China shares mostly recovered Thursday after a sharp selloff the previous day, but trading was choppy and investors remain focused on signs of weakness in the world’s number-two economy.
The Nikkei 225 index fell 118.41 points, or 0.6%, to 18,435.87,
In Hong Kong, the Hang Seng Index returned from holiday to dump 143.85 points, or 0.6%, to 22,845.37
Investors also are looking ahead to an European Central Bank meeting later Thursday to see whether the bank will expand its €60 billion ($68 billion) a month bond-buying program, known as quantitative easing.
The U.S. dollar was down 0.2% in Asia trade at ¥119.69 Japanese yen.
In Australia, the local dollar was down 0.2% at 71.96 U.S. cents after Commonwealth Bank of Australia Ltd. said it would lift mortgage rates. Analysts say the move could prompt the central bank to cut interest rates, which would further pressure the currency. The Australian dollar fell sharply, to as weak as 71.80 U.S. cents from a high of 72.38 U.S. cents earlier in the session.
Earlier this year, Australian regulators tightened banks’ capital requirements to ensure lenders can better resist future crises. CBA, the country’s largest provider of home loans, now joins Westpac Banking Corp. in passing some of that cost on to customers. Shares of CBA were up 0.8%.
Australian oil-and-gas producer Santos Ltd. jumped 16% after it said it had rebuffed a 7.14 billion Australian dollar ($5.15 billion U.S. ) takeover offer from a private-equity firm backed by sovereign investors and wealthy members of Asian and Gulf-based ruling families.
Santos shares have fallen sharply over the past year amid investor concerns that it may be forced into a discounted equity raising to cut its debt burden. The shares are off 24% year to date.
CHINA
The CSI 300 in Shanghai recovered 51.28 points, or 1.5%, to 3,524.53
Trading for A shares, or yuan-denominated domestic shares, on the Shanghai and Shenzhen exchanges totaled 892 billion yuan ($140.5 billion U.S.), compared with 1.17 trillion yuan Wednesday.
Smaller stocks in China rebounded Thursday, with a gauge of startup shares in Shenzhen, the ChiNext Price Index jumping 4.8%, after dropping 3% the previous day. The index is one of the most volatile share benchmarks in China.
Meanwhile, a gauge of Shanghai’s largest 50 stocks fell 0.4%, with state-owned energy firm PetroChina Co. Ltd. off 1.1%.
The central bank’s moves to add liquidity to the market, announced after the market closed Wednesday, has helped restore some confidence, analysts said. The People’s Bank of China said it injected 105.5 billion yuan ($16.6 billion U.S.) to 11 financial institutions via medium-term lending facilities — part of its goal to boost liquidity in the banking system and encourage lending to small businesses and the agricultural sector.
But earlier this week, state-owned Chinese steel trader Sinosteel Co. postponed interest payments due earlier in the week on two billion yuan ($315 million U.S.) of onshore bonds, the latest sign that Chinese companies are struggling from heavy debt loads.
China’s economic backdrop remains a concern for investors. While the country grew at its slowest pace during the third quarter since 2009, authorities still haven’t given clear signs on whether they will introduce further stimulus. Policy makers meet in Beijing later this month for an annual economic planning meeting.
In other markets
The Kospi index in Korea skidded 19.98 points, or 1%, to 2,023
Taiwan’s Taiex index lost 0.77 points to 8,608.46
In Singapore, the Straits Times Index gained 12.41 points, or 0.4%, to 3,038.11
The NZX 50 moved higher 5.34 points, or 0.1%, to 5,923/61
The ASX 200 Index picked up 15.54 points, or 0.2%, to 5,263.84
