Asian shares broadly declined Tuesday, with the poor health of the global financial system pressuring regional banks and price declines in crude oil and gold weighing down resource stocks.
But the declines weren't as big as those on Wall Street overnight as some investors focused on hopes of further economic stimulus steps from China and anticipation that Japan will employ public funds to support its stock market. The fact that regional markets had already fallen sharply on Monday also helped pare early losses.
Japan's Nikkei 225 Average ended down 50.43 points, or 0.7%, at 7,229.72, holding above the psychologically-important 7,000-point mark.
Recovery on the mainland lifted the Hang Seng China Enterprises Index 0.5% in Hong Kong, but the benchmark Hang Seng Index lost 283.58 points, or 2.3% to 12,033.88, dragged down by HSBC Holdings a day after the bank reported a 70% drop in profit and said it will raise $17.7 billion U.S. by selling shares to existing shareholders.
HSBC plunged 18.8%, while its Hong Kong-based subsidiary Hang Seng Bank lost 3.5%, after disappointing with its earnings report Monday. Standard Chartered Bank fell 5.2% before it reported 2008 results.
Financials also lost ground in Tokyo, with Mizuho Financial Group losing 2.8% and Shinsei Bank shedding 3.5%.
There was some interest in recently beaten-down stocks in Australia, with Macquarie Group surging 10.5%, logistics firm Brambles jumping 6.8% and QBE Insurance Group rising 3.8%.
Resource stocks were mostly lower, with BHP Billiton losing 2.4%, Cnooc shedding 2.1% and Inpex Corp falling 5.8% among energy producers. Among gold miners, Zijin Mining Group Co. slipped 2.4%, while Lihir fell 5.7%.
In Seoul, auto stocks outperformed on relatively better export figures for February than their global peers, with Hyundai Motor ending up 4.4% and Kia Motors adding 2.5%.
In New Zealand there was little respite, with Pike River Coal plunging 10% on news it would raise NZ$45 million ($22 million U.S.) through an issue of shares and an accompanying bonus option to provide funds, following a halt in coal production due to damage to a part of its mine.
CHINA
Shanghai Pudong Development Bank lost 3.9% and Ping An Insurance (Group) Co. of China fell 3.6% in Shanghai, while coal producer Hebei Jinniu Energy Resources lost 4.9% in Shenzhen.
Elsewhere:
China’s Shanghai Composite Index gave back 22.51 points, or 1.0%, to 2,142.15
Singapore’s Straits Times Index was off 4.89, or 0.3%, to 1,528.51
Taiwan’s Taiex gained 9.51 or 0.2% to 4,435.34
South Korea’s Kospi picked up 6.76 points or 0.7% to 1,025.57
New Zealand’s NZX 50 Index fell 63.57 or 2.6% to 2,417.95
Australia’s S&P/ASX 200 Index dipped 30.90 points or 1.0% to 3,219.20
