2013.08.0707:00:32UTC+00Asia stocks down; yen hits Japan

Asian stock markets exchanged sharply down on Wednesday trading action after overnight declines in the U.S. on financial policy concerns, with Japan taking an especially heavy slaps from advances for the yen.

The blue-chip Nikkei Stock Average transact 2.8% lesser in Tokyo, continuing its pullback from the morning session, while Australia’s S&P/ASX 200 dive 1.5% down, and South Korea’s Kospi relinquished 1.1%.

Over in China, Hong Kong’s Hang Seng Index missed 0.3%, while the Shanghai Composite Index swung back and forth of advances, managing a 0.3% increase by the midday break.

The moves came amid seasonally thin trading, with Kim Eng Securities strategist Andrew Sullivan predicting “light volumes to remain,” noting some market holidays this week in Southeast Asia for the end of Ramadan likely to make volumes “lighter still.”

“Summer doldrums seem to be upon us,” he said.

The weak pace in Asia followed a second day of declines for U.S. benchmarks, with the S&P 500 sliding back under the 1,700 level after ending the day down 0.6%.

Concerns about the Federal Reserve’s stimulus outlook helped drive the drop on Wall Street, after Chicago Fed President Charles Evans said he expects the central bank to begin tapering its asset-purchase program by the end of the year.

Japanese equities took an additional strike from the yen, as the U.S. dollar backed down as low as ¥97.06, according to FactSet, after having exchanged above the ¥98 level just over 24 hours earlier.

The greater yen smacked exporters, which have benefitted from a weaker currency. Among them, Sony Corp. gave up 4%, Tokyo Electron Ltd. slumped 5.8%, and Olympus Corp. and Sumitomo Metal Metal Mining Co. declined 4.8% each.

Likewise, shares of Suntory Beverage & Food Ltd., which debuted in Tokyo last month, fell 2.5% of their worth despite an almost doubling of its fiscal first-half profit.

Audio-tech firm Pioneer Corp. plunged down 7.7% after reporting a wider quarterly loss and trimming down its fiscal-year profit outlook by more than 90%.

But on the upside, energy major Showa Shell Sekiyu K.K. skyrocketed 5.1% after increasing its own fiscal-year profit outlook by 85%.

In Sydney, the key mining and financial sectors were both heading down, with Newcrest Mining Ltd. dipping 4.5% after benchmark Comex gold futures lost their hold on the $1,300-an-ounce level in Tuesday exchange.

Fortescue Metals Group Ltd. and uranium extractor Paladin Energy Ltd. also helped lead mining-share losses, slumping 4.8% and 5.4%, respectively.

Banks extended their weakness after the Reserve Bank of Australia’s Tuesday interest-rate cut, with National Australia Bank Ltd. backslide 1.3% and Macquarie Group Ltd. recorded a 2.5% decline.

Chip shares flew back in Seoul, where Samsung Electronics Co. relinquished 2.2%, and SK Hynix Inc. downtrend 3.3%, following a 0.7% decline for the Nasdaq.

Among Hong Kong stocks, the energy shares were a weak spot after crude-oil futures gave up 1.2% during regular trade in New York.

Cnooc Ltd. skidded 0.6%, and PetroChina Co. downgraded 1.6%, while China Petroleum & Chemical Corp. — better known as Sinopec — saw a 0.7% pullback.

Casino shares were mixed, with Wynn Macau Ltd. hiking 3.1%, but MGM China Holdings Ltd. tumbling 4.6% after posting a quarterly loss.

On the Chinese mainland, real-estate majors drove gains after China Vanke Co. reported a 22% rise in its first-half profit.

Shares of Vanke spiked 2.2% in Shenzhen, while Poly Real Estate Group Co. jumped 4.3% and Gemdale Corp. produced 2.9% more in Shanghai.