By V. Phani Kumar, Shri Navaratnam and Philip Vahn
HONG KONG (MarketWatch) -- Asian markets ended mixed Tuesday, with concerns about an impending increase in supply of shares dragging on financial stocks in China, while Hong Kong advanced as investors snapped up property developers.
"The downward correction has probably run its course, but the markets are more likely to trade sideways for a while," said IG Markets strategist Ben Potter in Sydney.
Traders were also watching for signs of progress on debt-strapped Greece, with focus on meetings this week between European Union representatives and Greek authorities to discuss the country's finances.
"At this moment, the bullish factors appear more likely to have the ascendancy," said Greg Gibbs, currency strategist at RBS. "The fears over Greece have probably reached maturity. The more likely outcome is that other euro area members reluctantly back Greek efforts to rein in its budget and prevent severe contagion."
Asian share markets are mostly down on profit taking and a weak lead-in from Wall Street, grouped with Australian earnings letdowns. Also, exporters weigh on Tokyo shares, Dow Jones Newswires' Puja Rajeev reports.
Japan's Nikkei 225 slid 0.5% lower to 10,352.10, China's Shanghai Composite lost 0.9%, Australia's S&P/ASX 200 ended flat, Hong Kong's Hang Seng Index gained 1.2%, Taiwan's Taiex gained 0.5% and South Korea's Kospi inched up 0.1%.
In afternoon trading, India's Sensex inched up 0.5% and Singapore's Straits Times expanded 0.5%.
Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.18% futures gained 29 points in screen trade.
Shares of Ping An Insurance Group Co. /zigman2/quotes/201732043/composite PIAIF +1.44% /zigman2/quotes/202773380/delayed CN:601318 -0.38% fell 8.9% in heavy trading in Shanghai, after the insurer said three of its shareholders will be free to sell a total of 859.8 million yuan-denominated shares worth around 39 billion yuan ($5.7 billion) from Monday, when a three-year lockup period expires. In Hong Kong, the stock /zigman2/quotes/210315058/delayed HK:2318 +0.09% fell 2%.
Many Chinese banks also dropped sharply in Shanghai on concerns about an increase in supply of shares as some of them announced details of their fundraising plans.
China Merchants Bank /zigman2/quotes/209899244/delayed HK:3968 +0.26% lost 2.2% after the lender said it has set a 1.3-for-10 ratio for its planned 22 billion yuan ($3.2 billion) rights issue. Hua Xia Bank /zigman2/quotes/210439631/delayed CN:600015 -0.33% lost 1.3% after the midsize Chinese lender announced plans to issue up to 4.4 billion yuan worth of 10-year subordinated bonds between Friday and March 2 to replenish capital.
"Investors are still jittery over the less favorable immediate credit environment and [are] ignoring the bright long-term economic fundamentals," said Zhou Lin from Huatai Securities.
Hong Kong shares pushed higher after a weak opening, however, paced by property sector stocks after Sun Hung Kai Properties' aggressive bid Monday to buy a plot of land in a government auction. Sentiment was also positive amid expectations that the Hong Kong government may announce tax concessions in its annual budget Wednesday.
"We argue that prevailing share prices have already built in a lot of risk potential but not the potential implications of continued strong property and land sales in the physical market," Goldman Sachs analysts wrote in a report Tuesday.
SHK /zigman2/quotes/205427525/composite SUHJY -0.68% /zigman2/quotes/209086152/delayed HK:16 +0.20% shares gained 3.4%, Sino Land /zigman2/quotes/206858840/composite SNLAY -0.92% /zigman2/quotes/202960683/delayed HK:83 -0.20% climbed 3.6% and Henderson Land Development /zigman2/quotes/208724890/delayed HK:12 +0.63% /zigman2/quotes/200560946/composite HLDCY +0.65% jumped 4.2%.
Japanese exporters were lower as the U.S. dollar slid against the yen. Honda Motor /zigman2/quotes/207173990/composite HMC +1.88% /zigman2/quotes/200490352/delayed JP:7267 +2.43% fell 2.2%, Toyota Motor /zigman2/quotes/203803129/delayed JP:7203 +1.36% /zigman2/quotes/200537742/composite TM +1.12% gave up 0.5% and Sony Corp. /zigman2/quotes/201361720/delayed JP:6758 +2.13% slipped 0.3%.
Shares of some Australian companies declined on disappointment over earnings reports and dividend policies.
Aristocrat Leisure /zigman2/quotes/202581837/delayed AU:ALL +1.47% /zigman2/quotes/207469703/composite ARLUF -1.42% lost 4.3% after its fiscal-year revenue fell 16% and the company said it won't pay a dividend. Newspaper publisher and radio station operator APN News & Media fell 2.9% after slashing its final dividend.
Technology shares were mostly weak in Seoul, with LG Display /zigman2/quotes/204466928/composite LPL -0.55% dropping 4.3%, with Samsung Electronics /zigman2/quotes/202367843/composite SSNLF -29.70% losing 0.8% and LG Electronics falling 2.6%.
"Lingering uncertainties over the debt crisis in Greece and weakening economic momentum in the U.S. and Korea will likely prevent strong gains for stocks for a while," said Hwang Bin-ah at Kyobo Securities. "But most of the external negatives have been reflected [in prices], so there's limited room for downside."
In foreign-exchange markets, traders were looking to U.S. Federal Reserve Chairman Ben Bernanke's testimony to Congress on Wednesday for clues on the Fed's exit strategy from its massive stimulus program.
The euro was at $1.3681 against the U.S. dollar, compared to $1.3597 late in New York Monday, and at 124.36 yen from 123.94 yen. The dollar was buying 90.88 yen compared with 91.13 yen.
"We suspect Bernanke will reiterate the Fed's pledge to keep rates low for an 'extended period,'" said Mike Jones, currency strategist at the Bank of New Zealand. "While this may provide some near-term headwinds for the U.S. dollar, ongoing European sovereign debt concerns and speculation the Fed will lead the G-3 in policy tightening should keep the U.S. dollar index supported," he said.
Lead March Japanese government bond futures were up 0.11 at 139.41 points on weaker Tokyo shares. The yield on the benchmark 10-year JGB was 0.5 basis points lower at 1.335%.
April Nymex crude oil futures were at $80.30 per barrel, one cent lower from Monday's New York close. Spot gold was at $1,118.20 per troy ounce, $5.60 higher.
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