Asia stocks traded in a downbeat fashion Tuesday as dividend worries weighed on Japanese utility firms while concerns over lackluster third-quarter earnings dragged on shares in Shanghai.
Japan’s Nikkei 225 Index gained 3.54 points to 9,014.25, after another slight gain yesterday.
Markets in Hong Kong had the day off.
The Hong Kong Monetary Authority intervened in the currency markets for a second time in less than a week on Tuesday, stepping in to sell the Hong Kong dollar in an attempt to halt appreciation of the currency after it traded near the lower channel of its trading band against the U.S. dollar
The authority sold $3.914 billion Hong Kong dollars ($505 million U.S), on the heels of having sold last Friday HK$4.67 billion during New York trading, its first intervention since 2009.
The third and final debate between U.S. President Barack Obama and Republican challenger Mitt Romney took place during Asian morning trade. U.S. stock futures edged lower after the debate wrapped up, then deepened further.
Both contenders commented on China, with Obama saying he will insist that Beijing play by the same rules as everyone else. Romney echoed those comments and reiterated his pledge to immediately label China a currency manipulator should he be elected.
Dividend concerns weighed on the Japanese utility sector, as Kansai Electric Power Co. fell 13% after a Nikkei report that the electricity supplier won’t pay a dividend at the end of the fiscal year. This would be its first dividend omission in 61 years.
Kansai Electric’s rivals also traded weak, with shares of Chubu Electric Power Co. shedding 9.9% and Tokyo Electric Power Co. falling 1.5%.
Energy-sector firms likewise declined in Tokyo, with JX Holdings Inc. down 1.6% and Japan Petroleum Exploration Co. down 1%. The pullback came after a 1.5% drop for crude-oil futures in New York on Monday.
In the currency market, the U.S. dollar briefly traded over 80 Japanese yen for the first time since early July, up from ¥79.91 on Monday, before falling back to ¥79.77 as immediate central bank-easing hopes faded. The euro reached its highest point against the yen since May but then also retreated.
Despite the yen’s rebound, the dollar was still at relatively elevated levels against the Japanese currency, and some exporters held their gains in Tokyo on Tuesday, with Casio Computer Co. trading up 2.8%, Nikon Corp. adding 1.6% and Panasonic Corp. nudging ahead by 0.6%.
Meanwhile, shares of Fuji Heavy Industries Ltd. maker of Subaru brand vehicles, gained 3.8% after raising its net profit view to ¥40 billion from a prior estimate of ¥23 billion.
In South Korea, steel makers were adding pressure to the market, with Posco, the world’s fourth-largest producer, trading 2.1% lower ahead of its earnings report due late Tuesday.
Standard & Poor’s downgraded its long-term-debt rating on Posco to BBB+ from A- late Monday, saying that the firm will struggle to secure financing and that its operational performance will likely be weaker than previously expected.
Among its rivals, Hyundai Steel Co. declined 1.7% while Dongbu Steel Ltd. eased 0.1%.
In Australia, commodity extractors underpinned gains for Sydney stocks, with Oz Minerals Ltd. up 1.9% after saying that it’s on track to meet its fiscal-year production targets for copper and gold.
Also in the sector, Fortescue Metals Group Ltd. advanced 1.7% while Rio Tinto Ltd. rose 0.1%.
CHINA
Mainland-listed Chinese commodity firms were weak, with Aluminum Corp. of China trading down 1% in Shanghai.
The Shanghai CSI 300 Composite Index collapsed 29.52 points, or 1.3%, to 2,312.08
Mainland steel makers were also lower amid expected sluggish earnings and what’s believed to be government plans for a forced consolidation of the sector. Shares of Angang Steel Co. fell 1.4% as Baoshan Iron & Steel retreated 0.2%.
And Air China Ltd. dropped 1% after abandoning a plan to raise funds in a private placement with China National Aviation Holding Co., its state-owned parent. Tuesday’s session marked the first for the Beijing-based carrier since its shares were suspended earlier in October.
In other markets
The Singapore Straits Times Index picked up 5.26 points, or 0.2%, to 3,050.93
Korea’s Kospi index dipped 14.78 points, or 0.8%, to 1,926.81
Taiwan’s Taiex Index fell 35.56 points, or 0.5%, to 7,337.48
The NZX 50 Index returned from a long weekend to add 16.10 points, or 0.4% to 4,004.26
Australia’s ASX Index added 2.07 points to 4,543.07.
