Stocks in Shanghai and Hong Kong led Asia's losses Wednesday, with Chinese banks falling on concerns about liberalization's impact on their bottom lines, while a stronger yen weighed on Japanese stocks.
In Tokyo, the Nikkei 225 index dropped 96.25 points, or 0.6%, to 15,515.06
Hong Kong’s Hang Seng Index plummeted 405.95 points, or 1.7%, to 23,338.24
In Hong Kong, Agricultural Bank of China and China Construction Bank fell 2% and 2.4%, respectively, while HSBC Holdings PLC, the single-largest constituent on the Hang Seng Index, fell 1.3% after it said it had agreed to sell its 8% stake in Bank of Shanghai to
Spain's Banco Santander SA. HSBC didn't say how much it was selling the stake for, but it valued the holding at $468 million U.S. on Sept. 30.
Meanwhile, caution could be seen in the dollar’s movement against the yen, which pulled back overnight, after spending much of Tuesday with striking distance of challenging its year high. The dollar lost a total of 0.4% against its Japanese counterpart overnight and was last trading at ¥102.73, compared with ¥102.84 late Tuesday in New York.
The yen’s push back against the dollar weighed on Japanese stocks.
Australian markets, meanwhile, hit a three-and-a-half month low, as investors continued to worry about the impact of a flurry of initial public offerings hitting the market before the end of the year.
Shares in QBE Insurance Group gained 1.8% after J.P. Morgan upgraded the company to neutral after falling a total of 32% on Monday and Tuesday. The insurer’s surprise profit warning earlier this week had hit broader sentiment in Sydney.
CHINA
Markets in Shanghai fell after news that China's four state-owned banks and a former state policy bank will issue a total of 19 billion yuan ($3.1 billion U.S.) of negotiable certificates of deposit, the latest step in China's move toward less-restricted interest rates.
Liberalization has prompted concerns that the banks will face short-term pressure on their profits.
Unlike ordinary bank deposits, the interest rate on the new certificates requires the banks to negotiate the cost of capital between themselves.
Shanghai’s CSI 300 index docked 40.56 points, or 1.7%, to 2,412.76
In other markets;
Korea’s Kospi Index eased 15.48 points, or 0.8%, to 1,977.97
Taiwan’s Taiex Index lost 9.62 points, or 0.1%, to 8,433.77
The Singapore Straits Times Index moved lower 20.98 points, or 0.7%, to 3,060.74
In New Zealand, the NZX 50 slid 2.20 points, or 0.1%, to 4,704.31
In Australia, the S&P/ASX 200 doffed 39.30 points, or 0.8%, to 5,104.25
