China liquidity fears weigh on Asian markets

Asian markets were mostly down Wednesday as concerns over liquidity in the Chinese market weighed on sentiment despite hopes for global recovery ahead of a rate decision in the United States.
Shanghai lost 1.89 percent on worries that an upcoming Nasdaq-style board may divert funds from the main index.
Hong Kong lost 0.49 percent and Seoul 0.43 percent.
However Sydney gained 1.51 percent, led by financial and resources stocks and stronger commodities prices.
Financial markets in Indonesia and Japan were closed due to public holidays.
The falls in Asia came despite Wall Street's 0.52 percent climb to a 2009 high which on upbeat sentiment before the Federal Reserve announces its rate decision and gives an idea of the direction of the US economy.
HONG KONG: Down 0.49 percent. The Hang Seng Index finished down 105.62 points at 21,595.52.
Steven Leung, director of institutional sales at UOB Kay Hian, said: "Investors in mainland China are keen on subscribing to IPOs, that's why the A-share market is falling these days. That will also weigh on the Hong Kong market."
Bank of Communications fell 2.5 percent to 9.93 Hong Kong dollars and Bank of China was down 1.2 percent at 4.28.
Debut stock Sinopharm bucked the trend and ended 16 percent higher at 18.52. Turnover for the stock represented 33 percent of the market total.
Geely Automobile surged 19 percent to 2.13, its highest closing level since it was listed in 2004. The carmaker confirmed that a Goldman Sachs-managed private equity fund plans to invest in the firm.
SYDNEY: Up 1.51 percent. The S&P/ASX 200 rose 70.4 points to 4,734.1.
"The bulk of points came from those stocks leveraged to the global economic recovery and also Asia," said IG Markets analyst Ben Potter.
Rio Tinto advanced 2.29 percent to 61.74 and BHP Billiton grew 0.92 percent to 38.35.
Santos rose 0.46 percent to 15.15.
Commonwealth Bank shares hit a 19-month high of 50 dollars after putting on 2.31 percent.
National Australia Bank lifted 2.68 percent to 30.26, Westpac gained 1.36 percent to 25.30 and ANZ Banking Group 1.07 percent to 23.58.
SHANGHAI: Down 1.89 percent. The Shanghai Composite Index, which covers both A and B shares, fell 54.83 points to 2,842.72.
Investor fears that the creation of a new market may divert funds from the main index brought the market lower, dealers said.
"A large number of new accounts have opened recently for trading (on the Growth Enterprise Market), so we expect more funds will flow into the new startup board," said Yu Zuojie, an analyst at Shanghai Securities.
Analysts also said investors were waiting for results from China-US discussions on their trade dispute over tires at the G20 summit.
Coal producers led the decline on concerns over weak prices and the sector's valuation following sharp gains this year.
China Shenhua Energy, which was up 79.7 percent from the start of this year, fell 3.9 percent to 30.70 yuan.
SEOUL: Down 0.43 percent. The KOSPI lost 7.41 points to finish at 1,711.47.
Semiconductor maker Hynix declined 5.4 percent to 20,850 won after South Korean conglomerate Hyosung said Tuesday it has submitted the only bid to buy a major stake in it.
Hyosung plunged by the daily limit of 15 percent to 84,400.
KB Financial Group rose 1.5 percent to 61,400 won following news its chief executive Hwang Young-Key will resign to take responsibility for derivative losses during his tenure as the head of Woori Finance Holdings.
Analysts said Hwang's resignation removes uncertainty over his future at the banking group following his censure by regulators.
TAIPEI: Down 1.24 percent. The weighted index fell 92.27 points to 7,376.76.
"It's time for the market to take a breather after such a big rally," said David Li, sales trader at Daiwa Securities SMBC-Cathay.
Taiwan stocks have fallen for the past three days after rising 2.58 percent last week.
Li said investors were also concerned about a possible fallout with China due to pro-independence groups' plans to invite exiled Uighur leader Rebiya Kadeer to the island.
Financials shed 2.18 percent, with Cathay Financial down 2.23 percent to 52.50 dollars.
Electronics lost 0.69 percent. Taiwan Semiconductor Manufacturing Co. was 0.32 percent lower at 62.30.
SINGAPORE: Flat. The Straits Times Index edged up 0.31 points or 0.01 percent to 2,685.94.
There were few fresh leads to spark buying interest ahead of the conclusion of the Fed meeting, dealers said.
Singapore Airlines was up 18 cents to 13.58 dollars while Singapore Telecommunications eased one cent to 3.17 dollars.
Property developer CapitaLand dropped five cents to 3.68 dollars and Keppel Land put on two cents to 2.68 dollars.
KUALA LUMPUR: Down 0.17 percent. The Kuala Lumpur Composite Index lost 2.13 points to 1,219.07.
"The market failed to hold on to early gains. Market participants have yet to return in full force as many are still on extended vacation," a dealer said. The bourse was closed Monday and Tuesday for a public holiday.
Banking group CIMB lost 0.7 percent to 11.24 ringgit and construction company Gamuda was down 1.8 percent at 3.29.
Gaming operator Genting added 1.5 percent to 7.31.
BANGKOK: Up 0.85 percent. The Stock Exchange of Thailand gained 6.15 points to close at 730.52.
MANILA: Up 2.07 percent. The composite index gained 57.73 points to 2,842.51.
"It's a technical rebound from oversold levels," said Tisha Alizer of DA Market Securities Inc.
Philippine Long Distance Telephone Co gained 2.3 percent to 2,405 pesos while Metro Pacific Investments Corp. rose 1.54 percent to 3.30 pesos.
Conglomerate Ayala Corp. bucked the trend, falling 0.8 percent to 302.50 pesos.
WELLINGTON: Up 0.13 percent. The NZX-50 gained 3.95 points to 3,147.91.
News that New Zealand's gross domestic product rose 0.1 percent in the June quarter, snapping five quarters of contraction, boosted Fletcher Building which rose eight cents to 8.49 dollars.
But of the other leading stocks, Telecom was unchanged at 2.61 and Contact Energy fell eight cents to 5.73.
Air New Zealand was four cents ahead at 1.28 after announcing it had negotiated turbulent economic times better than other airlines in the region.
SkyTV gained 10 cents to 4.68 after Television New Zealand said it was negotiating with the firm to take over the broadcasting rights to next year's Commonwealth Games in India.
MUMBAI: Down 0.99 percent. The 30-share Sensex fell 166.93 points to 16,719.5.