Asian Stocks Fall as China Shares Drop; Japan Gains on Earnings

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Asian stocks slid as Chinese shares fell for the fourth time in five days, while indexes in Japan and elsewhere in the region gained as investors weighed earnings.

Technology and phone stocks led declines in Shanghai, with Leshi Internet Information & Technology (Beijing) Co. and ZTE Corp. losing more than 2 percent. Fast Retailing Co. slid 4.7 percent after the Japan retailer reported sales fell. Taiyo Nippon Sanso Corp. surged 14 percent in Tokyo as the maker of industrial gases lifted its profit forecast. Medical device maker Terumo jumped 13 percent in Tokyo after saying profit jumped and it will buy back shares.

The MSCI Asia Pacific Index slipped 0.1 percent to 141.45 as of 4:01 p.m. in Hong Kong. The Shanghai Composite Index declined 1.7 percent after swinging between gains and losses throughout the day, as turnover waned and concern grew that government intervention is driving away investors.

“Measures by the government to restrict selling and the de-leveraging by margin traders have contributed to decreasing demand for stocks,” Dai Ming, a fund manager at Hengsheng Asset Management Co., said in Shanghai. “Confidence will take a while to fully recover.”

Japan’s Topix index gained 0.4 percent. South Korea’s Kospi added 0.1 percent and Taiwan’s Taiex Index rose 0.4 percent. Australia’s S&P/ASX 200 Index declined 0.4 percent and New Zealand’s NZX 50 Index rose 0.1 percent.

Hong Kong’s Hang Seng Index gained 0.4 percent and the Hang Seng China Enterprises Index rose 0.5 percent.

Trading Slows

The value of shares traded on the Shanghai Composite index has fallen 65 percent from this year’s high in June as trading halts, regulatory measures to curb bearish transactions and a suspension of initial public offerings deters investors. A total of 515 mainland companies, or 18 percent of all listings, remain halted from trading, according to data compiled by Bloomberg.

E-mini futures on the S&P 500 added 0.2 percent after the underlying gauge slipped 0.2 percent on Tuesday.

U.S. payrolls probably rose by 225,000 in July, according to the median estimate of 83 analysts surveyed by Bloomberg News ahead of Friday’s government jobs report. That compares with 223,000 in June. The private ADP National Employment Report is due Wednesday.

Traders are pricing in a 48 percent probability that the Fed will raise U.S. interest rates in September. That compares with a 38 percent chance earlier Tuesday.

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