Asian markets ended mostly lower Wednesday, renouncing some of their recent gains, as Hong Kong stocks were battered on worries about a global economic slowdown, while a weak earnings report from Larsen & Toubro dragged down Mumbai shares.
The benchmark Nikkei 225 index closed up 99.9 points, or 1.1%, at 9,547.5 while the benchmark Hang Seng index closed down 834.58 points or 4.96% at 15,998.3.
On the economic front, Japan announced August figures for trade balance and current account. The current account balance for Japan remained in surplus for August, but the size of the surplus fell by 52.5% from a year ago. The Ministry of Finance said that the surplus was 988.8 billion yen in non-seasonally adjusted terms, marking the sixth consecutive month for shrinking current surpluses. The balance of trade in goods and services posted a deficit of 327.6 billion yen, while the merchandise trade showed a deficit of 236.0 billion yen.
Additionally, a final report from the Ministry of Economy, Trade and Industry showed that Japan's industrial production fell 3.5% in August from the prior month. The Ministry confirmed the initial estimate.
Takeda Pharmaceuticals jumped 6.2% and Astellas Pharma climbed 3.6%. Retailers were mostly higher, with Fast Retailing jumping 4.0%, Seven & I Holdings advancing 3.7% and Aeon surging 10.6%.
In the banking pace, Mitsubishi UFJ rose 1.4% and Mizuho Financial jumped 3.4%, while Sumitomo Mitsui lost 3.6%. Top brokerage Nomura Holdings dropped 0.8%.
Among exporters, Toyota Motor fell 1.9%, Honda Motor plunged 5.2%, and Mazda Motor slumped 9.2%. Mazda has put on hold its plans to build a second factory in the U.S. due to a sharp decline in new-vehicle sales in the U.S. and troubles at partner Ford Motor, the Nikkei business daily reported. Meanwhile, electronics giant Sony plummeted 4.3%, heavy machinery maker Komatsu tumbled 3.0% and Canon slumped 4.7%.
CHINA
The Chinese stock market closed lower, extending losses for a second consecutive trading session. Worries about corporate earnings, due to slowing economic growth, dented investor sentiment. Resources stocks suffered the most on concerns about declining demand for raw materials, while property developers gained on signs of support for the sector from the government. The Shanghai Composite Index closed down 22.65 points or 1.12% at 1,994.67. The index has lost over 67% from the high of 6,092.06 points it posted on October 16, 2007.
On the economic front, CHINA'S money supply growth slowed in September for the fourth month, the central bank said Tuesday. M2, the broadest measure of money supply, rose 15.3% to 45.3 trillion yuan from a year earlier, according to the People's Bank of China. M2 gained 16% in August.
China Petroleum & Chemical or Sinopec plunged 6.5%, but index heavyweight PetroChina advanced 0.6%. Jiangxi Copper shed 5.9% and Aluminum Corp of China fell 3.0%. In the energy sector, China Shenhua Energy lost 3.2% and Yanzhou Coal Mining dropped 3.8%.
Property developers rose after Shanghai's public housing fund management agency announced Tuesday that it has raised its ceiling on mortgage lending to households by 20% to encourage families to buy homes. China Vanke gained 3.4% and COFCO Property surged 9.8%.
Maanshan Iron & Steel jumped 4.3% after the company projected a 56.46% increase in the third-quarter net profit.
Banks edged higher, with China CITIC Bank rising 2.7% after its board board approved the stake increase of Spanish bank Banco Bilbao Vizcaya Argentaria to 10.07% from 4.83% and Bank of Beijing gaining 4.0%.
Among brokerages, CITIC Securities fell 2.9% and Northeast Securities lost 2.6% after the company said that it expects net profit for the first nine months of 2008 to decline 65% to 70% on year.
Elsewhere:
South Korea's Kospi dropped 2% to 1,340.28.
Taiwan's Taiex closed down 0.9% at 5,246.
Malaysia's KLCI closed down 1.7% at 949.
Singapore's STI closed down 3.2% at 2,059.
Indonesia's Jakarta Composite Index closed down 2.3% at 1,520.
India's Sensex finished down 5.9% at 10,809.
Australia's S&P/ASX 200 lost 0.8% to 4,300.
New Zealand's NZX 50 index gave up 1.5% to 2,904.64.
with files from other wire services
