By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Asian markets slipped Wednesday ahead
of key manufacturing data from China, with Japanese stocks weighed
by a stronger yen and Australian shares pulling back from near
five-year highs as investors locked in recent gains in banks.
Japan's Nikkei Stock Average fell 0.3%, and the broader Topix
index lost 0.5%. Australia's S&P/ASX 200 fell 0.5%, retreating
a day after the benchmark ended at its highest level since June
2008.
Trading volumes were thin, with several regional markets closed
for Labor Day or other local holidays -- including in China, Hong
Kong, India, South Korea, Taiwan and Singapore. Investors were also
cautious ahead key central-bank meetings this week.
"It certainly feels like there is a 'calm before the storm'
effect at the moment. The [European Central Bank] and the [Federal
Open Market Committee] will both sit down this week and nut out
cash rates and policy positions alike, and this will drive the May
markets," said IG Markets strategist Evan Lucas.
The FOMC was due to announce its monetary policy decision later
Wednesday, while the ECB was widely expected to cut its benchmark
interest rate by a quarter-point to a record low of 0.5%.
The drops in Tokyo and Sydney came even as the S&P 500 Index
(SPX) ended at a record level for a second straight day overnight
in the U.S, aided by corporate earnings.
Among the major movers in Tokyo, shares of Sharp Corp. (SHCAY)
tumbled 4.1% after the Nikkei newspaper reported the company may
suffer a bigger net loss than it had forecast for the last
financial year ended March 31.
Several other exporters also retreated as the U.S. dollar
(USDJPY) slipped further against the yen to Yen97.13 from the
Yen97.48 level seen late Tuesday in U.S. trading.
Shares of Nissan Motor Co. (NSANY) lost 1.5% and Canon Inc.
(CAJ) gave up 1.3%.
Airline stocks retreated on worries about the financial impact
from the grounding of the Boeing Dreamliner jet fleet, with Japan
Airlines Co. losing 4.8%, and ANA Holdings Co. (ALNPY) shedding
1.4%.
The drop came, even as ANA reported a 53% jump in annual profits
Tuesday, while Japan Airlines posted a better-than-forecast annual
profit of Yen171.67 billion ($1.767 billion) after nearly three
years in bankruptcy.
Daihatsu Motor Co. (7262.TO) shed 0.5% following a Nikkei
newspaper report that the company has missed out on sales of 17,000
units of a new compact car due to delays by the Indonesian
government.
In Sydney, meanwhile, banks retreated a day after strong results
from Australia & New Zealand Banking Group Ltd. (ANZBY) pushed
the market sharply higher.
ANZ shares were down 0.4%, while Commonwealth Bank of Australia
(CBAUY) gave up 1.1%.
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