Most Asian markets dropped Monday after steep losses on Wall Street Friday prompted selling, though the magnitude of the fall was limited by a strong rebound for Chinese stocks and merger-and-acquisition news.
Australia's Healthscope surged after two U.S. private equity giants won a bid for the company.
Tokyo markets had the day off for Marine Day.
Hong Kong’s Hang Seng Index dropped 159.21 points, or 0.8%, to 20,090.95
Deal makers were active around the region. Australian-listed Healthscope jumped 10% to 5.94 Australian dollars ($5.22 U.S.) after U.S. private equity giants Carlyle Group and TPG won a bidding war for the company Monday, sealing the deal with a A$6.26-a-share offer that valued Healthscope at A$2.7 billion.
In South Korea, Honam Petrochemical's shares added 1.6% after the company agreed to buy a 72.6% stake in Titan Chemicals from the Malaysian petrochemical firm's major shareholders for 2.35 ringgit (73 U.S. cents) a share, valuing Titan at $1.29 billion. The offer was pitched at a 27% premium to Titan's last traded price prior to a trade halt Thursday.
On completion of the deal, Honam will be obligated under the Malaysian takeover code to make a mandatory general offer for the remaining shares in Titan.
Titan's shares soared 18.9% to 2.20 ringgit on resumption of trade Monday.
In New Zealand, NZ Farming Systems Uruguay surged 29.3% after Singapore-based Olam International bought PGG Wrightson's 11.5% stake in the company and made a full takeover offer for the remainder of the company. PGG Wrightson advanced 6.4% in Wellington, while Olam rose 1.5% in Singapore.
Australia's broader market reacted calmly to Saturday's news that Prime Minister Julia Gillard had set Aug. 21 as an election date.
Aquarius Platinum plunged 24.5% in Sydney, in line with its London listing's 15% fall Friday, after U.K. analysts last week warned of major changes to the company's prospects in the event of tougher safety standards at South African platinum mines. South African authorities Sunday ordered tighter regulations, restricting volume of rock removed from underground chambers, which Aquarius on Monday said it would appeal as unnecessary for safety and damaging economically.
In Seoul, the market was weighed by the U.S. market's decline, with KB Financial dropping 1.2% and Shinhan Financial Group losing 1.8%, while Hynix Semiconductor was up 0.9%.
In Hong Kong, Zijin Mining Group shed 3.7% after a Xinhua news agency report over the weekend cited unnamed company figures as saying a new leak was discovered at the company, with about 500 cubic meters of plant waste discharged before it was capped. The report follows last week's detention of three company executives by Chinese police after an earlier leak at its copper-processing plant contaminated a local river.
In foreign-exchange markets, the euro rose to $1.2966 U.S. from $1.2927 U.S. in late New York trade on Friday, and at 112.58 yen from 111.95 yen. The dollar was at 86.84 yen, compared with 86.61 yen.
CHINA
But Shanghai bucked the trend to jump in price, as banking, property and consumer stocks rose on hopes that Beijing may not introduce more restrictive policies after several indicators showed last week the economy was cooling.
Shanghai’s CSI 300 Index gained 66.34 points, or 02.5%, to 2,682.47
Poly Real Estate Group shares gained 2.9% and China Merchants Bank added 2.6%, with Bright Dairy & Food rising by the day's 10% limit and Tsingtao Brewery advancing 1.8%.
Elsewhere;
Singapore’s Straits Times Index slipped 12.30 points, or 0.4%, to 2,945.42
Korea’s Kospi index eased 6.50 points, or 0.4%, to 1,731.95
Taiwan’s Taiex Index fell 14.74 points, or 0.2%, to 7,649.83
New Zealand’s NZX index gave back 21.16 points, or 0.7%, to 2,964.60
Australia’s S&P/ASX 200 slid 64.40 points, or 1.5%, to 4,358.30
