China's leading share index tumbled Wednesday, staging its biggest single-day decline since June, after a senior legislator warned that the market may be overheating after a stunning 130% gain in 2006.
In Tokyo, the Nikkei 225 index shed 106.77 points, or 0.61 percent, to close at 17,383.42 while the benchmark Hang Seng Index fell 354.04 points, or 1.73 percent, to 20,106.42.
Sony shares fell 1.42 percent amid concerns about sales of the electronic giant's new games console business.
Nikko Cordial Corp., Japan's third-largest brokerage, tumbled 14.45 percent on reports of possible earnings manipulation. An internal investigation committee reported that former executives had been involved in manipulating earnings to boost profits.
Elsewhere:
BANGKOK: Thai shares edged up 0.1 percent to close at 654.04, as buying in energy stocks were offset by selling in banking stocks.
JAKARTA: Indonesia shares dropped, led by further profit-taking in nickel miner Inco (INCO.JK) and Bank Rakyat (BBRI.JK). The Jakarta Stock Exchange Composite Index slipped 0.5 percent to 1756.56.
KUALA LUMPUR: Malaysian shares rose, led by strong buying interest in construction sector, select blue chips and banking stocks, dealers said. The Kuala Lumpur Composite Index climbed 0.7 percent to 1,189.35.
MANILA: Philippine shares rose for the third straight session, lifted by investors' optimism over the country's economy despite 2006 GDP data falling short of official targets. The Philippine Stock Exchange Index gained 42.61 points, or 1.3 percent, at 3,239.27.
MUMBAI: Indian shares fell, led by a sharp decline in Tata Steel on concerns it has agreed to overpay to acquire European steelmaker Corus Group. The Bombay Stock Exchange's 30-stock Sensitive Index, or Sensex, fell 121.04 points, or 0.9 percent, to 14,090.92.
SEOUL: South Korean shares fell, led by a decline in utilities. The won rose off a three-month low. The Korea Composite Stock Price Index fell 10.49 points, or 0.8 percent, to 1,360.23.
SINGAPORE: Shares closed slightly lower, with the benchmark index locked in a tight range as markets await clues on the timing of a U.S. interest rate cut. The Straits Times index was down 4.7 points, or 0.2 percent, at 3125.56.
TAIPEI: Taiwan shares fell slightly as investors took profit on construction and electronics stocks. The Weighted Price Index of the Taiwan Stock Exchange dropped 40.27 points, or 0.5 percent, to 7,699.64.
WELLINGTON: New Zealand stocks rose as gains by leading blue chips offset a sharp fall by bellwether Telecom Corp. The NZX-50 index rose 25 points, or 0.6 percent, to 4,152.98.
SYDNEY: Australian shares were pushed down sharply, with some traders saying the market could retreat further after recent gains. The benchmark S&P/ASX 200 fell 39.1 points, or 0.7 percent to 5,773.4.
With files from wire services
