Asian markets ended mostly lower Thursday in a volatile trading session amid concerns about the global economy, with Chinese stocks in Shanghai slumping on a rush of late selling as investors sold down banks after recent gains.
The performance dragged down Hong Kong stocks, in spite of sharp gains in market heavyweights HSBC Holdings and Hang Seng Bank.
In Tokyo trading, the benchmark Nikkei 225 Average lost 3.29 points or 0.04%, to close at 7,457.93, after moving on either side of break-even, with investors awaiting General Motors' earnings later in the day.
In Hong Kong, the Hang Seng Index dove 110.14 points, or 0.9%, to 12,894.94. HSBC gained 4.3% after a string of lower finishes recently, with a Daiwa Research note saying analysts are expecting the bank's 2008 profit to fall anywhere in a wide range between $10.9 billion and $18.4 billion U.S.
Hang Seng Bank shares added 1.1%, with UBS upgrading the stock to a buy from neutral after a steep price decline in recent weeks.
In Korea, Kia Motors slumping 9.3% on concerns the automaker was considering raising funds by issuing convertible securities.
LG Display Co. shares tumbled 8.2% on market and media speculation that Royal Philips Electronics was considering reducing its stake in the company.
Singapore outperformed some other markets in the region, after official data showed the city-state's gross domestic product plunged an annualized 16.4% in the fourth quarter from the third quarter, less than the government's estimate.
In other corporate news, Australia's largest telecommunications group Telstra Corp. beat forecasts on its first-half net profit, but cut guidance for the full year. The stock ended down 2.4%.
Australia & New Zealand Banking Group gained 4.4% in a choppy market after Australia's fourth-largest bank said it will probably cut its dividend by 25%.
In New Zealand, PGG Wrightson jumped 9.7% after saying it has an agreement with banks to refinance existing loans, while Nuplex Industries tumbled 9.6% after its poor first-half result.
CHINA
China’s Shanghai Composite Index slid 114.07 points, or 5% to settle at 2,190.18, reversing early gains, with China Merchants Bank Co. dropping 4.4% as investors locked in profits after the stock climbed 8.1% Wednesday.
Insurers also declined after Morgan Stanley slashed their earnings estimates citing pressure on fixed-income returns, with China Life Insurance Co. losing 4.4% and Ping An Insurance shedding 3.2%.
Elsewhere:
Singapore’s Straits Times Index nosed up 0.65 points, or 0.04%, to 1,617.44
Taiwan’s Taiex Index gained 24.82 points or 0.6%, to 4,518.56
South Korea’s Kospi tailed off 12.29 points or 1.2% to 1,054.79
New Zealand’s NZX 50 Index fell 2.39 or 0.1%, to 2,497.43
Australia’s S&P/ASX 200 Index gained back 18 points or 0.5% to 3,345.50
