| Foreign Market Wrap |
Asian markets ended mostly lower Tuesday, with Chinese stock investors locking in profits after the country's banking regulator warned banks about their capital positions, raising fears that lenders may have to sell shares to raise capital.
The Shanghai 300 Composite Index tumbled 117.43 points, or 3.2%, to 3,548.08.
Chinese banking stocks dropped in Hong Kong and Shanghai after the mainland banking regulator warned banks to meet industry capital requirements or face sanctions.
Shares of Bank of China lost 4% and China Construction Bank shed 3.4% in Hong Kong; in Shanghai, they fell 2.3% and 2.9%, respectively.
Elsewhere, in Tokyo, the Nikkei 225 Index returned to work after a long weekend, and tailed off 96.10 points, or 1%, to 9,401.58.
The Tokyo market "seems to be left behind. Worries over deflation and uncertainty in economic policies will continue to put off investors," said Mizuho Securities market analyst Yukio Takahashi.
Earlier in the day, Japanese Finance Minister Hirohisa Fujii said deflation was primarily a concern for monetary policy, rather than fiscal policy. Also, data due later in the week was forecast to show Japan's core consumer-price index fell 2.2% year-to-year in October, after a 2.3% decline the previous month.
In Hong Kong, the Hang Seng Index gave back 343.25 points, or 1.5%, to 22,423.14, its fifth drop in six sessions.
Financial shares were hit hard, with Takefuji ending 6.8% lower after Moody's downgraded its ratings on Friday, while fellow consumer-finance company Aiful fell 4.8%. Persistent worries about capital-raising hurt banks, with Mizuho Financial Group sliding 2.5% and Sumitomo Mitsui Financial Group shedding 4.4%.
Japan Airlines touched an all-time low during the session after trading house Mitsui sold its entire stake in the company amid uncertainty over the airline's restructuring plans. The stock ended 8.4% lower in strong volume.
The South Korean market declined on concerns about expensive valuations after strong gains. Samsung Electronics slipped 2.2% and LG Electronics dropped 1.9% amid uncertainty over the U.S. year-end shopping season
Elsewhere:
Taiwan’s Taiex index bucked the trend and gained 27.41 points, or 0.4%, to 7,714.56
Singapore’s Straits Times index was down 17.90 points, or 0.6%, to 2,779.98
Korea’s Kospi index eased 12.63 points, or 0.8%, to 1,606.42
New Zealand’s NZX Index finished 5.36 points, or 0.2%, lower to 3,107.61
Australia’s S&P/ASX 200 lost 32 points, or 0.7%, to 4,685.00
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