Asian markets were mixed yesterday with Tokyo slumping 3.22% on profit-taking and a stronger yen while comments by President Xi Jinping fuelled concerns about the slowing Chinese economy.
The Nikkei 225 index lost 469.80 points to 14,142.65, following a rollercoaster session last week that saw the benchmark index plunge more than 7% on Thursday.
The Nikkei had been making steady gains until Thursday when the benchmark index plummeted 7.3% after disappointing data out of China stoked fears about the world’s second-largest economy, a major trade partner with Japan.
Seoul closed 0.33% higher at 1,979.97 points while Sydney dropped 0.47% to end at 4,959.9.
Hong Kong added 0.30% to 22,686.05 while Shanghai rose 0.20% to close at 2,293.08, but gains were capped by concerns over the domestic economy.
Comments Friday by Chinese President Xi that his country would not sacrifice the environment for temporary economic growth added to concerns about the weakness of China’s recovery following weak manufacturing data.
Figures from HSBC’s preliminary purchasing managers’ index (PMI) for China released Thursday fell to a seven-month low of 49.6 in May, putting it below the 50 mark and indicating contraction.
Xi’s comments on possible slower growth in the world’s top energy consumer also hit oil prices in Asian trade Monday.
New York’s main contract, West Texas Intermediate light sweet crude for delivery in July, dropped 54¢ to $93.61 a barrel in the afternoon and Brent North Sea crude for July delivery shed 19¢ to $102.45.
On forex markets, the yen added to its gains in Asia Monday but dealers said the Japanese unit’s decline was still on track.
The dollar fetched ¥101.04 in Tokyo trade, down from ¥101.14 in New York Friday and ¥102.33 in Tokyo on Friday morning.
The euro also weakened against the Japanese currency at ¥130.60 from ¥130.82 on Friday, while it bought $1.2926 from $1.2936.
Gold was at $1,394.20 at 1049 GMT Monday from $1,386.10 late Friday.
In other markets, Singapore ended flat, falling 1.87 points to 3,391.30; Kuala Lumpur lost 5.93 points, or 0.33%, to 1767.13; Bangkok fell 14.36 points, or 0.89%, to 1,593.10; Jakarta shed 69.96 points, or 1.36%, to 5,085.14; Manila retreated 171.40 points, or 2.36%, to 7097.51; Taipei gained 70.32 points, or 0.86%, to 8,280.10; and Wellington fell 48.04 points, or 1.06%, to 4,478.20.