Most Asian markets let early gains fade as they retreated Monday, with Japanese auto stocks hit after Honda Motor Co. cut its forecast, while Hong Kong developers slumped after the local government slapped tax increases on the property sector.
Japan’s Nikkei 225 Index subtracted 3.72 points to 8,929.34
In Hong Kong, the Hang Seng index deducted 34.52 points, or 0.2%, to 21,511.05. This, after the local government raised the stamp duty on property transactions and introduced a buyers’ tax on purchases by non-local residents and companies. The measures are aimed at cooling prices that have been boosted by strong demand from mainland Chinese buyers, and amid ample liquidity in the domestic market.
The broad declines came amid worries about the impact of Hurricane Sandy on the U.S. east coast this week, with U.S. markets set to be closed Monday in the interest of safety of people and communities from the monster storm
Developers such as Cheung Kong Holdings Ltd., Sun Hung Kai Properties Ltd., New World Development Co., Henderson Land Development Co. and Sino Land Co.— all components of the Hang Seng Index — tumbled between 4.5% and 6.5%. Their losses also offset the impact of some positive earnings reports.
China Petroleum & Chemical Corp., also known as Sinopec, gained 2.9% in Hong Kong after its third-quarter net profit fell 9.4% compared to the year-ago period but exceeded analyst expectations. Its Shanghai listed shares added 1.1%.
State-controlled China Construction Bank Corp.’s rose 0.9% in Hong Kong after its third-quarter net profit rose 12% from a year earlier.
Also gaining ground in Hong Kong after updating investors, China Telecom Corp. climbed 0.9% after saying its January-September net profit fell 8% due to rising costs.
Shares of QBE Insurance Group Ltd., which has operations in the U.S., fell 0.7% in Sydney as Hurricane Sandy approached New York.
Over in Tokyo, shares of Honda Motor Co. dropped 4.7% in Tokyo after the auto giant cut its fiscal-year earnings guidance to 375 billion yen ($4.7 billion U.S.) from a prior forecast of ¥470 billion due to lower-than-expected sales and a strong Japanese currency.
The performance also pushed shares of other auto makers lower, with Toyota Motor Corp. dropping 1.6%, and Nissan Motor Co. retreating 2.2%.
In Seoul, Kia Motors Corp. tumbled 4% after late last week announcing much weaker-than-expected third-quarter results.
Shares of NTT DoCoMo Inc skidded 6% in Tokyo after the mobile telecom firm cut its full-year operating profit outlook.
Japan’s second-largest financial group Sumitomo Mitsui Financial Group Inc. rose 0.8% after raising its half-year profit forecast late Friday to ¥330 billion from a prior ¥250 billion, citing lower credit costs and gains in bond trading.
Nippon Sheet Glass Co. advanced 3.3% after the Nikkei business daily reported the firm is expected to post a quarterly loss of around ¥3 billion, which would be better than Nippon Sheet Glass’s current forecast for a quarterly loss of ¥4.5 billion. In the year-ago period, the firm posted a profit of ¥5.5 billion.
NEC Corp. jumped 3.6% after announcing late last week that its second-quarter net profit rose 38% from the year-ago period.
Real-estate firms were higher Monday in Tokyo ahead of a policy decision from the Bank of Japan due out Tuesday, with Mitsui Fudosan Co. climbing 1.5% and Mitsubishi Estate Co. higher by 1.3%.
In other markets
The Shanghai CSI 300 Composite Index fell 12.05 points, or 0.9%, to 2,235.85
In Singapore, the Straits Times Index shaved off 27.90 points, or 0.9%, after a long weekend to 3,029.61
Korea’s Kospi index eked up 0.09 points to 1,891.52
Taiwan’s Taiex Index shrank 42.39 points, or 0.6%, to 7,091.67
The NZX 50 Index fell 32.48 points, or 0.8%, to 3,951.30
Australia’s ASX Index added 4.48 points, or 0.1%, to 4,476.86
