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June 20, 2013, 4:31 a.m. EDT

Asia stocks take double hit from Fed, China

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By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Asian stocks tumbled Thursday as a deterioration in Chinese manufacturing activity and a further spike in Shanghai interbank lending rates applied more selling pressure after the Federal Reserve signaled it may wind down its bond purchases.

Stocks in Hong Kong and Sydney were slammed after preliminary data released by HSBC showed its China Purchasing Managers’ Index for June slipped to a nine-month low of 48.3, staying under the 50-point level for a second straight month. A reading below 50 shows conditions worsened.

The Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +5.24%  slumped 2.9% to finish the day at a nine-month low, and the Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP +2.31% dropped 2.8% for its for its lowest close in more than six months.

/zigman2/quotes/210598030/delayed HSI 18,204.68, +906.74, +5.24%
/zigman2/quotes/210598127/delayed SHCOMP 3,149.75, +71.20, +2.31%
/zigman2/quotes/210598065/realtime DJIA 33,852.53, +3.07, +0.0091%
One-month price chart
Hang Seng Index and Shanghai Composite Vs. Dow Jones industrials

“Beijing prefers to use reforms rather than stimulus to sustain growth. While reforms can boost long-term growth prospects, they still have limited impact in the short term,” HSBC China economist Hongbin Qu said in a statement accompanying the PMI release.

The losses came as two short-term interbank money market rates jumped to record levels , while the People’s Bank of China refrained from injecting liquidity.

“Money conditions have tightened sharply. ... Such monetary tightening is inconsistent with recent soft patch in terms of growth and a weakening of price pressures,” said Dariusz Kowalczyk, a senior economist at Credit Agricole.

Meanwhile, Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.33%  fell 2.1%, South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +1.04%  lost 2%, Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -0.48%  gave up 1.7% and Taiwan’s Taiex dropped 1.4%, after the Fed’s guidance on its bond purchases overnight.

“What caught the market off guard is that the Fed anticipates the pace of recovery in the labor market to be quicker than what the market previously predicted. Consequently, the possibility of scaling down the current bond-buying program is likely to be sooner than what is currently priced in,” said CMC Markets sales trader Miguel Audencial.

Commodity-sector stocks were hurt across the region as prices for gold and other metals dropped after the Fed’s announcement.


Reuters Enlarge Image
Japan stocks join peers in other Asia markets as casualties of the Federal Reserve’s signal that it may slow its bond buying soon.

Shares of Cnooc Ltd. /zigman2/quotes/203421416/delayed HK:883 +1.19%   skidded 4.4% and gold miner Zijin Mining Corp. /zigman2/quotes/204517000/delayed HK:2899 +2.67% /zigman2/quotes/209836076/delayed ZIJMF +7.49%  fell 1.8% in Hong Kong, while Jiangxi Copper Co. /zigman2/quotes/201334192/delayed CN:600362 +1.64% /zigman2/quotes/204256025/delayed JIXAY -2.45%  slid 3.9% in Shanghai.

In Sydney, Fortescue Metals Group Ltd. /zigman2/quotes/202351558/delayed AU:FMG +2.21% /zigman2/quotes/204116626/delayed FSUMF -1.80%  lost 6.6%, also weighed after it cut its outlook for iron-ore shipments, and gold miner Newcrest Mining Ltd. /zigman2/quotes/203840223/delayed AU:NCM -0.10% /zigman2/quotes/206026738/delayed NCMGF +2.51%  gave up 3.6%.

Energy producer Inpex Corp. /zigman2/quotes/206689846/delayed JP:1605 +1.70%   /zigman2/quotes/206936121/delayed IPXHF +2.02% dropped 3.7% in Tokyo, and Korea Zinc Co. /zigman2/quotes/202765860/delayed KR:010130 -2.01%  gave up 1.6% in Seoul.

Chinese banks extended losses in the absence of any efforts by policy makers to ease tight money-market conditions.

Heavyweight stock China Construction Bank Corp. /zigman2/quotes/208062653/delayed HK:9 +7.41% /zigman2/quotes/208974133/delayed HK:939 +2.83%   /zigman2/quotes/207732534/delayed CICHY +2.21%   /zigman2/quotes/208058581/delayed CN:601939 +2.19%  lost 5.2%, and Industrial & Commercial Bank of China Ltd. /zigman2/quotes/201401473/delayed HK:1398 +2.65%   /zigman2/quotes/202401350/delayed IDCBY +2.59%   /zigman2/quotes/202525815/delayed CN:601398 +1.89%  shed 3.8% in Hong Kong. The banks’ Shanghai-listed shares fell 2% and 2.2%, respectively.

The People’s Bank of China — China’s central bank — “is worried by the unsustainable growth rate of credit and is sending a message that market participants shouldn’t take for granted that they will always have access to cheap interbank loans,” Capital Economics wrote in a note to clients.

Click to Play

The Next 24: International markets react to Fed

Overseas stocks react to today's Fed news, while Rite Aid and Kroger are due to report before the U.S. open.

Real-estate stocks retreated in Japan after the Fed’s decision, with Sumitomo Realty & Development Co. /zigman2/quotes/206628792/delayed JP:8830 +1.01%  losing 4.9% and Mitsui Fudosan Co. /zigman2/quotes/205394574/delayed JP:8801 +1.65%   /zigman2/quotes/208297288/delayed MTSFF +1.52%  dropping 3.8%.

Among other notable decliners, shares of Nikon Corp. /zigman2/quotes/203281219/delayed JP:7731 -0.52% /zigman2/quotes/209396469/delayed NINOY -0.36%  fell 5.8%, Hitachi Construction Machinery Corp. /zigman2/quotes/205375504/delayed JP:6305 +0.63% /zigman2/quotes/202415695/delayed HTCMY +3.47%  gave up 5.3%, and convenience-store operator Seven & I Holdings Co. /zigman2/quotes/207666111/delayed JP:3382 -0.61% /zigman2/quotes/210292336/delayed SVNDY -0.54% shed 2.7%.

But some automobile exporters advanced as the U.S. dollar jumped after a rally in Treasury yields overnight in the wake of the Fed decision. Shares of Subaru-maker Fuji Heavy Industries Co. /zigman2/quotes/203522406/delayed JP:7270 -1.08% /zigman2/quotes/200526066/delayed FUJHY -0.61%  rose 1%, and Mazda Motor Corp. /zigman2/quotes/204777714/delayed JP:7261 -0.92% /zigman2/quotes/206326885/delayed MZDAY -0.90%  climbed 2.2%.

Banks and other high dividend-yield issues fell in Australia after the the Australian dollar /zigman2/quotes/210560947/realtime/sampled AUDUSD -0.0150%  got knocked below 93 U.S. cents in the wake of the Fed’s decision.

Shares of Westpac Banking Corp. /zigman2/quotes/203084975/delayed AU:WBC +0.29%   lost 3.7%, and Commonwealth Bank of Australia /zigman2/quotes/200638713/delayed AU:CBA -0.36% /zigman2/quotes/207018701/delayed CBAUF +4.06%  fell 3.1%.

/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
18,204.68
+906.74 +5.24%
Volume: 4.27M
Nov. 29, 2022 4:08p
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,149.75
+71.20 +2.31%
Volume: 39.14B
Nov. 29, 2022 3:00p
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,253.30
+24.20 +0.33%
Volume: 467.00
Nov. 30, 2022 8:13a
loading...
/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,433.39
+25.12 +1.04%
Volume: 550,174
Nov. 29, 2022 3:32p
loading...
/zigman2/quotes/210597971/delayed
JP : Nikkei
28,027.84
-134.99 -0.48%
Volume: 0.00
Nov. 29, 2022 3:15p
loading...
/zigman2/quotes/203421416/delayed
HK : Hong Kong
$ 10.18
+0.12 +1.19%
Volume: 77.09M
Nov. 29, 2022 4:08p
P/E Ratio
3.55
Dividend Yield
6.88%
Market Cap
$459.58 billion
Rev. per Employee
$20.34M
loading...
/zigman2/quotes/204517000/delayed
HK : Hong Kong
$ 10.00
+0.26 +2.67%
Volume: 33.91M
Nov. 29, 2022 4:08p
P/E Ratio
10.41
Dividend Yield
2.33%
Market Cap
$270.03 billion
Rev. per Employee
$6.96M
loading...
/zigman2/quotes/209836076/delayed
US : U.S.: OTC
$ 1.29
+0.09 +7.49%
Volume: 29,600
Nov. 29, 2022 3:42p
P/E Ratio
10.50
Dividend Yield
N/A
Market Cap
$34.55 billion
Rev. per Employee
$890,133
loading...
/zigman2/quotes/201334192/delayed
CN : China: Shanghai
¥ 17.34
+0.28 +1.64%
Volume: 12.49M
Nov. 29, 2022 3:00p
P/E Ratio
10.25
Dividend Yield
2.88%
Market Cap
¥49.00 billion
Rev. per Employee
¥18.05M
loading...
/zigman2/quotes/204256025/delayed
US : U.S.: OTC
$ 66.59
-1.67 -2.45%
Volume: 0.00
March 31, 2022 10:14a
P/E Ratio
6.44
Dividend Yield
0.00%
Market Cap
$8.64 billion
Rev. per Employee
$2.76M
loading...
/zigman2/quotes/202351558/delayed
AU : Australia: Sydney
$ 19.46
+0.42 +2.21%
Volume: 10.44M
Nov. 29, 2022 4:10p
P/E Ratio
7.01
Dividend Yield
10.64%
Market Cap
$58.59 billion
Rev. per Employee
$2.05M
loading...
/zigman2/quotes/204116626/delayed
US : U.S.: OTC
$ 12.53
-0.23 -1.80%
Volume: 45.00
Nov. 28, 2022 1:10p
P/E Ratio
6.23
Dividend Yield
N/A
Market Cap
$39.20 billion
Rev. per Employee
$1.49M
loading...
/zigman2/quotes/203840223/delayed
AU : Australia: Sydney
$ 19.63
-0.02 -0.10%
Volume: 2.58M
Nov. 29, 2022 4:10p
P/E Ratio
13.76
Dividend Yield
2.02%
Market Cap
$17.51 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206026738/delayed
US : U.S.: OTC
$ 13.06
+0.32 +2.51%
Volume: 5,019
Nov. 29, 2022 3:25p
P/E Ratio
12.66
Dividend Yield
2.11%
Market Cap
$11.72 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206689846/delayed
JP : Japan: Tokyo
¥ 1,554.00
+26.00 +1.70%
Volume: 7.76M
Nov. 29, 2022 3:00p
P/E Ratio
6.14
Dividend Yield
3.86%
Market Cap
¥2038.24 billion
Rev. per Employee
¥656.60M
loading...
/zigman2/quotes/206936121/delayed
US : U.S.: OTC
$ 11.12
+0.22 +2.02%
Volume: 2,370
Nov. 29, 2022 3:41p
P/E Ratio
5.43
Dividend Yield
N/A
Market Cap
$14.69 billion
Rev. per Employee
$5.24M
loading...
/zigman2/quotes/202765860/delayed
KR : S. Korea: KRX
633,000
-13,000 -2.01%
Volume: 62,377
Nov. 29, 2022 3:30p
P/E Ratio
15.44
Dividend Yield
3.16%
Market Cap
₩12059.14 billion
Rev. per Employee
₩7.25B
loading...
/zigman2/quotes/208062653/delayed
HK : Hong Kong
$ 0.03
+0.0020 +7.41%
Volume: 78,000
Nov. 29, 2022 4:08p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$96.36 million
Rev. per Employee
$280,136
loading...
/zigman2/quotes/208974133/delayed
HK : Hong Kong
$ 4.72
+0.13 +2.83%
Volume: 397.05M
Nov. 29, 2022 4:08p
P/E Ratio
3.11
Dividend Yield
9.02%
Market Cap
$1160.60 billion
Rev. per Employee
$4.59M
loading...
/zigman2/quotes/207732534/delayed
US : U.S.: OTC
$ 12.03
+0.26 +2.21%
Volume: 106,566
Nov. 29, 2022 3:46p
P/E Ratio
3.12
Dividend Yield
7.71%
Market Cap
$148.45 billion
Rev. per Employee
$581,281
loading...
/zigman2/quotes/208058581/delayed
CN : China: Shanghai
¥ 5.60
+0.12 +2.19%
Volume: 118.54M
Nov. 29, 2022 3:00p
P/E Ratio
4.54
Dividend Yield
6.50%
Market Cap
¥1068.89 billion
Rev. per Employee
¥3.64M
loading...
/zigman2/quotes/201401473/delayed
HK : Hong Kong
$ 3.88
+0.10 +2.65%
Volume: 457.52M
Nov. 29, 2022 4:08p
P/E Ratio
3.19
Dividend Yield
8.85%
Market Cap
$1569.32 billion
Rev. per Employee
$3.94M
loading...
/zigman2/quotes/202401350/delayed
US : U.S.: OTC
$ 9.91
+0.25 +2.59%
Volume: 390,924
Nov. 29, 2022 3:59p
P/E Ratio
3.19
Dividend Yield
7.44%
Market Cap
$200.73 billion
Rev. per Employee
$501,190
loading...
/zigman2/quotes/202525815/delayed
CN : China: Shanghai
¥ 4.32
+0.08 +1.89%
Volume: 411.70M
Nov. 29, 2022 3:00p
P/E Ratio
4.32
Dividend Yield
6.79%
Market Cap
¥1445.31 billion
Rev. per Employee
¥3.23M
loading...
/zigman2/quotes/206628792/delayed
JP : Japan: Tokyo
¥ 3,703.00
+37.00 +1.01%
Volume: 1.33M
Nov. 29, 2022 3:00p
P/E Ratio
11.44
Dividend Yield
1.40%
Market Cap
¥1737.46 billion
Rev. per Employee
¥71.57M
loading...
/zigman2/quotes/205394574/delayed
JP : Japan: Tokyo
¥ 2,775.00
+45.00 +1.65%
Volume: 2.95M
Nov. 29, 2022 3:00p
P/E Ratio
13.88
Dividend Yield
2.16%
Market Cap
¥2595.45 billion
Rev. per Employee
¥88.54M
loading...
/zigman2/quotes/208297288/delayed
US : U.S.: OTC
$ 20.01
+0.30 +1.52%
Volume: 3,410
Nov. 29, 2022 9:46a
P/E Ratio
12.43
Dividend Yield
N/A
Market Cap
$18.70 billion
Rev. per Employee
$716,891
loading...
/zigman2/quotes/203281219/delayed
JP : Japan: Tokyo
¥ 1,339.00
-7.00 -0.52%
Volume: 2.09M
Nov. 29, 2022 3:00p
P/E Ratio
14.04
Dividend Yield
2.99%
Market Cap
¥480.43 billion
Rev. per Employee
¥30.10M
loading...
/zigman2/quotes/209396469/delayed
US : U.S.: OTC
$ 9.57
-0.04 -0.36%
Volume: 2,969
Nov. 29, 2022 3:54p
P/E Ratio
12.40
Dividend Yield
2.21%
Market Cap
$3.46 billion
Rev. per Employee
$242,507
loading...
/zigman2/quotes/205375504/delayed
JP : Japan: Tokyo
¥ 3,200.00
+20.00 +0.63%
Volume: 618,500
Nov. 29, 2022 3:00p
P/E Ratio
8.55
Dividend Yield
3.59%
Market Cap
¥676.23 billion
Rev. per Employee
¥45.23M
loading...
/zigman2/quotes/202415695/delayed
US : U.S.: OTC
$ 40.90
+1.37 +3.47%
Volume: 1.00
Nov. 7, 2022 3:47p
P/E Ratio
6.72
Dividend Yield
3.49%
Market Cap
$4.68 billion
Rev. per Employee
$364,159
loading...
/zigman2/quotes/207666111/delayed
JP : Japan: Tokyo
¥ 5,667.00
-35.00 -0.61%
Volume: 1.15M
Nov. 29, 2022 3:00p
P/E Ratio
20.82
Dividend Yield
1.82%
Market Cap
¥5035.54 billion
Rev. per Employee
¥128.59M
loading...
/zigman2/quotes/210292336/delayed
US : U.S.: OTC
$ 20.32
-0.11 -0.54%
Volume: 91,265
Nov. 29, 2022 3:45p
P/E Ratio
18.23
Dividend Yield
1.35%
Market Cap
$36.28 billion
Rev. per Employee
$1.06M
loading...
/zigman2/quotes/203522406/delayed
JP : Japan: Tokyo
¥ 2,283.50
-25.00 -1.08%
Volume: 3.48M
Nov. 29, 2022 3:00p
P/E Ratio
16.99
Dividend Yield
3.33%
Market Cap
¥1770.46 billion
Rev. per Employee
¥85.44M
loading...
/zigman2/quotes/200526066/delayed
US : U.S.: OTC
$ 8.18
-0.05 -0.61%
Volume: 59,223
Nov. 29, 2022 3:45p
P/E Ratio
15.76
Dividend Yield
1.78%
Market Cap
$12.76 billion
Rev. per Employee
$683,912
loading...
/zigman2/quotes/204777714/delayed
JP : Japan: Tokyo
¥ 1,079.00
-10.00 -0.92%
Volume: 3.28M
Nov. 29, 2022 3:00p
P/E Ratio
4.74
Dividend Yield
3.71%
Market Cap
¥685.92 billion
Rev. per Employee
¥67.02M
loading...
/zigman2/quotes/206326885/delayed
US : U.S.: OTC
$ 3.84
-0.04 -0.90%
Volume: 26,039
Nov. 29, 2022 3:46p
P/E Ratio
4.30
Dividend Yield
1.33%
Market Cap
$4.94 billion
Rev. per Employee
$538,722
loading...
/zigman2/quotes/210560947/realtime/sampled
US : Tullett Prebon
0.6686
-0.0001 -0.0150%
Volume: 0.0000
Nov. 29, 2022 5:04p
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/zigman2/quotes/203084975/delayed
AU : Australia: Sydney
$ 23.83
+0.07 +0.29%
Volume: 4.58M
Nov. 29, 2022 4:10p
P/E Ratio
15.64
Dividend Yield
5.25%
Market Cap
$83.08 billion
Rev. per Employee
$692,203
loading...
/zigman2/quotes/200638713/delayed
AU : Australia: Sydney
$ 108.09
-0.39 -0.36%
Volume: 1.65M
Nov. 29, 2022 4:10p
P/E Ratio
18.21
Dividend Yield
3.56%
Market Cap
$183.28 billion
Rev. per Employee
$592,974
loading...
/zigman2/quotes/207018701/delayed
US : U.S.: OTC
$ 74.12
+2.90 +4.06%
Volume: 1,141
Nov. 29, 2022 9:35a
P/E Ratio
17.21
Dividend Yield
N/A
Market Cap
$122.73 billion
Rev. per Employee
$430,019
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Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau. Follow him on Twitter @MktwKumar.

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