Shanghai shares sold off sharply and Australian markets fell Tuesday, amid a renewed slide in oil prices and profit-taking in China, where domestic investors cashed in during an especially volatile day of trading.
In Japan, the Nikkei 225 toppled 122.26 points, or 0.7%, to 17,813.38,
In Hong Kong, the Hang Seng index plummeted 561.84 points, or 2.3%, to 23,485.83.
Japan’s market continues to face headwinds after revised data Monday showed the economy contracted more than the government estimated in the third quarter, which confirmed that the country was in a recession.
In Australia, energy and mining stocks led the S&P ASX 200 lower. The energy sub-index lost 4.8%, while the mining sector shed 3.1%.
Investors in Australia were also selling after a monthly survey by National Australia Bank showed Australian consumer and business confidence levels falling sharply in November. The data reflected growing uncertainty about the economic outlook, and the survey raises the likelihood of an interest-rate cut early next year.
The Australian dollar also was under pressure, falling to a fresh four-and-a-half-year low against the U.S. dollar. It traded as low as $0.82 intraday in Asia.
Oil producer Santos Ltd. tumbled 7.2%, following a downgrade by Standard & Poor’s from BBB from BBB+. The company in response said its financial position was unaffected by the rating change.
CHINA
Shanghai’s CSI 300 index shed 145.97 points, or 4.5%, to 3,106.91. The loss was the biggest daily percentage drop in more than five years.
Analysts attributed the decline to profit-taking after a rise of 23% in the previous 13 sessions.
Some of the weakness also appeared to stem from a new rule by China’s securities clearing house late Monday that tightened the use of corporate bonds as collateral for short-term financing. The rule is an attempt to rein in risky debt issuances from struggling companies and local governments.
In other markets;
Singapore’s Straits Times Index improved 22 points, or 0.7%, to 3,319.84
The Taiex index in Taiwan lopped off 58.39 points, or 0.6%, to 9,128.90
Korea’s Kospi index loosed eight points, or 0.4%, to 1,970.05
New Zealand’s Exchange 50 gained 13.61 points, or 0.3%, to 5,542.93
Australia’s S&P/ASX 200 moved lower 90.04 points, or 1.7%, to 5,282.67
