Asian stocks retreated from the highest level since June 2008 on Tuesday, 21 May 2013 as Australian stocks declined, and Hong Kong equities snapped a three-day winning run weighed by overnight losses on Wall Street and uncertainty over U.S. monetary policy. Japanese and mainland Chinese shares overcame choppy trade to finish higher, meanwhile, with a weakened yen helping the Nikkei Stock Average set a fresh multiyear high.
The S&P/ASX 200 dropped 0.6% in Sydney, the Hang Seng Index gave up 0.5% in Hong Kong and the Kospi was off 0.1% in Seoul. Japan's Nikkei changed direction a few times before rising 0.1%, its highest finish since December 2007.
Among major stocks under focus, Industrial & Commercial Bank of China fell 2.1% to weigh on the Hong Kong market, after Goldman Sachs sold its remaining stake in the giant Chinese bank for about $1.12 billion. Among other notable Hong Kong losers, China Construction Bank fell 1.4%, and Internet services major Tencent Holdings fell 1.8%.
Shares of banks and other high divided-yielding companies were under pressure in Sydney, with Australia & New Zealand Banking Group off 2%, Westpac Banking retreating 1%. Westpac Banking and Commonwealth Bank of Australia, the two biggest Australian lenders, each slid at least 1% as minutes from a central bank meeting highlighted concern about business conditions. ICBC, the world's largest lender by market value, sank 2.1% in Hong Kong. Tokyo Electric Power gained 12%, taking this month's rise to 90%.
In Tokyo, Softbank fell 3.8% after the Nikkei newspaper reported the wireless carrier was planning to set a record with a 400 billion yen ($3.91 billion) retail bond issuance. However, Toshiba gained 0.9% on another Nikkei report that the conglomerate plans to sell a semiconductor assembly plant in China to a Taiwanese firm.
Several exporters came off the day's lows as the yen weakened after Japan's Economy Minister Akira Amari said he hopes the yen's foreign-exchange rates will settle at a level that corresponds with the relative strength of the domestic economy. Sony inched up 0.1%, and Renesas Electronics Corp. added 1.6%, with each rebounding from initial losses.
GCL-Poly Energy Holdings the world's No. 1 maker of polysilicon used in solar panels, rose 9% to HK$1.93 on a report the U.S. is in talks with the European Union and China to settle a dispute over solar-energy equipment. GS Yuasa Corp., the maker of batteries for Boeing's 787 Dreamliner, rose 17% to 558 yen, the biggest advance since November 2008. The shares gained after United Airlines, the only U.S. carrier that operates the aircraft, restarted flights of the plane yesterday. The 787 was grounded for more than three months after fires were linked to the batteries.
PICC Property & Casualty Co. sank 2.6% to HK$9.94 after China's largest non-life insurer said it plans to raise 5.8 billion yuan in a share sale.
SoftBank Corp. fell 3.8% to 5,850 yen after takeover target Sprint Nextel Corp. said it will engage in talks with competing bidder Dish Network Corp.
The Reserve Bank of Australia released minutes of a May 7 meeting in which it described a cut to record-low rates as appropriate to encourage sustainable growth. Business confidence was cited as remaining weak. The nation's lenders declined. Westpac fell 1% to A$31.48 and Commonwealth Bank sank 1.4% to A$72.48, retreating from a record high.
In Japan, Governor Haruhiko Kuroda said April 4 he would double central bank purchases of government bonds to more than 7 trillion yen ($68.4 billion) a month to achieve 2% inflation in two years.
Powered by Capital Market - Live News
