Major Asian markets ended mostly on a weaker note Thursday as fear of government restrictions in the property sector hurt developers in Hong Kong while lower commodity prices dragged down regional materials stocks.
In Tokyo, the Nikkei 225 subtracted 140.96 points, or 1.3%, to 10.949.09
In Hong Kong, the Hang Seng index surrendered 55.99 points, or 0.3%, to 21,454.94.
Japanese steelmakers were led lower by JFE Holdings after the company continued to refrain from making forecasts.
Hong Kong's Hang Seng Index also fell, with property counters losing ground after Financial Secretary John Tsang on Wednesday said the government may raise the transaction tax on properties valued at or below 20 million Hong Kong dollars ($2.56 million U.S.) and also announced a plan to auction two parcels of land in coming months to prevent a potential asset bubble.
Shares of Cheung Kong Holdings sank 1.4%, while New World Development Co. dropped 3.4% and Sino Land surrendered 3%.
Steelmakers paced the losses in Tokyo, with JFE Holdings sliding 1.9% after it didn't offer a profit forecast Wednesday, although its January-to-March quarterly net profit surged. Among peers, Kobe Steel shares retreated 2.7% and Nippon Steel Corp. dropped 2.3%.
Exporters also contracted on the yen's recent strength against major currencies. Sony gave up 2.1%, Sharp Corp. fell 1.6% and Honda Motor declined 1.9%.
And shares of Toyota Motor Corp. fell 1.4% after Moody's Investors Service cut the auto giant's credit rating by a notch to Aa2 from Aa1, citing "the ongoing low level of profitability ... which we expect to continue for an extended period.”
Ricoh bucked the Tokyo market, its shares rising 3.4% after the maker of copiers and digital cameras said Wednesday it now expects to report 25 billion yen ($269 million U.S.) in group net profit for the fiscal year ended in March, topping its earlier projection of 15 billion yen in profit.
In Seoul, Hynix Semiconductor rose 0.5% on news of better-than-expected first-quarter net profit of 822 billion won ($743 million U.S.), a reversal after having posted losses in the year-ago period.
Kumho Tire ended 1.1% lower in the weak market, surrendering early gains, despite news that its unions have accepted the company's restructuring measures, including a reduction in wages and bonuses.
Resource stocks were pulled down by losses in the resources sector amid weak metals prices Wednesday.
BHP Billiton lost 1.2% and Rio Tinto gave up 2.1% in Sydney, while Aluminum Corp. of China dropped 1.1% in Hong Kong and commodities trader Marubeni Corp. shed 1.7% in Tokyo.
Newcrest Mining slipped 0.3% after posting a 6% on-quarter drop in third-quarter gold production and downgrading production guidance for its Hidden Valley operation in Papua New Guinea for the second time.
Banks also fell in Sydney, with Australia & New Zealand Banking Group dropping 0.6% and Westpac Banking Corp. shedding 1.8%.
Rounding out the action in foreign exchange, the euro was fetching $1.3404 U.S. from $1.3393 U.S. late Wednesday in New York as well as and 124.72 yen from 124.82 yen. The dollar was buying 93.05 yen, compared with 93.19 yen.
CHINA
Chinese banking and property shares also came under fresh selling pressure on worries about the effect of the government's recent policy tightening.
Shanghai’s CSI 300 Index gave back 35.14 points, or 1.1%, to 3,201.54
In Shanghai, China Construction Bank shares gave up 3% and Bank of Beijing Co. tumbled 3.7%, while Beijing North Star Co. dropped 2.8% and Cinda Real Estate shed 4.4% among property names.
Elsewhere;
Korea’s Kospi index slid 8.06 points, or 0.5%, to 1,739.52
Singapore’s Straits Times Index bucked the trend and gained 13.04 points, or 0.4%, to 2,980.69
Taiwan’s Taiex index slipped 11.84 points or 0.2% to 7,978.69
New Zealand’s NZX 50 Index deducted 17.51 points, or 0.5%, to 3,287.46
Australia’s S&P/ASX 200 shaved off 46.90 points, or 1%, to 4,907.40
