Most Asian markets declined Tuesday, with Hong Kong and mainland Chinese shares sliding as the fear of monetary tightening by Beijing resurfaced after economic data revealed consumer and property prices continued to rise on the mainland.
Tokyo’s Nikkei 225 backslid 119.60 points -- or 1.1% -- to 10,411.10
In Hong Kong, the Hang Seng index dumped 280.13 points, or 1.4%, to 20,146.51
Several markets opened higher following a hefty increase overnight on Wall Street, but their advance was tempered by concerns over the implementation of the European Union's bailout package.
Woori Finance shed 1.2% and Hynix Semiconductor gave up 1.1% in Seoul.
In Sydney, the lack of a positive surprise from the Chinese data combined with lingering worries over the government's proposed 'super tax' on the resources sector dragged down mining stocks.
Among key resources stocks, BHP Billiton slid 2.2% and Rio Tinto fell 2.5%, while Fortescue Metals Group sank 5%.
Banking shares slumped in Tokyo amid concerns over capital-raising. Sumitomo Mitsui Financial Group dropped 3.6% after the Asahi Shimbun reported the lender planned to increase the ceiling for the number of shares it can issue. Mizuho Financial Group tumbled 4.7% following media reports it was considering to raise up to one trillion yen ($10.8 billion U.S.) in capital.
Exporters also declined as the Japanese yen reversed Monday's sharp fall against major currencies. Toyota Motor dropped 0.7% and Canon gave up 1.3%.
Sony Corp. advanced 0.3% following its announcement Monday that it will report an operating profit for the year ended March 31, after previously forecasting a loss, helped by cost cuts, milder-than-expected price falls and improved conditions at its main electronics division.
Sumitomo Heavy Industries advanced 3.9% after the machinery maker said it expected net profit for the current fiscal year ending March 2011 to rise 24%.
In Seoul, Hanjin Shipping added 1.1% after its fall of more than 6% Monday, despite the company's plans to issue new common shares worth 252 billion won ($222 million U.S.)
In foreign exchange markets, the euro continued to pull back from Monday's session high against the U.S. dollar at $1.3095 as enthusiasm for the rescue package ebbed and traders started to focus on the viability and implementation of the plan. The euro was at $1.2693 U.S., from $1.2775 U.S. late in New York Monday, and was buying 117.36 yen from 119.00 yen. The dollar was fetching 92.42 yen compared with 93.15 yen.
CHINA
Shanghai’s CSI 300 unloaded 57.42 points, or 2%, to 2,800.82
The decline came after economic data released earlier in the day showed Chinese consumer and producer prices increased at a faster-than-expected pace in April, while mainland lenders made local currency loans worth 774 billion yuan ($113.5 billion U.S.) in April, up sharply from the 510.7 billion yuan they disbursed in the previous month.
Data released separately also showed Chinese property prices rose 12.8% in April from a year earlier, accelerating further despite recent tightening measures by authorities. The data served to raise fears of fresh tightening by Beijing, including lending rate increases.
Gemdale Corp. slid 2.6% and Cinda Real Estate Co. fell 3.6% among property shares traded in Shanghai, while SAIC Motor Corp. dropped 2.7% and Bank of China lost 1.7%.
Concerns over possible policy tightening from China also weighed shares traded elsewhere, with China Construction Bank falling 1.6% and China Resources Land dropping 2.3% in Hong Kong
Elsewhere;
Singapore’s Straits Times Index moved lower by 22.81 points, or 0.8%, to 2,857.67
Korea’s Kospi index declined 7.39 points, or 0.4%, to 1,670.24
Taiwan’s Taiex index lost 56.29 points, or 0.7%, to 7,608.44
New Zealand’s NZX 50 Index stumbled 3.60 points, or 0.1%, to 3,167.02
Australia’s S&P/ASX 200 jettisoned 51.80 points, or 1.1%, to 4,548
