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Asian Stocks Fall On China Growth Worries(Alliance News Via Acquire Media NewsEdge) CANBERA (Alliance News) - Asian stocks fell broadly on Monday amid concerns about a slowing Chinese economy after Chinese Finance Minister Lou Jiwei said the country will not make major policy changes despite downward pressure on economic growth. The macro policy will focus on delivering comprehensive growth targets such as stable employment and inflation, and will not be distracted by changes in certain economic indicators, Lou said as investors look ahead to Chinese manufacturing data on Tuesday. A lackluster close on Wall Street Friday, falling commodity prices and the G20's final communique warning of low interest rates contributing to rise in market risk also kept investor sentiment extremely fragile. China's Shanghai Composite index fell 1.7% to 2,289.87 on growth worries as Lou's comments damped hopes of aggressive policy easing. Hong Kong's Hang Seng index dropped 1.44% to 23,955.49 on fears Chinese manufacturing data due out tomorrow could indicate further weakness in the mainland economy. Japanese shares fell on profit taking after closing last week at a seven-year high. The benchmark Nikkei average fell 115.27 points or 0.71% to 16,205.90 after rising to its highest level in nearly seven years last week. The broader Topix index slipped 0.1% from a six-year closing high to finish at 1,330.88. Telecoms giant Softbank Corp. plummeted 6.1% on profit taking following the listing of Alibaba Group Holding shares in New York on Friday. Among other prominent decliners, Dainippon Screen Manufacturing, Pacific Metals, Nippon Sheet Glass Company, Kawasaki Kisen Kaisha and Mitsumi Electric Company fell 2-4%. Mitsubishi Materials rallied 2.6 perc3nt on speculation the company is nearing a deal to buy Hitachi Tool Engineering. Shares of Mitsubishi Motors soared over 4%. The Japanese automaker and Fiat Group Automobile have signed a memorandum of understanding to develop and manufacture a mid-size pick-up truck. Australian shares tumbled, dragged down mining stocks as spot iron ore prices hit a fresh five-year low on concerns over sluggish demand in top consumer China. The benchmark S&P/ASX 200 index fell 70.1 points or 1.3% to finish at 5,363.0 after dropping to a low of 5,351.1 earlier in the session. Big miner BHP Billiton lost 1.8%, Rio Tinto declined 2.5% and smaller rival Fortescue Metals Group plunged 4.8%. Banking stocks also fell across the board, with Commonwealth, ANZ, Westpac and NAB ending down between 1.8% and 2.4%. Energy stocks Origin Energy, Santos, Woodside Petroleum and Oil Search fell between 0.4% and 0.7% as crude oil futures fell further in Asian trading. ALS slumped 17.2% after downgrading its first-half profit guidance. Miner and steel maker Arrium rallied 4% on bargain hunting after tumbling 42% last week. Seoul shares fell, with tech stocks pacing the declines amid dearth of fresh incentives. The benchmark Kospi average slid 14.55 points or 0.71% to finish at 2,039.27. Samsung Electronics dropped 1.8%, SK Hynix shed 1.7% and LG Electronics retreated 2%. Hyundai Motor, South Korea's largest carmaker, rose 0.3% after sharp losses in the previous two sessions. New Zealand stocks rose, with energy stocks rallying sharply after the nation's Prime Minister John Key returned for a third term in office with an emphatic victory in the general elections. The benchmark NZX 50 index jumped 55 points or 1.06% to close at 5,236.29. MightyRiverPower shares soared 7.5% to a 17-month high on easing fears over regulation of power prices, Meridian Energy rallied 4.8% to a record high, Contact Energy jumped 4.5%, TrustPower shares advanced 2.9% and Genesis Energy closed 1.6% higher, paring earlier gains. In economic releases, consumer confidence in New Zealand fell in the third quarter of 2014, the latest survey from Westpac Bank revealed, with an index score of 116.7, down from 121.2 in the second quarter. Elsewhere, Indonesia's Jakarta Composite index was down 0.3%, Malaysia's KLSE Composite was declining 0.2%, Singapore's Straits Times index was down 0.1% and the Taiwan Weighted average fell 1.1%, while India's Sensex was up 0.4%. Taiwan's unemployment rate decreased marginally to 3.94% in August from 3.95% in July as the economy continued to improve, official data showed. On Wall Street, stocks failed to sustain an initial upward move on Friday despite Chinese e-commerce giant Alibaba making its big debut in the market. Traders also digested disappointing quarterly results from Oracle and mulled over the global economic impact of the Scottish vote in favor of independence. While the Dow inched up 0.1% to end the session at a fresh record closing high, the S&P 500 edged down marginally and the tech-heavy Nasdaq slid 0.3%. Copyright RTT News/dpa-AFX |