Most Asian markets ended lower on Monday, with Japanese shares sliding back from last week’s multi-year peaks as a two-day meeting at the Bank of Japan got underway.
In Japan, the Nikkei 225 Index dove 165.56 points, or 1.5%, to 10,747.74
In Hong Kong, the Hang Seng index fell 10.87 points, or 0.1%, to 23,590.91
The drop in Japan came as the dollar weakened to dipped as low as ¥89.39 during the session, with markets focused on the two-day policy meeting at the Bank of Japan that earlier in the day. The move followed after the greenback on Friday topped ¥90, a level it hasn’t seen since mid-2010.
The dollar has surged against the yen since late last year amid growing expectations that the BOJ will ramp up deflation-fighting measures to boost the Japanese economy. But the monetary easing expected of the BOJ may have a positive impact beyond the country’s borders, one analyst said.
The sharp fall in the yen has helped exporters to some big gains recently, although some firms were paring recent advances on Monday. In the auto sector, Mitsubishi Motors Corp. dropped 3.2%, and Fuji Heavy Industries Ltd. fell 3.8%.
Other manufacturing stocks were also hurt, with robotics firm Fanuc Corp. down 3.9% and Mitsui Engineering & Shipbuilding Co. off 2.1%.
Among financials, Nomura Holdings Inc. lost 1.4%.
Meanwhile, Hong Kong stocks hovered around two-year highs on Monday, with diversified firm Citic Pacific Ltd., which has an exposure to iron ore mining, gaining 2%, while ports operator Cosco Pacific Ltd. rose 2.3%.
The firm’s Hong Kong-listed unit Vanke Properties Overseas Ltd., formerly known as Winsor Properties Holdings Ltd., surged 12.8% as trade resumed following a halt. Vanke Properties may be reorganized following China Vanke’s listing due to exchange rules, Reuters reported.
Hong Kong-listed telecommunications equipment maker ZTE Corp. dipped 1.4% after warning it would post a loss in 2012.
South Korean stocks haven’t done so well lately, as many of the country’s exporters compete directly, with Japanese rivals currently benefiting from a drop in the yen against a range of currencies including the Korean won.
Losing more ground on Monday were auto makers Kia Motors Corp. and Hyundai Motor Co.. Kia shares fell 1.5% and Hyundai shed 1.4%.
Trading in Australia saw some declines for healthcare stocks, with blood products group CSL Ltd. down 0.8%.
National Australia Bank Ltd. rose 1.9%, however, following a report that Spanish banking giant Santander SA may be interested in buying NAB’s U.K. branch operations.
CHINA
The Shanghai CSI 300 gained 15.46 points, or 0.6%, to 2,610.90
In Shenzhen, both the yuan-denominated A shares and the Hong Kong-dollar priced B shares of property major China Vanke Co. surged 10%. The jump came after the firm late last week said it would move its Shenzhen-listed B shares to Hong Kong.
In other markets
In Singapore, the Straits Times Index took on 10.10 points, or 0.3%, to 3,211.22
Korea’s Kospi Index lopped off 0.99 points to 1,986.86
Taiwan’s Taiex Index erased 7.95 points, or 0.1%, to 7,724.92
The NZX 50 regained 21 points, or 0.5%, to 4,185.18
Australia’s ASX Index gained 6.27 points, or 0.1%, to 4,777.50
