Asian stocks continued to consolidate on Friday with most benchmarks closing lower as investors fret over whether China will face a major correction.
Speculation and warnings over booming Chinese equities have dominated trade in recent days with many fearing Chinese markets have gone too far too fast and a steep sell-off is sure to follow, which could impact across the world.
However, on the day Shanghai again ignored the pessimists and closed up 0.69 percent at a record high although the rest of the region remained unconvinced with Tokyo slumping 1.22 percent and Hong Kong shedding 1.34 percent.
PHOTO: AP
Falls on Wall Street and in metal prices added to the negative tone resulting in Taipei shedding 0.69 percent, while Sydney was down 0.42 percent, Manila fell 0.84 percent and Wellington dropped 0.65 percent.
Elsewhere, Jakarta was off 0.87 percent, Singapore shed 1.24 percent while losses in Seoul were limited to 0.12 percent, Bangkok was down a modest 0.22 percent and late buying helped Kuala Lumpur to close flat.
Mumbai bucked the trend and rose 0.85 percent on support for software stocks.
TAIPEI
Share prices closed 0.69 percent lower as investors took note of declines on Wall Street overnight after the release of US data showing strong house sales for last month dampened hopes of an interest-rate cut.
Dealers said technical concerns outweighed gains in the local currency, with investors continuing their cautious approach while awaiting further developments on the global front.
The weighted index closed down 56.44 points at 8,159.97 on turnover of NT$95.18 billion (US$2.86 billion).
While large-cap technology stocks fell in tandem with their US peers, the construction sector managed to score gains thanks to reports that the government is considering easing both land value increments and estate taxes to further boost an already dynamic property market, dealers said.
Mega International Investment Services (
"The Wall Street factor came at a time when Taipei stocks were already clouded by lingering technical worries," he said.
Following recent gains that put the market near seven-year highs, there were mounting concerns due to the the long-term technical resistance level on the index being around 8,250-8,300 points.
TOKYO
Share prices closed down 1.22 percent, hit by overnight losses on Wall Street and continued nervousness about the outlook for Chinese stocks.
The NIKKEI-225 index fell 215.76 points to 17,481.21. Volume was 1.897 billion shares after 1.895 billion on Thursday.
"Tokyo shares declined [due to] falls on US stock markets overnight," said Kazuhiro Takahashi, equity general manager at Daiwa Securities SMBC.
"Investors earlier bought shares in reaction to positive corporate earnings outlooks, especially of banks, but this buying seems to have run its course," he said.
"I don't think that the global equity plunge at the end of February would happen again but investors remain cautious about further movements in Chinese share prices," said Mitsushige Akino, chief fund manager at Ichiyoshi Management.
HONG KONG
Share prices closed 1.34 percent lower as investors faced the double impact of fears of a market bubble forming in China and fading hopes for an early reduction in interest rates in the US.
Dealers said the market initially tracked losses on Wall Street, where hopes that an interest rate cut would be needed to stimulate the country's economy were dampened by strong US April housing data.
But market jitters grew worse as investors also feared the possibility of an impending correction in China markets after former US Federal Reserve chairman Alan Greenspan warned that a bubble is forming there, they added.
The Hang Seng Index closed down 278.31 points at 20,520.66 on turnover of HK$67.98 billion (US$8.7 billion).
"The market was affected by Greenspan's comments and retracement in the US markets," said Kenny Tang, associate director at Tung Tai Securities.
SEOUL
Share prices closed lower as foreign investors unloaded shares following the broad global market correction and ahead of the weekend.
Dealers said some investors also belatedly responded to the reported warning by former US Federal Reserve chairman Alan Greenspan of a possible "dramatic contraction" in Chinese stocks.
The main index closed off its low for the day as bargain-hunting picked up in late trade, with China market gains also helping to trim losses.
The KOSPI index ended down 2.03 points at 1,644.56.
Brokerages, lenders and steelmakers led Friday's decline.
SHANGHAI
Share prices closed 0.69 percent higher in yet another record finish as investors ignored a series of warnings at home and abroad that a sharp correction was due.
Dealers said turnover was again very heavy on continued strength in the currency, which attracts in even more money, as investors discounted a series of warnings about the unsustainability of the markets' rise.
Even the hard currency B-share markets, which had sold off heavily earlier this week after outpacing their A-share peers in recent weeks, bounced back strongly as investors ignored the forecasts of doom and hunted for bargains.
The Shanghai Composite Index closed up 28.64 points at a record 4,179.78.
SYDNEY
Share prices closed down 0.42 percent after an overnight fall in metal prices combined with profit taking to push the market further off record highs.
Dealers said recent comments from former Federal Reserve chairman Alan Greenspan regarding a possible "dramatic correction" in Chinese stocks had added further to negative sentiment.
At the same time, the downturn was relatively modest and should be seen in the context of a market which has chalked up a record-breaking performance over many months, they added.
The S&P/ASX 200 fell 26.3 points to 6,252.8 while the broader All Ordinaries lost 25.3 points to 6,273.3.
Macquarie Asset Management private client advisor Joseph Youssef said the sell-off was not surprising given the S&P/ASX 200 had hit a record 6,369.0 on Monday.
SINGAPORE
Share prices closed 1.24 percent lower as investors took profits amid falls across the region over fears of a market bubble forming in China.
The Straits Times Index closed down 43.63 points at 3,486,63 on volume of 2.68 billion shares.
KUALA LUMPUR
Share prices closed down 0.14 percent, little changed after strong bargain-hunting in late trade of select blue-chips and large-cap stocks offset earlier losses.
The composite index closed down 1.9 points at 1,339.08. Volume traded was 951.70 million shares.
BANGKOK
Share prices closed 0.22 percent lower as domestic investors cautioned ahead of next week's court ruling that could result in the dissolution of major political parties.
Dealers said investors sold energy and construction stocks.
The composite index fell 1.58 points to 719.14 on turnover of 2.2 billion shares.
JAKARTA
Share prices closed 0.87 percent lower, tracking falls in Wall Street overnight and in regional markets.
The composite index closed down 18.171 at 2,060.434. Volume was 5.99 billion shares.
MANILA
Share prices closed 0.84 percent lower as investors locked in profits after Wall Street's slump overnight.
The composite index gave up 29.01 points to 3,441.76.
WELLINGTON
Share prices closed down 0.65 percent, following the lead of overseas markets.
The NZX-50 gross index fell 27.98 points to 4,305.25.
MUMBAI
Share prices rose 0.85 percent, snapping two days of losses in a late afternoon recovery on buying in software stocks.
The 30-share SENSEX rose 120.34 points to 14,338.45.
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