Chinese shares suffered their worst fall in more than a month Tuesday, dragging down markets across Asia, as weaker-than-expected imports in July fueled worries that consumption on the mainland was slowing.
Japan’s Nikkei 225 Index dropped 21.44 points, or 0.2%, to 9,551.05
Hong Kong’s Hang Seng Index removed 327.99 points, or 1.5%, to 21,473.60
Investors were also cautious ahead of the U.S. Federal Reserve's rate-setting meeting due later in the global day and sold down other risky assets, sending the U.S. dollar higher against most currencies other than the Japanese yen. The greenback's rise, in turn, weighed on commodities priced in dollars and pulled regional resource shares lower.
Among the resource sector, BHP Billiton dropped 2% and Woodside Petroleum dropped 2.3% in Sydney. PetroChina Co. and Aluminum Corp. of China lost 2.4% in Hong Kong.
Japanese stocks retreated in line with weak Chinese markets and regional peers, as investors reacted calmly to the Bank of Japan's decision to keep its overnight call rate unchanged at 0.1%, as expected.
Exporters were broadly lower, with Sony Corp. sliding 0.7% and Nissan Motor Co. dropping 0.5%.
Shares of Disco jumped 5.6% after the company posted strong first-quarter profits and raised its full-year earnings and dividend forecasts, citing a recovery in the semiconductor industry and demand for consumer electronics products. Mitsubishi Materials climbed 5.1% after a solid first-quarter earnings report.
In Hong Kong, shares of online business-to-business platform operator Alibaba.com Ltd., rose 0.3% ahead of its quarterly results announcement. After the close the company reported net profit of 363 million yuan ($53.6 million U.S.), an increase of 45% from the year earlier CNY249.2 million, helped by growth in its registered user base and income from new services.
In foreign-exchange markets, the yen rose against the euro and the dollar after the Bank of Japan kept its policy rate steady and as investors awaited the outcome of the Fed meeting. The euro was fetching ¥112.99 from ¥113.57 in New York on Monday, and $1.3181 from $1.3225. The dollar was buying ¥85.73, compared with ¥85.84.
CHINA
Traders said the weak July import numbers dealt a blow to investor confidence as soft Chinese demand for inbound goods and services could have negative implications for the global recovery.
Shanghai’s CSI 300 Index dumped 85.60 points, or 2.9%, to 2,832.64
China's exports grew 38.1% in July from a year earlier, from June's 43.9% rise, and imports rose 22.7%, slowing off from June's 34.1% increase. While imports rose for the ninth consecutive month, the increase was below the 30.2% median increase forecast by economists.
Real estate, brokerage and consumer stocks paced the decline, with Beijing Vantone Real Estate Co. falling 7.1%, Bright Dairy & Food Co. shedding 4.9% and Southwest Securities Co. sliding 6.9%.
Elsewhere;
Singapore’s Straits Times Index returned from holiday to lose 10.77 points or 0.4% to 2,984.29
Korea’s Kospi index slid 9.04 points, or 0.5%, to 1,781.13
Taiwan’s Taiex Index took off 57.75 points, or 0.7%, to 7,976.74
New Zealand’s NZX index docked 9.39 points, or 0.3%, to 3,045.11
Australia’s S&P/ASX 200 let go of 54.20 points, or 1.2%, to 4,540.70
