The yen and the U.S. dollar weakened against the currencies of Australia and New Zealand after faster Australian job growth and prospects for higher rates prompted investors to seek higher-yielding assets. As a result, Asian stocks fell.
In Tokyo, the Nikkei 225 Index surrendered 141.90 points, or 1.4%, to close back below the psychologically important 10,000 barrier at 9,862.82
In Hong Kong, the Hang Seng Index lost 41.72 points, or 0.2%, to 21,700.04.
Mazda, Japan’s fourth-largest automaker, slid 3.5%, while Honda Motor Co., which gets 42% of its sales in North America, lost 1.5%. Suzuki Motor Corp. dropped 5.5% even after Volkswagen AG said it will buy a 19.9% stake in the Japanese automaker.
Geely Automobile Holdings Ltd. tumbled 5.9% in Hong Kong. BYD Co., the maker of batteries and cars in which Warren Buffett has a stake, lost 3.2%. They are among Chinese automakers that will suffer from a higher sales tax on smaller vehicles, CLSA Asia-Pacific Markets said.
Australian companies added six times as many jobs as economists estimated last month. New Zealand’s central bank Governor Alan Bollard said he expects to raise interest rates in the middle of next year as the housing market surges.
Most Asian stocks declined on speculation further gains in the yen will hurt export earnings and as $5.5 billion U.S. of bonds issued by Dubai-backed companies comes due in four days.
The number of Australians employed gained 31,200 in November, the statistics bureau said in Sydney today, while the median estimate from economists was for an increase of 5,000. New Zealand central banker Bollard said he expects to raise rates around the middle of 2010, as the nation’s economy will expand faster in the first quarter than previously estimated.
In Taipei, Motech tumbled 6.9%. The company agreed to sell a 20% stake to Taiwan Semiconductor at a 16.9% discount. Taiwan Semiconductor dropped 1.8%.
CHINA
China’s Shanghai 300 Composite Index was little changed as investors weighed the impact of policies announced by the State Council yesterday. Hisense Electric Co., which makes flat-panel televisions, climbed 7.7% in Shanghai after the government said it will continue appliance trade-in subsidies beyond May 2010, when it had been set to expire.
The Shanghai 300 Composite Index gained back 22.76 points, or 0.6%, to 3,577.24
China will charge a 7.5% sales tax on vehicles with engines of 1.6 litres or less through the end of 2010, according to a statement posted on the State Council’s Web site yesterday. The government had halved the tax to 5% this year. The lower 5% tax is due to expire at the end of 2009.
While extending favourable policies for consumption, China’s government will impose a sales tax on homes sold within five years of their purchase, increasing the time period covered by the charge from two years, according to the State Council.
China Vanke retreated 1.3%, and Shanghai Industrial Development Co. lost 1.8%. Gemdale Corp. fell 1.4%.
Hisense jumped 7.7%. Hefei Rongshida Sanyo Electric Co., which makes washing machines, added 3.9%. The government will extend subsidies for purchases of appliances, automobiles and farming equipment in rural areas, the State Council said.
Elsewhere;
Taiwan’s Taiex index slid 119.51 points, or 1.5%, to 7,677.91
Singapore’s Straits Times index backpedaled 15.35 points, or 0.6%, to 2,781.56
Korea’s Kospi index gained 18.56 points, or 1.1%, to 1,652.73
New Zealand’s NZX Index finished 4.64 points, or 0.2%, higher to 3,132.28
Australia’s S&P/ASX 200 fell 31.20 points, or 0.7%, to 4,606.70
