(RTTNews) - Asian stocks witnessed broad-based selling on Tuesday on concerns the recent rally in global equities has outpaced the outlook for earnings and the global economy. Energy and metal stocks bore the brunt of the selling pressure hurt by weakening commodity prices.

Exporters came under selling pressure on fears U.S. lawmakers may let a federal home buyer tax credit expire. Financial stocks fell tracking weakness among their U.S. peers overnight. Investors awaited U.S. GDP data due out later this week for further cues about the near-term direction of the markets.

The Japanese market fell the most in three weeks, as financial stocks fell on weakness among their U.S. peers and resource stocks tracked falling commodity prices.

The benchmark Nikkei 225 closed at 10,212, down 150 points or 1.45% and the broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 15 points or 1.37% to 895.

Shipping stocks slumped after three major shippers reported poor September-quarter earnings and slashed its profit forecasts. Kawasaki Kisen tumbled 6.37%, Nippon Yusen K. K fell 2.53% and Mitsui O.S. K. Lines declined 2.48%.

Among exporters, Canon and Honda Motor fell by around 2% each ahead of their interim earnings announcements.

Pacific Metals plunged over 6% after Goldman Sachs Group downgraded the stock to “sell.” Chuo Mitsui Trust Holdings rallied 8% on speculation it will merge with Sumitomo Trust & Banking Co.

China’s benchmark Shanghai Composite Index, which covers both A shares and B shares on the Shanghai Stock Exchange, fell 2.83% or 88 points to 3,021 after moving in a range of 3,086-3,020.

Market heavyweight PetroChina fell 2.55%, oil refiner Sinopec shed nearly 4%, Bank of China declined 3% and securities firm Haitong Securities fell over 4%.Coal stocks and firms manufacturing nonferrous metals also ended considerably lower, while select bio-pharmaceutical stocks witnessed some buying support.

Hong Kong’s benchmark Hang Seng index closed at 22,170, down 420 points or 1.86%, the biggest one-day loss in three weeks. Realty stocks bore the brunt of the selling pressure after the central bank talked about curbing a faster rise in property prices. The market was shut on Monday for a public holiday.

On the economic front, the Census and Statistics Department said in a report that Hong Kong’s visible trade deficit increased to HK$ 29.1 billion in September from HK$ 21.85 billion in the prior month. The shortfall was also larger than the HK$ 16.02 billion deficit seen in the same period of the prior year.

South Korea’s KOSPI fell 8 points or 0.46% to 1,650 as institutional investors offloaded stocks in the technology and banking sectors. Samsung Electronics fell 1.46% and steel maker POSCO shed 0.73%, while LG Electronics advanced 3.51% and KB Financial, the holding firm of Kookmin Bank, edged up 0.16%.

Shipbuilders fell on reports the Taiwanese dry-bulk shipping firm TMT may cancel ship orders. Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries fell by around 3% each.

In economic news, consumer confidence in South Korea climbed to its highest levels in more than seven years in October, as the economy continued to post growth, the Bank of Korea said Tuesday.

The consumer confidence index climbed to 117 in October from 114 in both August and September. This is the highest reading since the first quarter of 2002, when the index stood at 117.

The Australian market closed deep in the red on profit taking, dragged down by resources, energy and metal stocks. Exporters fell after the Aussie dollar inched up against the U.S. dollar.

The benchmark S&P/ASX200 closed at 4,753, down 77 points or 1.59% and the broader All Ordinaries index fell by 78 points or 1.61% to 4,755.

Big miner BHP Billiton fell 2.21% and its rival Rio Tinto eased 2.82%.Woodside Petroleum gave off 2.46%, Oil Search ended down 1.15% and Santos slipped 1.10%.

Banking stocks closed well off their day’s lows ahead of their earnings reporting season. National Australia Bank edged down 0.20% ahead of its earnings announcement on Wednesday, ANZ slipped 0.21%, Commonwealth Bank declined 1.48% and Westpac Banking fell 1.09%.

Investment bank Macquarie Group ended down nearly 2% after it bought Canadian wealth management business, Blackmont Capital Inc, for $C93.3 million.

Building materials group James Hardie Industries, which derives most of its earnings from overseas markets, fell over 4% on reports a U.S. home-buyer tax credit will be phased out. Property trust ING Industrial Fund was in a trading halt to facilitate a capital raising.

The New Zealand market fell, dragged down by heavyweights amid weak overseas cues. Investors avoided taking fresh positions ahead of Reserve Bank of New Zealand’s official cash rate review meeting on Thursday.

The benchmark NZX-50 closed at 3,192, down 22 points or 0.7% from Friday’s close. The market was closed on Monday for the Labor Day holiday.

Top stock Telecom fell 0.4%, construction firm Fletcher Building eased 1.5%, and Contact Energy ended down 0.64%.

However, exporter Sanford edged up 0.8% and medical devices maker Fisher & Paykel Healthcare advanced 1.7% after the NZ dollar retreated from its recent highs.

National carrier Air New Zealand rose 1.5% after it had signed a code-sharing agreement with South African Airways. Casino operator Sky City rose 1.2% ahead of its annual general meeting Friday. Port of Tauranga rose 0.43% on moderate volumes following its annual meeting last week.

The Indian market fell sharply even as the RBI maintained its accommodative monetary policy stance. The benchmark Sensex is now trading near the day’s lows at 16,356, down 2.30%.

On Wall Street, stocks saw steep losses on Monday amid a considerable pullback in the financial and commodity sectors. Some negative analyst comments about the financial sector also hurt sentiment. The Dow closed with a loss of 1.05%, the Nasdaq declined 0.59% and the S&P 500 shed 1.17%.

Crude oil price fell sharply from a yearly high on Monday as global equities fell, raising concerns over the economic recovery. A stronger U.S. dollar also lessened oil’s hedge value. Light sweet crude for December delivery fell to $78.68, down $1.82 on the session. However, in Asian trading on Tuesday, crude oil price held steady at below $79 a barrel.

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Posted in Categories: Australia, Canada, Japan, New Zealand, Releases, Stocks, USA.

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