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June 19, 2013, 4:34 a.m. EDT

China stocks fall, Japan jumps, ahead of Fed meet

Shanghai Composite ends at lowest level in more than six months

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By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Chinese and South Korean stocks fell Wednesday on caution ahead of the Federal Reserve’s monetary-policy decision later in the day, while Japanese shares rallied in the wake of strong overnight gains on Wall Street.

The Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -0.79%  outperformed regional markets by a wide margin, finishing the day 1.8% higher. Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -2.31%  gained 1%.

Their performance followed another triple-digit-point gain for the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -3.15%  Tuesday, as the Federal Open Market Committee began its two-day policy meeting.

On the downside, the Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -0.83%  fell 0.7% to 2,143.45, the benchmark’s lowest finish since mid-December. Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -0.73%  dropped 1.1%, and South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 -1.28%  declined 0.7%.


Tokyo Stock Exchange Enlarge Image
Japanese stocks end the morning with strong gains.

Traders said the FOMC decision and Fed Chairman Ben Bernanke’s press conference later Wednesday will likely to remove a key source of uncertainty that has affected markets of late in terms of how long the central bank will maintain its $85 billion a month in bond purchases.

“So, if investors get a completely clear picture of where the FOMC is heading, bargain-hunting is on,” said IG Markets strategist Evan Lucas.

However, “if the Fed should surprise the market with tapering talk, all bets are off,” he said.

Some other analysts said that even if the Fed doesn’t immediately signal its intention to downsize the quantitative-easing program — the QE has been a key tailwind behind global equity markets for several quarters — concerns that it will eventually do so may still have an impact.

“Although we don’t expect the Fed to decide to scale back its asset purchases today, we do think the prospect of an eventual tapering will continue to dampen capital inflows into emerging-market equities in particular, as it undermines investors’ appetite for risk,” John Higgins at Capital Economics wrote to clients.

Stock movers

In Japan, shipping stocks posted hefty gains, with utilities, steel makers and financials also making strong advances.

Shares of Kawasaki Kisen Kaisha Ltd. /zigman2/quotes/206655821/delayed JP:7012 -0.95% /zigman2/quotes/200808822/delayed KWHIY -1.58% soared 9.5%, JFE Holdings Inc. /zigman2/quotes/204336633/delayed JP:5411 +1.14% /zigman2/quotes/203557603/delayed JFEEF -7.70%  climbed 6.4%, and Sumitomo Mitsui Financial Group Inc. /zigman2/quotes/203656770/delayed JP:8316 -1.15%   /zigman2/quotes/206471416/composite SMFG -1.08%  added 5.2%.

Camera manufacturers rose in the wake of a Nikkei newspaper report that the top eight digital-camera makers are poised to get on the path to recovery, with majors Canon Inc. and Nikon Corp. anticipating strong profit growth.

Click to Play

The Next 24: Markets await Fed

Everyone is waiting for the Fed statement and press conference, while bellwether FedEx is due to report before the bell. Photo: AP

Canon /zigman2/quotes/207639533/delayed JP:7751 +3.58% /zigman2/quotes/210242912/composite CAJ +3.08%  climbed 2.4%, and Nikon /zigman2/quotes/203281219/delayed JP:7731 +0.09% /zigman2/quotes/209396469/delayed NINOY +0.05%  gained 1.7%.

In Sydney, shares of News Corp. /zigman2/quotes/209121543/delayed AU:NWS -4.94% /zigman2/quotes/204787942/composite NWS -5.67% tumbled 6.9% as the stock traded following the spin-off of the media group’s publishing assets. The company has retained the group’s entertainment assets.

Meanwhile, shares of New Newscorp Inc.  — the company which holds the group’s publishing assets, including MarketWatch, the publisher of this report — was down 45 Australian cents at A$14.55 ($13.82) in heavy volumes as it began trading for the first time.

Losses were spread across sectors in Hong Kong, with shares of China Coal Energy Co. /zigman2/quotes/201486584/delayed HK:1898 +0.77%   /zigman2/quotes/205321671/delayed CCOZY -1.24%  falling 3.4%, China Construction Corp. /zigman2/quotes/208974133/delayed HK:939 -0.63%   /zigman2/quotes/207732534/delayed CICHY -0.44%  dropping 2.5%, and telecommunications firm China Unicom Hong Kong Ltd. /zigman2/quotes/205091392/delayed HK:762 -2.47% /zigman2/quotes/205476740/composite CHU -2.39%  shedding 2.5%.

Shares of heavyweight HSBC Holdings PLC /zigman2/quotes/202687335/delayed HK:5 -0.80%  slipped 0.4% after the Hong Kong Monetary Authority Tuesday said it was investigating HSBC and other banks over the possible rigging of local benchmark interest rates.

Financial stocks were mostly lower in Shanghai, meanwhile. Shares of China Citic Bank Corp. /zigman2/quotes/204346887/delayed CHBJF -18.18%   /zigman2/quotes/206411273/delayed CN:601998 +0.18%  dropped 1.8%, China Life Insurance Co. /zigman2/quotes/204766889/delayed CN:601628 -0.39%   /zigman2/quotes/206573290/composite LFC -2.11%  fell 1.1%, and Citic Securities Co. /zigman2/quotes/210326178/delayed CN:600030 -1.98%   /zigman2/quotes/207216844/delayed CIIHF -8.45% retreated 0.6%.

Several gold miners fell after the precious metal’s futures suffered a sharp price decline in the U.S. amid uncertainty related to the Fed’s monetary stimulus.

Perseus Mining Ltd. /zigman2/quotes/205179925/delayed AU:PRU -2.77%   /zigman2/quotes/202190906/delayed PMNXF +0.48%  tumbled 6.6% shed 0.5% in Sydney, Zhaojin Mining Industry Co. /zigman2/quotes/203361399/delayed HK:1818 +1.60% /zigman2/quotes/200275285/delayed ZHAOF +0.77% fell 2.6% in Hong Kong, and Zijin Mining Group Co. /zigman2/quotes/204517000/delayed HK:2899 -0.82%   /zigman2/quotes/209836076/delayed ZIJMF -9.61%  lost 2.1% in Shanghai.

/zigman2/quotes/210597971/delayed
JP : Nikkei
22,426.19
-179.22 -0.79%
Volume: 0.00
Feb. 26, 2020 3:15p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,708.10
-158.50 -2.31%
Volume: 1.01M
Feb. 26, 2020 5:38p
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,081.36
-879.44 -3.15%
Volume: 513.27M
Feb. 25, 2020 4:59p
loading...
/zigman2/quotes/210598127/delayed
CN : China: Shanghai
2,987.93
-25.12 -0.83%
Volume: 46.90B
Feb. 26, 2020 3:01p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
26,696.49
-196.74 -0.73%
Volume: 2.04M
Feb. 26, 2020 4:08p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,076.77
-26.84 -1.28%
Volume: 810,937
Feb. 26, 2020 3:32p
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/zigman2/quotes/206655821/delayed
JP : Japan: Tokyo
¥ 2,077.00
-20.00 -0.95%
Volume: 911,500
Feb. 26, 2020 3:00p
P/E Ratio
16.66
Dividend Yield
3.37%
Market Cap
¥350.29 billion
Rev. per Employee
¥44.03M
loading...
/zigman2/quotes/200808822/delayed
US : U.S.: OTC
$ 7.39
-0.12 -1.58%
Volume: 2,712
Feb. 25, 2020 3:57p
P/E Ratio
16.15
Dividend Yield
2.60%
Market Cap
$3.18 billion
Rev. per Employee
$399,164
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/zigman2/quotes/204336633/delayed
JP : Japan: Tokyo
¥ 1,062.00
+12.00 +1.14%
Volume: 4.89M
Feb. 26, 2020 3:00p
P/E Ratio
9.06
Dividend Yield
1.88%
Market Cap
¥604.64 billion
Rev. per Employee
¥64.46M
loading...
/zigman2/quotes/203557603/delayed
US : U.S.: OTC
$ 9.23
-0.77 -7.70%
Volume: 101.00
Feb. 24, 2020 1:55p
P/E Ratio
8.76
Dividend Yield
N/A
Market Cap
$5.38 billion
Rev. per Employee
$583,723
loading...
/zigman2/quotes/203656770/delayed
JP : Japan: Tokyo
¥ 3,598.00
-42.00 -1.15%
Volume: 10.11M
Feb. 26, 2020 3:00p
P/E Ratio
7.10
Dividend Yield
5.00%
Market Cap
¥4984.85 billion
Rev. per Employee
¥79.40M
loading...
/zigman2/quotes/206471416/composite
US : U.S.: NYSE
$ 6.41
-0.07 -1.08%
Volume: 3.75M
Feb. 25, 2020 6:30p
P/E Ratio
6.88
Dividend Yield
4.41%
Market Cap
$43.89 billion
Rev. per Employee
$719,197
loading...
/zigman2/quotes/207639533/delayed
JP : Japan: Tokyo
¥ 2,821.50
+97.50 +3.58%
Volume: 14.84M
Feb. 26, 2020 3:00p
P/E Ratio
18.50
Dividend Yield
5.67%
Market Cap
¥2897.88 billion
Rev. per Employee
¥19.98M
loading...
/zigman2/quotes/210242912/composite
US : U.S.: NYSE
$ 24.77
+0.74 +3.08%
Volume: 1.43M
Feb. 25, 2020 6:30p
P/E Ratio
17.98
Dividend Yield
5.07%
Market Cap
$26.35 billion
Rev. per Employee
$180,925
loading...
/zigman2/quotes/203281219/delayed
JP : Japan: Tokyo
¥ 1,158.00
+1.00 +0.09%
Volume: 3.59M
Feb. 26, 2020 3:00p
P/E Ratio
9.96
Dividend Yield
5.18%
Market Cap
¥439.92 billion
Rev. per Employee
¥34.15M
loading...
/zigman2/quotes/209396469/delayed
US : U.S.: OTC
$ 10.16
+0.0050 +0.05%
Volume: 93,327
Feb. 25, 2020 3:59p
P/E Ratio
9.55
Dividend Yield
3.87%
Market Cap
$3.99 billion
Rev. per Employee
$309,299
loading...
/zigman2/quotes/209121543/delayed
AU : Australia: Sydney
$ 20.20
-1.05 -4.94%
Volume: 265,120
Feb. 26, 2020 4:10p
loading...
/zigman2/quotes/204787942/composite
US : U.S.: Nasdaq
$ 13.24
-0.80 -5.67%
Volume: 983,519
Feb. 25, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
1.51%
Market Cap
$7.79 billion
Rev. per Employee
$354,893
loading...
/zigman2/quotes/201486584/delayed
HK : Hong Kong
HK$ 2.62
+0.02 +0.77%
Volume: 6.73M
Feb. 26, 2020 4:08p
P/E Ratio
6.00
Dividend Yield
3.39%
Market Cap
HK$34.47 billion
Rev. per Employee
HK$2.78M
loading...
/zigman2/quotes/205321671/delayed
US : U.S.: OTC
$ 7.18
-0.09 -1.24%
Volume: 0.00
Feb. 13, 2020 9:41a
P/E Ratio
8.94
Dividend Yield
2.52%
Market Cap
$13.70 billion
Rev. per Employee
$354,816
loading...
/zigman2/quotes/208974133/delayed
HK : Hong Kong
HK$ 6.32
-0.04 -0.63%
Volume: 446.69M
Feb. 26, 2020 4:08p
P/E Ratio
5.30
Dividend Yield
5.52%
Market Cap
HK$1590.07 billion
Rev. per Employee
HK$3.31M
loading...
/zigman2/quotes/207732534/delayed
US : U.S.: OTC
$ 15.99
-0.07 -0.44%
Volume: 296,296
Feb. 25, 2020 3:59p
P/E Ratio
5.20
Dividend Yield
4.71%
Market Cap
$1962.40 billion
Rev. per Employee
$422,749
loading...
/zigman2/quotes/205091392/delayed
HK : Hong Kong
HK$ 6.31
-0.16 -2.47%
Volume: 55.20M
Feb. 26, 2020 4:08p
P/E Ratio
15.03
Dividend Yield
2.47%
Market Cap
HK$197.97 billion
Rev. per Employee
HK$1.29M
loading...
/zigman2/quotes/205476740/composite
US : U.S.: NYSE
$ 8.16
-0.20 -2.39%
Volume: 654,311
Feb. 25, 2020 6:30p
P/E Ratio
15.24
Dividend Yield
2.19%
Market Cap
$24.97 billion
Rev. per Employee
$164,278
loading...
/zigman2/quotes/202687335/delayed
HK : Hong Kong
HK$ 55.60
-0.45 -0.80%
Volume: 88.50M
Feb. 26, 2020 4:08p
P/E Ratio
23.52
Dividend Yield
7.15%
Market Cap
HK$1138.58 billion
Rev. per Employee
HK$2.88M
loading...
/zigman2/quotes/204346887/delayed
US : U.S.: OTC
$ 0.45
-0.10 -18.18%
Volume: 0.00
Jan. 3, 2020 12:53p
P/E Ratio
3.96
Dividend Yield
N/A
Market Cap
$40.87 billion
Rev. per Employee
$798,893
loading...
/zigman2/quotes/206411273/delayed
CN : China: Shanghai
¥ 5.56
+0.01 +0.18%
Volume: 26.64M
Feb. 26, 2020 3:00p
P/E Ratio
7.14
Dividend Yield
4.14%
Market Cap
¥271.59 billion
Rev. per Employee
¥5.22M
loading...
/zigman2/quotes/204766889/delayed
CN : China: Shanghai
¥ 30.93
-0.12 -0.39%
Volume: 16.51M
Feb. 26, 2020 3:00p
P/E Ratio
17.76
Dividend Yield
0.52%
Market Cap
¥877.62 billion
Rev. per Employee
¥6.30M
loading...
/zigman2/quotes/206573290/composite
US : U.S.: NYSE
$ 11.60
-0.25 -2.11%
Volume: 881,327
Feb. 25, 2020 6:30p
P/E Ratio
9.11
Dividend Yield
0.73%
Market Cap
$17.26 billion
Rev. per Employee
$970,796
loading...
/zigman2/quotes/210326178/delayed
CN : China: Shanghai
¥ 24.71
-0.50 -1.98%
Volume: 288.16M
Feb. 26, 2020 3:00p
P/E Ratio
23.77
Dividend Yield
1.42%
Market Cap
¥325.88 billion
Rev. per Employee
¥2.96M
loading...
/zigman2/quotes/207216844/delayed
US : U.S.: OTC
$ 1.95
-0.18 -8.45%
Volume: 50.00
Feb. 25, 2020 5:20p
P/E Ratio
12.89
Dividend Yield
N/A
Market Cap
$26.50 billion
Rev. per Employee
$448,078
loading...
/zigman2/quotes/205179925/delayed
AU : Australia: Sydney
$ 1.23
-0.04 -2.77%
Volume: 6.94M
Feb. 26, 2020 4:10p
P/E Ratio
55.91
Dividend Yield
N/A
Market Cap
$1.48 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202190906/delayed
US : U.S.: OTC
$ 0.82
+0.0039 +0.48%
Volume: 9,348
Feb. 25, 2020 3:44p
P/E Ratio
54.86
Dividend Yield
N/A
Market Cap
$961.20 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/203361399/delayed
HK : Hong Kong
HK$ 9.54
+0.15 +1.60%
Volume: 10.69M
Feb. 26, 2020 4:08p
P/E Ratio
64.90
Dividend Yield
0.48%
Market Cap
HK$30.24 billion
Rev. per Employee
HK$1.31M
loading...
/zigman2/quotes/200275285/delayed
US : U.S.: OTC
$ 1.31
+0.01 +0.77%
Volume: 0.00
Dec. 18, 2019 5:19p
P/E Ratio
70.05
Dividend Yield
N/A
Market Cap
$3.85 billion
Rev. per Employee
$166,560
loading...
/zigman2/quotes/204517000/delayed
HK : Hong Kong
HK$ 3.64
-0.03 -0.82%
Volume: 36.85M
Feb. 26, 2020 4:08p
P/E Ratio
19.64
Dividend Yield
3.13%
Market Cap
HK$93.13 billion
Rev. per Employee
HK$6.84M
loading...
/zigman2/quotes/209836076/delayed
US : U.S.: OTC
$ 0.45
-0.05 -9.61%
Volume: 59,500
Feb. 25, 2020 2:46p
P/E Ratio
18.94
Dividend Yield
N/A
Market Cap
$11.34 billion
Rev. per Employee
$872,997
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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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