Asian Stocks Fall as Topix Retreats, Australian Banks Tumble

Updated on
  • Shanghai Composite little changed after five-day selloff
  • MSCI Asia Pacific Index drops after rally to two-year high

Asian shares slid from a 23-month high as Japanese equities retreated after Monday’s rally and banking stocks pulled down Australian shares. Chinese stocks halted a five-day selloff.

MSCI AC Asia Pacific Index fell 0.5 percent as of 5:09 p.m. Hong Kong time. Japan’s Topix retreated 0.3 percent after reaching the highest level since December 2015 on Monday. Australia’s big four banks fell on media reports the government is set to impose a levy on lenders in Tuesday’s budget, and the nation’s largest bank reported weaker-than-expected earnings. China’s Shanghai Composite Index closed less than 0.1 percent higher, reversing declines amid the government’s effort to clean up markets and cut leverage.

Asian investors are awaiting earnings from some of Japan’s biggest companies. Toyota Motor Corp., and SoftBank Group Corp. are among those releasing results and outlooks this week. Shares of China major power companies jumped as the country is said to create three power giants through mergers of eight coal-fired nuclear generators.

Read more details on How China may merge major power companies


  • Topix -0.3%, Nikkei 225 -0.3% 
    • Market breadth measured by net advancers "very healthy" during recent rally that began mid-April compared to rallies seen in the past year, Sanford C. Bernstein sales trader Ayush Nagaraj writes in email
      • High reading yesterday signaled a brief pullback, but theoretically it also signals further upside in Topix following the correction: Nagaraj 
      • NOTE: Topix had 1,872 advancers, 106 decliners yesterday; 915 advancers, 947 decliners today
  • Hang Seng Index +1.3%, Hang Seng China Enterprises Index +1.5%
    • Country Garden Jan.-April property contract sales 204.2b yuan
    • China said to mull 3 mega power firms in $855b reshuffle
      • Datang International Power +16% in Hong Kong, Huadian Power +7.3%, Huaneng Power +6.7%
  • Australia’s S&P/ASX 200 -0.5%; S&P/NZX 50 -0.2%
  • Straits Times Index +0.4%
    • OCBC posts surprise 14% profit increase on wealth, insurance
  • Kuala Lumpur Composite Index -0.1%, Jakarta Composite Index -0.2%, Thailand’s SET Index -0.5%
  • Sensex Index little changed
    • Trades near record as property stocks advance on government policy aimed at increasing housing investment
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