Most Asian stock markets declined Wednesday, with Chinese stocks extending their recent heavy losses on worries Beijing may unveil more tightening measures to restrain prices.
In Japan, a weakened yen pushed Japanese exporters higher, as the Nikkei 225 Index forged ahead 14.56 points, or 0.2%, to 9,811.56
Hong Kong’s Hang Seng Index tumbled 478.56 points, or 2%, to 23,214.50, falling for the sixth time in seven sessions and suffering its biggest one-day percentage fall since late June.
Commodity-linked shares were hit across the region as European sovereign-debt troubles reined in risk appetite and pushed the U.S. dollar higher against major global currencies. Copper, zinc, natural-rubber and aluminum futures fell sharply on the Shanghai Futures Exchange.
A steep overnight fall on Wall Street also hurt sentiment.
Shares of Cathay Pacific Airways ended 0.4% lower in a downbeat Hong Kong market, but continued to outperform after its fiscal-year earnings forecast on Monday.
Newly listed Shirble Department Store Holdings fell 18% to 1.81 Hong Kong dollars (23 U.S. cents) on its first day of trading, pressured by poor broad-market conditions.
Shares of Macau gambling stocks tumbled after the city’s chief executive, Fernando Chui, Tuesday said the local government will enhance the regulation of the gambling industry. Shares of Sands China tumbled 7.1%, SJM Holdings gave up 6.3% and Wynn Macau lost 4%.
In Tokyo, Mazda Motor bucked the market to advance 3.1%, after the Nikkei reported that about 10 firms have decided to buy part of Ford Motor’s 11% stake in the Japanese auto maker.
In Sydney, Qantas Airways lost 2.2% as concerns about the airline’s technical issues persist. On Tuesday, a 747 jet en route to Argentina was forced to return to Sydney after problems with the aircraft’s electrical system, the latest in a string of midair incidents that have plagued the carrier in recent weeks.
Trading in Seoul was choppy, with the market turning positive after persistent selling during much of the morning.
BHP Billiton dropped 2.2% and Rio Tinto sank 3.2% in Sydney, Mitsubishi Materials lost 4% in Tokyo and Korea Zinc lost 2.9% in Seoul.
In Seoul, Tuesday’s news that Hyundai Group was chosen as the preferred bidder for a controlling stake in Hyundai Engineering & Construction continued to weigh on some stocks, as investors worried Hyundai Group will have to borrow heavily for the acquisition. Hyundai Engineering & Construction lost 4.8% and Hyundai Merchant Marine -- an affiliate of Hyundai Group -- stumbled 9.6%.
Hyundai Motor, which lost out to Hyundai Group as the preferred bidder, rose 2.8%, on relief that the distraction of the bidding process was now over.
In foreign-exchange markets, the euro rose against the U.S. dollar after falling to a seven-week low of $1.3446 on Tuesday, amid investor jitters over the simmering euro-zone sovereign-debt crisis.
CHINA
Shanghai’s CSI 300 Index let go of 65.63 points, or 2.1%, to close at 3,103.91.
Selling continued on worries that Beijing could impose price controls, after the state-run Xinhua news agency cited Premier Wen Jiabao as saying China’s cabinet was drafting measures to curtail sharp increases in prices of commodities that affect people’s immediate interests.
In Shanghai, Jiangxi Copper dropped 2.9%, PetroChina and Zijin Mining Group each lost 1.9%, and Datong Coal Industry lost 3%. In Hong Kong, Jiangxi skidded 3.3%.
In other markets
Singapore markets had the day off
Korea’s Kospi Index stepped back 2.02 points to 1,897.11.
Taiwan’s Taiex Index slid 56.67 points, or 0.7%, to 8,255.54
New Zealand’s NZX 50 Index dipped 25.75 points, or 0.8%, to 3,289.31
Australia’s S&P/ASX 200 Index settled 76 points, or 1.6%, to 4,624.30
