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.
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.
RSS