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June 21, 2013, 4:35 a.m. EDT

Most Asia stocks drop on U.S. selloff; Japan rises

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By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Most Asian markets fell Friday after the Federal Reserve’s plan to wind down bond purchases led to heavy losses on Wall Street, while Japanese stocks ended higher on the back of a weakened yen.

Mainland Chinese and Hong Kong shares pared their sharp initial declines as a sharp fall in Shanghai interbank rates from Thursday’s record highs aided banks.

The Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -1.99%  ended 0.5% lower and Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -0.19%  fell 0.6%. Both indexes had dropped more than 2% earlier in the day, but pared losses on reports of a sharp fall in the Shanghai interbank money-market rates from the record highs they touched the previous day.

/zigman2/quotes/210598127/delayed SHCOMP 3,273.75, -66.54, -1.99%
/zigman2/quotes/210598030/delayed HSI 24,842.89, -47.79, -0.19%
Shanghai Composite and Hang Seng Index
One-month percentage changes

“With spiking rates likely an intentional move by the Chinese government, it’s probably not a sign of an emerging credit crisis, but rather responsible economic management. The main concern with China continues to be slowing economic growth,” said Rivkin Securities global analyst Tim Radford.

Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK +0.46% staged a big comeback after sinking more than 2% during the morning session, finishing 1.7% higher. It was the best weekly performer among the region’s benchmarks, rising 4.3% from the previous week’s closing levels.

Elsewhere in the region, Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.35%  gave up 0.4%, and South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 -0.03%  dropped 1.5%.

The broad drop in regional stocks came after the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.80%  suffered its worst drop since November 2011 on Thursday, adding to the losses late Wednesday as the Fed signaled it may soon down-size bond purchases under its quantitative-easing program.


Tokyo Stock Exchange Enlarge Image
Asia stocks drop hard but then move off their initial lows.

The decline extended the steep losses suffered Thursday on a combination of worries, including fears related to downbeat manufacturing data from China and a sharp spike in interbank money-market rates in Shanghai.

“In combination, these factors mean that markets are bracing for the day that they no longer have steroid injections to keep them going. Instead, fundamentals will become important to sustain gains in risk assets,” said Crédit Agricole’s Asia head of global markets research Mitul Kotecha.

Commodities also took a major hit, with gold futures sliding more than 6%, while U.S. benchmark crude-oil prices fell nearly 3%.

The stock rebound in Tokyo came as the U.S. dollar /zigman2/quotes/210561789/realtime/sampled USDJPY +0.2366% climbed to about ¥97.79 by the end of the Japanese stock trading session, compared with ¥97.38 in North America Thursday.

Shares of brewer Kirin Holdings Co. /zigman2/quotes/207391157/delayed JP:5406 +2.77% stumbled 4.9%, Hino Motors Ltd. /zigman2/quotes/209422954/delayed JP:7205 +2.46% /zigman2/quotes/207652388/delayed HINOY +13.07% shed 0.8%, and real-estate major Mitsui Fudosan Co. /zigman2/quotes/205394574/delayed JP:8801 -0.99% /zigman2/quotes/208297288/delayed MTSFF +1.18%  gave up 2.1% to rank among the big decliners.

In Hong Kong, shares of China Construction Bank Corp. /zigman2/quotes/208974133/delayed HK:939 -1.21% rose 0.8% and Industrial & Commercial Bank of China Ltd. /zigman2/quotes/202401350/delayed IDCBY +1.47% /zigman2/quotes/201401473/delayed HK:1398 -1.51%  added 1.1%, with both rebounding from early losses.

Also recovering in Shanghai trade, shares of China Merchants Bank Co. /zigman2/quotes/210188047/delayed CN:600036 -0.64%   /zigman2/quotes/208876947/delayed CIHKY +4.31%  rose 2.1%, and China Citic Bank Corp. /zigman2/quotes/206411273/delayed CN:601998 +0.19%   /zigman2/quotes/204346887/delayed CHBJF -13.04%  gained 0.3%.

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However, China Construction Bank Corp. /zigman2/quotes/208058581/delayed CN:601939 -0.16% /zigman2/quotes/207732534/delayed CICHY +1.16% stock plunged 9.5% as it traded without rights to a dividend.

The resource sector suffered further deep losses.

In Sydney, gold miner Newcrest Mining Ltd. /zigman2/quotes/203840223/delayed AU:NCM -3.22% /zigman2/quotes/206026738/delayed NCMGF -3.23%  fell 3.7%, Karoon Gas Australia Ltd. /zigman2/quotes/205368474/delayed AU:KAR 0.00% /zigman2/quotes/207550848/delayed KRNGF 0.00%  lost 0.4%, and uranium producer Paladin Energy Ltd. /zigman2/quotes/203269866/delayed AU:PDN -1.79% /zigman2/quotes/202157125/delayed PALAF -4.44%  gave up 0.5%.

In Tokyo, energy producer Inpex Corp. /zigman2/quotes/206689846/delayed JP:1605 +1.17% /zigman2/quotes/206936121/delayed IPXHF -2.21% lost 2.3%, and steel maker JFE Holdings Inc. /zigman2/quotes/204336633/delayed JP:5411 +1.60%   /zigman2/quotes/203557603/delayed JFEEF -9.76%  sank 2.8%, and in Seoul, Korea Zinc Co. /zigman2/quotes/202765860/delayed KR:010130 -4.11%  fell 3.2%.

/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,273.75
-66.54 -1.99%
Volume: 24.60B
Aug. 12, 2020 12:21p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
24,842.89
-47.79 -0.19%
Volume: 689,021
Aug. 12, 2020 12:05p
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/zigman2/quotes/210597971/delayed
JP : Nikkei
22,854.07
+103.83 +0.46%
Volume: 0.00
Aug. 12, 2020 1:16p
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,117.20
-21.50 -0.35%
Volume: 446,209
Aug. 12, 2020 2:16p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,417.86
-0.81 -0.03%
Volume: 534,516
Aug. 12, 2020 1:16p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,333.69
-26.78 -0.80%
Volume: 2.90B
Aug. 11, 2020 5:08p
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
106.7450
+0.2520 +0.2366%
Volume: 0.0000
Aug. 12, 2020 12:36a
loading...
/zigman2/quotes/207391157/delayed
JP : Japan: Tokyo
¥ 408.00
+11.00 +2.77%
Volume: 2.74M
Aug. 12, 2020 1:15p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
¥131.30 billion
Rev. per Employee
¥52.09M
loading...
/zigman2/quotes/209422954/delayed
JP : Japan: Tokyo
¥ 751.00
+18.00 +2.46%
Volume: 1.66M
Aug. 12, 2020 1:16p
P/E Ratio
25.64
Dividend Yield
0.00%
Market Cap
¥390.34 billion
Rev. per Employee
¥60.20M
loading...
/zigman2/quotes/207652388/delayed
US : U.S.: OTC
$ 70.00
+8.09 +13.07%
Volume: 14.00
Aug. 11, 2020 5:19p
P/E Ratio
25.89
Dividend Yield
2.08%
Market Cap
$3.58 billion
Rev. per Employee
$545,250
loading...
/zigman2/quotes/205394574/delayed
JP : Japan: Tokyo
¥ 1,893.50
-19.00 -0.99%
Volume: 2.50M
Aug. 12, 2020 1:16p
P/E Ratio
11.23
Dividend Yield
2.32%
Market Cap
¥1712.59 billion
Rev. per Employee
¥101.67M
loading...
/zigman2/quotes/208297288/delayed
US : U.S.: OTC
$ 16.24
+0.19 +1.18%
Volume: 0.00
Aug. 6, 2020 2:11p
P/E Ratio
10.45
Dividend Yield
N/A
Market Cap
$15.89 billion
Rev. per Employee
$923,573
loading...
/zigman2/quotes/208974133/delayed
HK : Hong Kong
HK$ 5.73
-0.07 -1.21%
Volume: 61.48M
Aug. 12, 2020 11:59a
P/E Ratio
4.71
Dividend Yield
6.10%
Market Cap
HK$1431.82 billion
Rev. per Employee
HK$3.31M
loading...
/zigman2/quotes/202401350/delayed
US : U.S.: OTC
$ 11.90
+0.17 +1.47%
Volume: 49,715
Aug. 11, 2020 3:41p
P/E Ratio
4.34
Dividend Yield
5.19%
Market Cap
$243.98 billion
Rev. per Employee
$387,287
loading...
/zigman2/quotes/201401473/delayed
HK : Hong Kong
HK$ 4.58
-0.07 -1.51%
Volume: 83.98M
Aug. 12, 2020 11:59a
P/E Ratio
4.62
Dividend Yield
6.28%
Market Cap
HK$1890.87 billion
Rev. per Employee
HK$3.03M
loading...
/zigman2/quotes/210188047/delayed
CN : China: Shanghai
¥ 37.30
-0.24 -0.64%
Volume: 60.04M
Aug. 12, 2020 11:30a
P/E Ratio
10.13
Dividend Yield
3.22%
Market Cap
¥916.86 billion
Rev. per Employee
¥3.10M
loading...
/zigman2/quotes/208876947/delayed
US : U.S.: OTC
$ 24.98
+1.03 +4.31%
Volume: 18,586
Aug. 11, 2020 3:46p
P/E Ratio
N/A
Dividend Yield
2.83%
Market Cap
$131.54 billion
Rev. per Employee
$468,258
loading...
/zigman2/quotes/206411273/delayed
CN : China: Shanghai
¥ 5.21
+0.01 +0.19%
Volume: 23.56M
Aug. 12, 2020 11:30a
P/E Ratio
5.85
Dividend Yield
4.59%
Market Cap
¥223.39 billion
Rev. per Employee
¥5.22M
loading...
/zigman2/quotes/204346887/delayed
US : U.S.: OTC
$ 0.40
-0.06 -13.04%
Volume: 0.00
July 30, 2020 11:56a
P/E Ratio
3.09
Dividend Yield
N/A
Market Cap
$31.59 billion
Rev. per Employee
$798,893
loading...
/zigman2/quotes/208058581/delayed
CN : China: Shanghai
¥ 6.19
-0.01 -0.16%
Volume: 48.55M
Aug. 12, 2020 11:30a
P/E Ratio
5.72
Dividend Yield
5.17%
Market Cap
¥1287.68 billion
Rev. per Employee
¥2.76M
loading...
/zigman2/quotes/207732534/delayed
US : U.S.: OTC
$ 14.82
+0.17 +1.16%
Volume: 68,966
Aug. 11, 2020 3:49p
P/E Ratio
4.76
Dividend Yield
5.14%
Market Cap
$184.75 billion
Rev. per Employee
$422,749
loading...
/zigman2/quotes/203840223/delayed
AU : Australia: Sydney
$ 34.11
-1.14 -3.22%
Volume: 3.62M
Aug. 12, 2020 2:16p
P/E Ratio
32.74
Dividend Yield
0.96%
Market Cap
$29.52 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206026738/delayed
US : U.S.: OTC
$ 24.55
-0.82 -3.23%
Volume: 12,895
Aug. 11, 2020 2:01p
P/E Ratio
33.82
Dividend Yield
N/A
Market Cap
$21.13 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205368474/delayed
AU : Australia: Sydney
$ 0.77
0.00 0.00%
Volume: 2.63M
Aug. 12, 2020 2:15p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$414.97 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/207550848/delayed
US : U.S.: OTC
$ 0.49
0.00 0.00%
Volume: 0.00
Aug. 3, 2020 2:23p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$280.96 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/203269866/delayed
AU : Australia: Sydney
$ 0.14
-0.0025 -1.79%
Volume: 5.03M
Aug. 12, 2020 2:16p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$283.90 million
Rev. per Employee
$463,060
loading...
/zigman2/quotes/202157125/delayed
US : U.S.: OTC
$ 0.11
-0.0050 -4.44%
Volume: 632,169
Aug. 11, 2020 3:53p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$203.22 million
Rev. per Employee
$348,576
loading...
/zigman2/quotes/206689846/delayed
JP : Japan: Tokyo
¥ 699.30
+8.10 +1.17%
Volume: 4.42M
Aug. 12, 2020 1:16p
P/E Ratio
N/A
Dividend Yield
3.43%
Market Cap
¥972.50 billion
Rev. per Employee
¥291.81M
loading...
/zigman2/quotes/206936121/delayed
US : U.S.: OTC
$ 6.65
-0.15 -2.21%
Volume: 11,947
Aug. 7, 2020 5:19p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$10.19 billion
Rev. per Employee
$2.64M
loading...
/zigman2/quotes/204336633/delayed
JP : Japan: Tokyo
¥ 827.00
+13.00 +1.60%
Volume: 2.35M
Aug. 12, 2020 1:16p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
¥438.79 billion
Rev. per Employee
¥64.46M
loading...
/zigman2/quotes/203557603/delayed
US : U.S.: OTC
$ 6.61
-0.72 -9.76%
Volume: 0.00
July 31, 2020 9:30a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.73 billion
Rev. per Employee
$583,723
loading...
/zigman2/quotes/202765860/delayed
KR : S. Korea: KRX
432,000
-18,500 -4.11%
Volume: 92,957
Aug. 12, 2020 1:16p
P/E Ratio
12.33
Dividend Yield
3.24%
Market Cap
₩7953.41 billion
Rev. per Employee
N/A
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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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