Most Asian stock markets ended lower Wednesday, with liquidity concerns weighing on Chinese equities while resource shares got a boost as the falling U.S. dollar buttressed commodity prices.
Shanghai’s 300 Composite Index stumbled another 70.96 points, or 2.3%, to 3,060.07, on worries that a likely surge in new-share issues and prospects for lower bank lending in the remainder of the year will crimp liquidity.
Still, some analysts said they were confident that the government would step in to support the market if any correction went too far. Peter Lai, director at DBS Vickers, said that although Beijing wants to avoid asset bubbles, it doesn't want to "kill the market."
In Hong Kong, the Hang Seng index gave back 105.62 points, or 0.5%, of yesterday’s gain to 21,595.52.
Japanese markets had the day off for Autumnal Equinox Day.
In Australia, stocks snapped a three-session losing streak and raced to their best finish in nearly a year on a strong rebound in banking and mining shares.
Shares of Woodside Petroleum surged 5.1%, while mining giants Rio Tinto and BHP Billiton rose by 2.3% and 0.9%, respectively. The two miners have also been benefiting from target-price and profit-forecast upgrades from Citigroup, which raised its coking coal price forecast for next year to $200 U.S. per metric ton from a prior projection of $140 per ton.
Elsewhere, shares of Aluminum Corp. of China rose 0.5%, Sino Gold Mining added 0.3% and PetroChina Co. added 0.1% in Hong Kong. Korea Zinc finished up 1.1% in afternoon trading.
In Hong Kong, debutante Sinopharm Group opened up 21% at HK$19.40 compared with the shares' HK$16 initial public offering price. Sinopharm finished the day at HK$18.52 in heavy trading.
Also making big gains, shares of Geely Automobile Holdings jumped 19% in Hong Kong as trading resumed following news a Goldman Sachs affiliate would take a stake in the company via convertible bonds and warrants.
Several regional financial stocks also made gains.
Shares of Commonwealth Bank of Australia added 2.3% and National Australia Bank rose 2.7%, in line with Sydney's rally.
Also higher, Standard Chartered gained 1.2% in Hong Kong, Shinhan Financial added 0.3% in Seoul.
In New Zealand, blue-chip stocks rose after data on gross domestic product showed the economy grew 0.1% in the three months ended June 30, ending a five-quarter string of contraction.
Fletcher Building gained 1.6% and Fisher & Paykel Healthcare Corp. was up 1%.
The New Zealand dollar, which had already gained nearly two U.S. cents against the greenback in the last 24 hours, surged even higher, to $0.7255 U.S. from $0.7194 U.S., before the GDP data, which also fueled speculation that the Reserve Bank of New Zealand could hike interest rates.
In Seoul, conglomerate Hyosung Corp. plunged by its daily limit of about 15%, under pressure as a result of the bid it submitted to buy a major stake in chip maker Hynix Semiconductor, shares of which fell 5.4%.
Elsewhere:
South Korea’s Kospi index slid 7.41 points, or 0.4%, to 1,711.47.
Taiwan’s Taiex fell 92.27 points, or 1.2%, to 7,469.03
Singapore’s Straits Times index inched back 0.31 points to 2,685.94
New Zealand’s NZX 50 Index grew a slight 5.04 points, or 0.2%, to 3,147.91
Australia’s S&P/ASX 200 regained 70.40 points, or 1.5%, to 4,734.10
