A general aerial view shows the Hong Kong skyline yesterday. Shares in Hong Kong declined for the second straight day yesterday, weighed down by real estate and financials, as investors grew concerned that both Beijing and Hong Kong would launch more curbs to cool rising property prices.
Asian markets were mostly lower yesterday as Tokyo slipped following an uptick in the yen while Chinese shares fell on fears Beijing may act to rein in soaring property prices.
With US markets closed for the Presidents’ Day public holiday, there were no drivers from New York.
Tokyo’s benchmark Nikkei 225 slipped 0.31% to end at 11,372.34 on profit-taking and as the yen rose after Japan’s finance minister said the central bank’s independence was safe for now.
Seoul added 0.2% to 1,985.83 and Sydney ended 18.5 points, or 0.37%, higher at 5,081.9.
Hong Kong lost 1.02%, or 238.03 points, to 23,143.91, while Shanghai shares closed down 1.6%, or 38.65 points, at 2,382.91 amid fears Beijing may tighten regulations in the sector to try to control home prices.
“Negative factors, including rebounding property prices and inflation pressures, are gaining momentum,” Tebon Securities analyst Zhang Haidong told Dow Jones Newswires.
In Tokyo, Finance Minister Taro Aso moved to reassure on the independence of the Bank of Japan and also said the government had “no intention” of asking the central bank to buy foreign bonds as part of its monetary easing policy.
The yen rose after Aso’s comments took the edge off Prime Minister Shinzo Abe’s warning Monday that he would consider changing the law to take control of the bank if it could not achieve a new 2% inflation target.
“We are not thinking about a law change at the moment,” Aso said at a regular news conference yesterday.
Abe’s remarks had added to selling pressure on the yen, which was already weakened by the Group of 20’s decision not to label Tokyo a currency manipulator over its recent monetary easing policy.
In foreign exchange trade, the dollar slipped to ¥93.67 in Tokyo from ¥93.95 in London on Monday, while the euro was weaker at ¥125.02 against ¥125.43.
The euro was also at $1.3348 against $1.3353.
“The pair (dollar against the yen) fell on Mr Aso’s remarks on foreign bond purchases,” said a senior dealer at a major Japanese trust bank.
Oil prices turned lower, with New York’s main contract, light sweet crude for delivery in March falling four cents to $95.53 a barrel in the afternoon.
Brent North Sea crude for delivery in April slipped 27¢ to $117.42.
Gold was at $1,612.50 at 1050 GMT, compared with $1,610.52 late Monday.
In other markets, Singapore closed 0.23%, or 7.63 points, higher at 3,295.77; Bangkok added 0.58%, or 8.78 points, to 1,532.07; Kuala Lumpur lost 0.36%, or 5.86 points, to 1,615.07; Jakarta slipped 9.98 points, or 0.22%, to 4,602.06; Taipei added 0.22%, or 17.35 points, to 7,960.88; and Wellington ended 0.71%, or 29.73 points, higher at 4,244.21.