CNBC: Asian markets slump as China tightens bank lending
Asian stocks finished lower on Tuesday as fears of further clampdowns on lending in China and a U.S. plan to freeze domestic spending sparked worries about the outlook for global growth.
Japan's Nikkei 225 Average fell 1.8% to a five-week closing low, with exporters hurt as the yen rose broadly after China implemented a previously ordered increase in reserve requirements for some banks. Sony lost 4.8% and TDK Corp slid 3.5%.
The market showed little reaction to the Bank of Japan's decision to stick to its cautious view on the economy. The central bank predicted only a slightly slower annual pace of price falls for the year beginning in April due largely to rising crude oil costs.
KDDI, Japan's No.2 telecom firm, tumbled 8.6% after it said it would pay $4 billion for a controlling stake in Jupiter Telecommunications, the country's biggest cable TV firm. Jupiter Telecommunications, known as J:Com, fell 6.6% after jumping 14.4% the previous day.
Seoul shares gave up earlier gains to close 2% lower, led by key exporters including Hynix, with news of China implementing an increase in reserve requirements for banks pressuring markets.
Shares in Hynix Semiconductor tumbled 9.4% as worries that the world's No. 2 memory chip maker may face difficulties finding a buyer for a majority stake in the firm mounted, analysts said.
Key exporters also declined following their outperformance in recent sessions, with Samsung Electronics, the world's No.1 memory chip maker, dipping 3.2% and Hyundai Motor, South Korea's top automaker, shedding 2.3%.
But shares in Lotte Shopping rose 2.7% after parent Lotte Group said late on Monday it would take over the convenience store chain Buy The Way from private equity firm Unitas Capital for about $235 million, in a move to challenge sector leader FamilyMart.
China's key stock index sank 2.4% to its lowest close in nearly three months, with property shares sliding on signs of tightening liquidity, as several banks that were previously ordered to raise their reserve ratios implemented those increases on Tuesday.
Hong Kong stocks also fell on tightening fears, with the benchmark Hang Seng down 2.4%.
In Southeast Asia, property stocks were in the spotlight after Keppel Land handed in a stronger-than-expected full year report card. The stock gave up 2.3% despite the news, in line with the broader market decline. The Straits Times Index lost 2.5% while the KL Composite shed 1.1%.
Australia markets are closed for Australia Day public holiday.
