Most Asian stock markets lost ground on Wednesday, with the Nikkei selling off on the back of another yen spike amid disappointment with the country's latest stimulus plan.
The Nikkei 225 plummeted 308.34 points, or 1.9%, to 16,083.11
In Hong Kong, the Hang Seng Index resumed business after Tuesday’s typhoon warning, and slumped 390.02, or 1.8%, to 21,739.12
In Japan, the government approved on Tuesday 13.5 trillion yen ($132.04 billion U.S.) in fiscal measures, with 7.5 trillion yen in spending by the national and local governments as part of Prime Minister Shinzo Abe's 28-trillion-yen fiscal stimulus package, announced last week in a bid to boost the country's moribund economy. Still, the package disappointed some investors.
The yen spiked on Tuesday after the stimulus announcement. On Wednesday, the Japanese yen strengthened against the U.S. dollar, trading as high as 100.72 before retreating slightly to 101.23 late in the afternoon, compared with levels between 104 and 106 in the previous week.
Export stocks in Japan were under pressure, likely weighed by the stronger yen, which hurts overseas profits when they are translated back into the home currency. Shares of Toyota closed down 1.9%, Nissan lost 3% and Sony was down 1.7%
Shares of Honda, however, beat the broader index to close up 3.8%, as investors reacted to its fiscal first-quarter earnings released on Tuesday after market close.
Honda's operating profit for the quarter was up 11.5% at 266.8 billion yen, compared with 239.2 billion yen registered in the same period a year earlier. The Japanese automaker said its operating profit increased due to cost reduction efforts and higher revenue associated with sales volume and model mix.
In company news, Samsung Electronics on Tuesday unveiled the large-screen Galaxy Note 7 "phablet" with a stylus pen in a bid to capture the premium end of a slowing smartphone market. However, Samsung shares remained subdued, closing down 2%.
Elsewhere, HSBC, one of Britain's largest lenders, reported its earnings for the first half of 2016. Profit before tax fell 28.7% on-year to $9.71 billion U.S. in the first half of 2016 from $13.62 billion in the same period last year. Adjusted revenue was down 4% on year to $27.86 billion U.S.
The bank announced it would also conduct a share buyback of up to $2.5 billion U.S. in the second half of 2016 and said it would sustain annual dividend at current levels for now.
Hong Kong-listed shares of HSBC traded up 1.6% in late afternoon trade.
Major Australian miner Rio Tinto also reported half-year earnings after market close, which saw its first-half underlying earnings drop 47% from $2.92 billion U.S. in first-half 2015 to $1.56 billion in first-half 2016. The miner also declared an interim dividend of 45 U.S. cents per share for first half 2016.
Shares of Rio Tinto closed near flat
In other markets
The Shanghai CSI 300 eked up 4.46 points, or 0.1%, to 3,193.51
The Taiex Index in Taiwan slid 67.05 points, or 0.7%, to 9,001.71
In Singapore, the Straits Times Index shed 29.09 points, or 1%, to 2,827.58
In Korea, the Kospi doffed 24.24 points, or 1.2%, to 1,994.79
In New Zealand, the NZX 50 moved backward 51.8 points, or 0.7%, to 7,277.40
The ASX 200 fell 74.82 points, or 1.4%, to 5,565.72
