Japan’s Nikkei Stock Average JP:100000018 +0.96% gained 0.8%, but South Korea’s KospiKR:SEU -1.34% fell 1.7%, and Australia’s S&P/ASX 200 index AU:XJO -0.93% retreated 1.1%.
Hong Kong’s Hang Seng Index HK:HSI -0.90% dropped 1%, while the Shanghai Composite Index CN:000001 -0.41% lost 0.6% ahead of the announcement of China’s new Communist Party leaders due later in the day.
The losses outside of Japan followed a sharp drop in U.S. stock markets Wednesday, as investors fretted about the “fiscal cliff” of potential tax hikes and spending cuts in January, as well as renewed tension in the Middle East. “Markets continue slowly to price in the fiscal-cliff risks. President Obama’s press conference suggests a significant gap remains between Republicans and Democrats on key issues, reducing the likelihood for a compromise in the eyes of the market,” strategists at Barclays Capital said, referring to the U.S. leader’s comments Wednesday.
“A cautious view on risky assets remains warranted until cliff risks have been successfully dealt with,” the Barclays analysts said.
Several Asia firms posted big share price moves on Thursday, with Hong Kong-listed Tencent Holdings Ltd. HK:700 -4.41% TCEHY -4.34% falling 5.7% after its third-quarter results missed estimates, with the Internet firm warning that online-advertising revenue growth may slow, due partly to softer Chinese economic growth. On the other hand, Hong Kong shares of Esprit Holdings Ltd. HK:330 +20.72% ESHDF -3.33% soared 19.8% after Michael Ying — the apparel firm’s chairman from 1993 to 2006 — upped his stake in the firm to 5.99% from 4.79%, according to reports.
In Tokyo, consumer electronics giant Sony Corp. JP:6758 -10.57% SNE -8.82% shot 10.9% lower in Tokyo after the global conglomerate announced after Wednesday’s close that it plans to issue the equivalent of about $1.85 billion in convertible bonds.
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