Shares of Chinese state-owned telecommunications firms such as China Telecom Corp. got a thumping in Hong Kong Tuesday, as trading resumed a day after details of a multi-billion dollar industry revamp were announced, leading a decline in Asian stocks on Tuesday.
The blue-chip Hang Sang Index in Hong Kong dropped 1.8 per cent to 24,375.76. Tokyo's Nikkei 225 index dropped 1.6 per cent to 14,209.17.
Sony Corp. fell 2.9 per cent. Japan's top automaker, Toyota Motor Corp., declined 1.3 per cent; its rival Honda Motor Co. dropped 3.3 per cent.
Financial giant Mizuho Financial Group Inc. edged down 0.2 per cent, while Mitsubishi UFJ Financial Group fell 1.0 per cent.
Shares of three Chinese state-owned telecom firms tumbled in Hong Kong Tuesday, as trading resumed a day after the companies announced deals under a planned industry consolidation. Fixed-line operator China Telecom Corp.'s stock slumped 12.7% after it announced a 110 billion yuan ($15.9 billion) takeover of the CDMA-standard wireless business of China Unicom Group.
China Unicom, which also offers GSM-standard mobile services, said it will acquire fixed-line operator China Netcom Group Corp. in an all-stock deal valued at HK$439.17 billion ($56.3 billion). China Unicom shares fell 14.1%, while those of China Netcom lost 12.8%.
Elsewhere:
Australia's S&P/ASX 200 declined 1.6% to 5,574.20.
South Korea's key stock index fell 1.5 per cent.
Taiwan's lost almost 1.7 per cent.
Singapore's shed about 1.1 per cent.
New Zealand's slid 2.3 per cent.
In India, Mumbai's Sensex dropped 0.6 per cent to 15,962.56.
with files from other wire services
