Asian Markets at Close Report for August 30, 2012 -.: Asia stocks fall on data, commodities, earnings

By Sarah Turner and Chris Oliver, MarketWatch 

HONG KONG (MarketWatch) — Asian markets ended sharply lower Thursday, as weak data, declining commodity prices and poorly received earnings put pressure on major markets a day ahead of a much-awaited speech from U.S. Federal Reserve Chairman Ben Bernanke. 

Japan’s Nikkei Stock Average JP:100000018 -0.95%  fell 1%, South Korea’s Kospi KR:SEU -1.15%  lost 1.2%, and Australia’s S&P/ASX 200 index AU:XJO -0.93%  fell 0.9%. 

Hong Kong’s Hang Seng Index HK:HSI -1.19%  finished 1.2% lower, its lowest closing level since late July 27.

Among the few upbeat markets, the Shanghai Composite Index CN:000001 -0.03%  ended little changed, recouping from losses, after closing at a fresh three-and-a-half year low on Wednesday.

Indonesia’s Composite Index retreated 2%, while India’s Sensex was down 0.3% late.

The Asia Dow was off 0.8%. 

Piper Jaffray sales trader Andrew Sullivan in Hong Kong said the weak tone was global, with U.S. futures indicating a softer opening when regular trading gets underway later in the trading day. 

“Expectations for anything dramatic from Jackson Hole [are] obviously receding,” Sullivan wrote in a note Thursday, referring to a speech due to be delivered Friday by Bernanke at an annual gathering of central bankers in Jackson Hole, Wyo. 

The losses in Asia contrasted with mild gains for Wall Street stocks Wednesday after the Federal Reserve’s Beige Book reported gradual U.S. economic expansion. Read more on Beige Book. 

 

Burgundy unwelcoming to buyer As China's interest in wine has soared in recent years, mainland Chinese investors have snapped up several French vineyards. But the sale of a small Burgundy property to a Chinese millionaire is causing a storm in France. 

Perpetual strategist Matthew Sherwood also said investors may be disappointed by Bernanke’s speech.

“It is unlikely that the Fed chairman will announce anything in his talk, and with the U.S. fiscal cliff 

approaching, it would probably be wiser to hold onto whatever policy ammunition he has left, for when the growth battle arrives, instead of firing your weapon before the enemy has arrived,” he said. 

Weighing on Japanese shares Thursday were weaker retail data, showing overall retail sales turning negative in July with a 0.8% drop from a year earlier, the first such fall since November. Sales for the large retailers plunged 4.4%, accelerating a recent downward trend. Read more on Japan retail sales data. 

 

Retailers fell in Tokyo after the data, with J. Front Retailing Co. JP:3086 -2.00% , down 2%; Fast Retailing Co. JP:9983 -1.35%   FRCOF +2.38% , lower by 1.4%; and Seven & I Holdings Co. JP:3382 -2.01%   SVNDF -1.09% , retreating 2%.

Mining and metals

Meanwhile, declining commodity prices helped take steel-mill shares lower in Japan, even in the face of another steep drop in iron-ore prices to just above $90 a tonne.

Nippon Steel Corp. JP:5401 -3.61%   NISTF 0.00%  fell 3.6%, Kobe Steel Ltd. JP:5406 -1.56%   KBSTY -5.97%  lost 1.6% and JFE Holdings Inc. JP:5411 -2.81%   JFEEF -1.41%  retreated by 2.8%. 

The downward spiral for iron-ore prices took a heavier toll on Australian ore miners Thursday, with Fortescue Metals Group Ltd. AU:FMG -1.64%   FSUMF -6.48%  losing 1.6%, and Atlas Iron Ltd. AU:AGO -5.48%   AGODY 0.00%  tumbling 5.5%. 

Mining-services group Boart Longyear Ltd. AU:BLY -36.03%   BLGPY -18.62%  plunged 37% in Sydney after downgrading its outlook as it reported earnings. Read more on Boart Longyear outlook. 

 

Among Chinese resource companies, Jiangxi Copper Co. HK:358 -1.87%   JIXAY -4.83%  gave up 2% after reporting its first-half profit fell almost 40% as copper prices weakened. 

Shipper China Cosco Holdings Co. HK:1919 -3.49%   CICOY -5.05%   fell 1.8% after it reported a wider first-half net loss of 4.87 billion yuan ($767 million) while China Shipping Container Lines Co. HK:2866 -10.80%   CITAF -21.74%  fell 11% after also reporting a wider net loss late Wednesday amid depressed freight rates. See story on Asia trade. 

 

Agricultural Bank of China Ltd. shares HK:1288 -2.69%   ACGBF 0.00%  gave up 2.7% after posting a more than 20% rise in first-half profit. Dow Jones Newswires reported that the bank’s capital position remains the weakest of China’s top four banks. Read more on Agricultural Bank of China earnings. 

 

Other financials tracked lower, with Bank of Communications Co. HK:3328 -3.48%   BKFCF -0.76%  down 3.5%, Industrial & Commercial Bank of China Ltd. HK:1398 -1.87%   IDCBF -2.11%   losing 1.9%, and China Merchants Bank Co. HK:3968 -1.76% CIHHF -6.49%  also retreating 1.8%.

Hong Kong real estate

Hong Kong real estate developers were pressured by concerns the city may unveil new measures to cool the local property market following news of a record $61 million sales of luxury apartments on the Hong Kong Island. 

Analysts said one idea gaining ground for the government to accelerate construction of apartments which can only be sold to local residents. 

Shares of Sino Land Co. HK:83 -4.95%   SNLAF +3.31%  lost 5% after the real-estate developer posted a lower annual net profit, though its underlying profit from operations rose. 

Hang Lung Properties Ltd. HK:101 -2.61%   HLPPF +1.49%  ended down 2.6%, and New World Development Co. HK:17 -2.44%   NDVLF +3.36%  fell 2.4%, while Sung Hung Kai Properties Ltd. HK:16 -3.55%   SUHJY +1.15%  fell 3.6%. 

Among a handful of gainers in Asia, broker action helped support shares of Softbank Corp. JP:9984 +1.58%   SFTBF -0.82% , which advanced 1.6% in Tokyo after Nomura raised its target price for the shares. 

Sarah Turner is MarketWatch's bureau chief in Sydney. Chris Oliver is MarketWatch's Asia bureau chief, based in Hong Kong.