Stocks fell sharply Wednesday in several Asian markets on heightened risk aversion amid deepening concerns over Europe's fiscal health, with commodity shares and financials hurting the most.
Japanese and Korean markets had the day off
In Hong Kong, the Hang Seng index plunged 435.51 points, or 2.1%, to 20,327.54
But shares traded in mainland China ended higher as investors looked for bargains in the property and banking sectors, after the Shanghai benchmark index had plumbed levels around seven-month lows earlier in the session.
Resource stocks fell sharply across the region.
Oil Search gave up 2.6% and Newcrest Mining sank 1% in Sydney, while Aluminum Corp. of China lost 3.2% and Cnooc Ltd. slumped 4.6% in Hong Kong.
However, mining heavyweights BHP Billiton and Rio Tinto rebounded in Sydney, recouping some of their sharp recent losses. BHP shares rose 0.4% as Rio advanced 1.8%.
The financial sector also came under selling pressure, as HSBC Holdings shares dropped 1.9% and Industrial & Commercial Bank of China fell 2.3% in Hong Kong and DBS Group Holdings lost 1.2% in Singapore.
Shares of Westpac Banking also retreated, shedding 4.2% in Sydney. Although the company reported a higher-than-expected 32% year-on-year increase in net profit, its interest rate margins disappointed.
News Corp., owner of The Wall Street Journal, Dow Jones Newswires and MarketWatch, fell 4.2% in Sydney.
Late Tuesday, the media giant reporting third-quarter earnings of 32 U.S. cents a share, compared with expectations of 22 cents. Traders said investors were locking in profits on positions in News Corp. after strong gains recently.
China Overseas Land & Investment shares declined 2.3% as Evergrande Real Estate Group lost 3.3%, while Bank of Communications Co. shed 3.6% in Hong Kong.
Shipbuilders in Singapore traded sharply lower, with investors selling after China's New Century Shipbuilding called off an initial public offering in what would have been the largest offering in Singapore this year.
Shares of Cosco Corp. (Singapore) tumbled 3.6% as Jaya Holdings fell 2.7%.
In Taiwan, financials declined but still outperformed the broader market after Premier Wu Den-yih said Tuesday that the island nation hopes to sign early next month a trade agreement with China to remove bilateral tariffs. Fubon Financial lost 1.3% and Cathay Financial fell 1.4%.
In foreign-exchange markets, the euro continued to be pressured lower against the U.S. dollar on concerns that the multilateral aid package for Greece, valued at 110 billion euro ($143 billion U.S.), won't be sufficient to address the country's debt load.
The single currency was at $1.2954 U.S., down from $1.3001 U.S. in late New York trading Tuesday, and at 122.54 Japanese yen from 122.71 yen. The dollar went for 94.58 yen against 94.40 yen.
CHINA
Banking shares and the property sector drove losses in Hong Kong on lingering worries that Beijing could introduce more restrictive policies in weeks ahead, though stocks in Shanghai and Shenzhen staged a rebound after heavy losses recently.
Shanghai’s CSI 300 broke the trend and actually gained 16.94 points, or 0.6%, to 3,036.39
On mainland Chinese bourses, Bank of Communications rose 1.2%, Bank of Beijing gained 2.9%, Beijing Vantone Real Estate Co. added 2.7% and China Vanke advanced 0.5%.
Elsewhere;
Singapore’s Straits Times Index moved lower 40.87 points, or 1.4%, to 2,860.31
Taiwan’s Taiex index plummeted 233.87 points, or 3%, to 7,696.90
New Zealand’s NZX 50 Index declined 49.20 points, or 1.5%, to 3,248.82
Australia’s S&P/ASX 200 slid 63.10 points, or 1.3%, to 4,674
