Japanese stocks retreated from a three-week high on Wednesday as concerns about an imminent turn in U.S. monetary policy dented risk appetite, while Sumitomo Mitsui Financial Group outperformed after raising its earnings forecast.
In Tokyo, the Nikkei 225 index doffed 21.52 points, or 0.2%, to 14,567.16
Hong Kong’s Hang Seng Index plummeted 437.58 points, or 1.9%, to 22,463.83
SMFG outperformed, rising 1.6% and was the most traded stock by turnover after raising its net profit outlook for the year through March by 5.5% to 750 billion yen.
Shares of Pioneer Corp., however, stood out by rallying 15% after the audio-equipment maker's first-half operating profit of 569 million yen ($5.7 million U.S.) was better than anticipated. Auto stocks also traded mostly higher as the yen extended losses against the U.S. dollar, with Mazda Motor Corp. and Nissan Motor Co. up by 2.3% and 1.6%, respectively.
Hong Kong shares slumped to their biggest loss in nearly three months on Wednesday, led by sectors likely to see margins cut as a result of more competition after China's Communist Party elevated its focus on markets at a key policy meeting.
Financial issues were hit in Hong Kong, with Industrial & Commercial Bank of China Ltd. down by 2.1% and China Construction Bank Corp. off by 1.8%. Property and insurance shares were also dragged lower, including a 2.1% decline for Ping An Insurance Group Co. and a 0.8% fall for Sun Hung Kai Properties Ltd.
In other action, shares of Tencent Holdings Ltd. slid 4.1% ahead of the release of third-quarter results from the Internet company after trading closes.
CHINA
Shanghai’s CSI 300 index subtracted 51.88 points, or 2.2%, to 2,288.12
Investors were disappointed by a perceived lack of details on policies and reforms decided on at the Communist Party plenum that ended on Tuesday. The party made clear it had no plans to radically reduce the role of the state in the economy.
The communique following a secret leadership meeting listed several target areas for reform, but its language was more vague than some had expected and it explicitly underscored the importance of the state sector in the economy.
But rather than lift state firms that dominate major benchmark indexes in China and Hong Kong, it spurred worries that it would leave them exposed once the authorities made good on their pledge to give markets a "decisive" role in the economy.
In other markets;
Korea’s Kospi Index docked 31.92 points, or 1.6%, to 1,963.56
Taiwan’s Taiex Index slumped 91 points, or 1.1%, to 8,104.26
The Singapore Straits Times Index dropped 13.51 points, or 0.4%, to 3,166.74
In New Zealand, the NZX 50 inched forward 2.99 points, or 0.1%, to 4,918.66
In Australia, the S&P/ASX 200 shed 73.92 points, or 1.4%, to 5,319.18
