By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Asian markets were jerked lower early
Monday as a sharp rebound in the yen, a commodity-price slump and
caution ahead of a slew of Chinese economic data pulled investors
to the sidelines.
The Shanghai Composite traded 0.5% lower, and Hong Kong's Hang
Seng Index gave up 0.8% ahead of the release of China's gross
domestic product for the first quarter of 2013. Official monthly
data on retail sales and industrial production, among others, were
also scheduled.
Australia's S&P/ASX 200 lost 0.7%, and South Korea's Kospi
shed 0.5%.
Japan's Nikkei Stock Average dropped 0.9% to 13,357.88.
The U.S. Treasury on Friday warned Japan not to actively weaken
its currency. The yen rebounded sharply after the remarks, with the
U.S. dollar (USDJPY) dropping below Yen98.50 on Monday, versus
Yen98.92 in the U.S. late on Friday and Yen99.73 just ahead of the
Tokyo market's Friday open.
"Currency wars are back on the agenda as U.S. and Europe 'remind
Japan of its pledge not to drive down its currency,'" said Evan
Lucas a market strategist at IG Markets. "The inverse correlation
between the yen/Nikkei [Average] is almost ironclad, and will add
to the downward pressure regionally."
In Tokyo trading, Honda Motor Co. (HMC) gave up 1%, Hitachi Ltd.
also shed 1% and Bridgestone Corp. (BRDCY) declined 1.6% on the
local currency's rise.
On the upside, a report Saturday in the Nikkei business daily
that Sharp Corp. (SHCAF) would unload its more than 9% stake in
Pioneer Corp. (6773.TO) helped lift both firms' shares
significantly, with Pioneer stock jumping 8.6%, and Sharp soaring
18.5%.
Commodity stocks in the region were hit particularly hard Monday
after gold futures slumped to hit their lowest level in 21 months
in the U.S. on Friday, accompanied by declines in other
commodities.
BHP Billiton Ltd. (BHP) slid 2.3%, and Newcrest Mining Ltd.
(NCMGY) plunged 6.8% in Sydney.
In Hong Kong, Cnooc Ltd. (CEO) lost 3.1%, and Zhaojin Mining
Industry Co. (1818.HK) gave up 6.8%, while in Shanghai, Zijin
Mining Industry Co. (601899.SH) fell 4.4%, and Jiangxi Copper Co.
(JIXAY) skidded 4.2%.
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