Asian markets ended mostly lower in quiet trade Tuesday as investors awaited key earnings reports from the U.S, with regional chip makers dropping sharply on worries about recent declines in memory-chip prices.
In Tokyo, the Nikkei 225 Index fell 90.18 points or 0.8% to 10,764.90
Hong Kong’s Hang Seng Index enjoyed a boost of 217.97 points, or 1%, to 21,677.98.
Beaten-down banking stocks advanced to lift the Shanghai and Hong Kong markets amid mixed cues over further monetary-tightening measures by the Chinese government.
In Hong Kong, Aluminum Corp. of China, or Chalco, fell 0.2% after saying it expected to post a 2009 net loss as its first-half performance was hit by lower demand and industry overcapacity.
Shares of China Eastern Airlines advanced further, rising 5% in Shanghai and 0.7% in Hong Kong, on recent news that it expects to swing back to a profit in 2009.
In Tokyo, Japan Airlines dropped to an all-time low of three yen (3.3 U.S. cents) during the session as the airline was expected to file for bankruptcy on Tuesday, before ending unchanged at 5 yen. JAL filed for bankruptcy after the Tokyo market closed.
Chip makers, meanwhile, fell sharply across the region, on recent declines in an index measuring prices of dynamic random access memory, or DRAM prices. Shares of Nanya Technology Corp. slumped 6% and Inotera Memories sank 6.3% in Taipei, pressuring the market there.
Samsung Electronics Co. dropped 2.4% and Hynix Semiconductor lost 1.2% in Seoul and Elpida Memory skidded 4.5% in Tokyo.
Japanese exporters were also hurt as the yen strengthened, with Canon Inc. sliding 1.4% and Honda Motor Co. shedding 2.1%.
Australian banks dropped on profit-taking after strong gains Monday. Westpac Banking Corp. shed 1.2% and National Australia Bank slipped 0.2%, while Commonwealth Bank of Australia gave up 2.4%.
Computershare jumped 8.2% after the company said earnings per share for the first half of 2010 will be 20% higher than either the first and second halves of the 2009, although management also warned the second half of 2010 may not be as strong.
Orient Overseas was up 6.2% in Hong Kong on news Singapore property developer CapitaLand was looking to buy the company's China property business for $2.2 billion U.S.
CHINA
Chinese banking stocks advanced as concerns over monetary tightening eased after comments from the country's banking regulator late Monday.
The Shanghai 300 Composite Index tacked on 6.80 points, or 0.2%, to 3,507.48
The China Banking Regulatory Commission sent a mobile-phone text message to reporters saying banks will always be required to base their lending on real demand and properly manage the pace and quality of lending. The comments were taken as a response to a report, widely cited by local media, that the CBRC had set new yuan loan quotas for the country's big state-owned lenders.
The advance came although the People's Bank of China raised the yield on its benchmark one-year bills for the second straight week in its open market operation, renewing some concerns about further monetary tightening.
Bank of Communications gained 1.1% and China Minsheng Banking Corp. added 1.6% in Shanghai; in Hong Kong, banks rose sharply in late afternoon trading, with China Construction Bank Corp. surging 4.5% and China Merchants Bank Co. climbing 2.4%.
Elsewhere:
Korea’s Kospi Index was 1.56 points lower to 1,710.22
Taiwan’s Taiex index dropped 88.82 points, or 1.1%, to 8,249
Singapore’s Straits Times index added 0.90 points to 2,912.92
New Zealand’s NZX Index retreated 19.51 points, or 0.6%, to 3,227.59
Australia’s S&P/ASX 200 lost 49.90 points, or 1%, to 4,861.20
