Most Asian markets declined Monday after a surprise rate increase in India on Friday raised fears that monetary tightening by other regional central banks may be close at hand.
The Hang Seng Index in Hong Kong plunged 437.57 points, or 2.1%, to 21,933.25.
Analysts had widely expected the Reserve Bank of India to raise rates at its quarterly meeting in April, and the timing of its 0.25-percentage-point rise for its key lending and borrowing rates, between policy meetings, caught markets by surprise.
Concerns about further monetary tightening from China weighed heavily on property shares traded in Hong Kong. Hang Lung Properties fell 4.6% and Henderson Land Development Co. fell 2.9%, while China Overseas Land & Investment skidded 3.8%.
Australian shares tracked losses on Wall Street, with the heavyweight financial, materials and energy shares dominating broad-based declines.
BHP Billiton declined 1.4% and Commonwealth Bank of Australia gave up 0.8%.
Arrow Energy fell 3.6% to 5.10 Australian dollars ($4.64 U.S). It agreed to sell a bulk of its Australian assets to Royal Dutch Shell and PetroChina Co., after the buyers increased their bid to A$4.70 per share from A$4.45.
In foreign-exchange markets, the euro was still weighed by concerns about Greece's fiscal problems, although trade was quiet with Japanese traders on holiday. The common currency was at $1.3515 U.S. versus $1.3535 U.S. in late New York trade Friday, and at 122.41 yen against 122.47 yen. The dollar was buying 90.56 yen compared with 90.50 yen.
Even if Greece's troubles were stitched up soon, it wouldn't likely be the end of bad news from the region, according to some experts, who added that European officials were likely supportive of a weaker euro and wouldn't do too much to jawbone against it.
Spot gold was at $1,107.30 U.S. a troy ounce, down 60 cents U.S. from New York close. Trade in gold was rangebound after the metal dropped sharply Friday on the RBI's rate-rise news.
Markets in Tokyo had the day off for the Vernal Equinox.
CHINA
Shanghai’s CSI 300 Index gained 8.76 points, or 0.3%, to end the week’s first session at 3,302.63.
Air China inched up 0.1% after the airline said it plans to inject a total of 1.03 billion yuan ($150.9 million U.S.), together with Total Logistics (Shenzhen) Co., into Shenzhen Airlines.
Under an agreement reached Sunday, Air China will invest 682.14 million yuan in Shenzhen Airlines, more than doubling its stake in the regional Chinese carrier to 51% from 25%.
Property developers in China declined on concern that the central government's pledge to limit state-owned companies' participation in property development may lower real-estate prices. China Vanke shed 1% in Shenzhen and Gemdale Corp. slipped 0.2% in Shanghai.
Elsewhere;
Korea’s Kospi index skidded 13.44 points, or 0.8%, to 1,672.67
Singapore’s Straits Times Index fell back 26.52 points, or 0.9%, to 2,889.18
Taiwan’s Taiex Index faded 61.93 points, or 0.8%, to 7,835.98
New Zealand’s NZX Index gained 2.90 points, or 0.1%, to 3,233.30
Australia’s S&P/ASX 200 gave back 42 points, or 0.9%, to 4,830.20
