Asian markets ended mixed Tuesday, with some regional indexes paring steep early losses amid hopes that U.S. lawmakers would reconsider a $700 billion financial-sector bailout they rejected overnight, while Hong Kong and Mumbai stocks staged a recovery in afternoon trading.
The benchmark Nikkei 225 Index closed down 483.75 points or 4.1% at 11,259.86 while the benchmark Hang Seng index closed up 135.53 points or 0.76% at 18,016.21.
A slew of economic data was released today. The Ministry of Internal Affairs and Communications said that the seasonally adjusted rate of jobless people in Japan was 4.2% in August, higher than the analysts' expectation of 4.1%, and also came in higher than the 4.0% reported in July.
The Ministry of Economy, Trade and Industry reported that industrial output in Japan was down 3.4% in August compared to that for the previous month, representing the first decline in two months. That was sharply lower than the analysts' expectation that called for a 2.4% decline.
An index that measures Japanese manufacturing activity came in at a six-year low, according to the Nomura/JMMA Japan Purchasing Managers Index, standing at a seasonally adjusted 44.3 in September, lower than the August figure of 46.9.
Japan's housing starts picked up in August, exceeding economists' expectation, a report by the Ministry of Land, Infrastructure and Transport said Tuesday. Housing starts surged 53.6% year-over-year in August, marking a faster rate than the 19% recorded in July, and above the 49.8% expected by analysts.
Average Japanese monthly household spending in August fell a real 4.0% from a year earlier to 291,154 yen, the government said Tuesday.
Bank stocks were among the biggest losers in Tuesday's session, hurt by the increasing global financial sector jitters and grim news out of Europe on Monday. Mitsubishi UFJ Financial Group fell 4.7% and Mizuho Financial Group dropped 4.1%. Top brokerage Nomura Holdings tumbled 7.3%.
U.S.-based Morgan Stanley said on Monday that it agreed to sell a 21% stake to Mitsubishi UFJ for $9 billion in an attempt to bolster its finances.
Among exporters, Toyota Motor dropped 4.6%, Sony plunged 6.5%, Canon plummeted 6.1%, and Honda Motor dropped 3.7%.
Japan Airlines lost 3.1% after the airline said Monday that three unions representing its cabin crew were planning to hold a one-day strike on Wednesday.
In the tech sector, Advantest fell 4.2%, Fanuc lost 3.6%, Kyocera dropped 4.5% and Matsushita Electrical Industrial shed 5.5%.
Among oil-related stocks, Inpex Holdings declined 2.2%, Nippon Mining Holding plunged 7.9% and Nippon Oil gave away 4.0%. Mitsui & Co slid 2.0% and Mitsubishi Corp slumped 7.1%.
Elsewhere:
Taiwan's Taiex closed down 3.6% at 5,719.
Singapore's STI closed flat at 2,358.
Malaysia's KLCI closed flat at at 1,018.
South Korea's Kospi slipped 0.6%.
New Zealand's NZX 50 index gave up 3.1%.
Australia's S&P/ASX 200 index shed 4.3%.
with files from other wire services
