Asian stock markets ended mixed Tuesday as renewed concerns over the global economic growth continued to weigh on sentiment.
Chinese Shanghai Composite declined 0.19 percent or 3.90 points to 2,029.29 and South Korean KOSPI Composite fell 0.60 percent or 12.03 points to 1,991.41. While Japanese benchmark Nikkei gained 0.25 percent or 22.25 points to 9,091.54, Indian benchmark BSE Sensex gained 0.23 percent and Hong Kong's Hang Seng ended flat.
Global markets declined overnight as the euro zone once again took the center stage after data showed that business optimism in Germany declined for the fifth consecutive month in September, suggesting that the European Central Bank’s bond-buying plan has had a profound impact on the asset prices around the region but has yet to translate to the real economy.
"The German data is just the latest sign of a global slowdown and is likely to drag on the market today," Toshiyuki Kanayama, senior market analyst at Monex, told Reuters.
The German IFO Institute's business climate index, a poll of more than 7,000 executives, weakened further to 101.4 in September- the lowest reading in nearly two years – from 102.3 in August and also widely missed analysts’ estimate of 102.0. Uncertainty about the bailout prospects for Greece and Spain also added to the down trend.
“Risk measures continue to creep higher as a host of worries especially the lack of traction in the Eurozone towards a Spanish agreement on a bailout and inability of Greece to agree on deficit cuts, afflicted markets. The near term outlook is likely to remain one of caution until some progress in the Eurozone is in evidence,” said a note from Credit Agricole.
In Tokyo, Sharp Corp. gained 0.49 percent and Resona Holdings Inc. surged 2.15 percent while Toyota Motor Corp. gained 1.11 percent.
Machinery and construction companies plunged in Tokyo as Caterpillar, the world's largest earth moving equipment maker, reduced its 2015 earnings forecast Monday, underscoring fears about the global growth slowdown. Komatsu Ltd. fell 1.02 percent and Kawasaki Heavy Industries Ltd. declined 1.78 percent.
Standard Chartered Plc plunged 2.03 percent and Sands China Ltd. gained 1.42 percent in Hong Kong while China Railway Construction Corp Ltd. declined 1.99 percent and China Shipping Development Co Ltd fell 0.96 percent in Shanghai.
In Seoul, Hanjin Shipping Co Ltd. fell 1.94 percent and LG Display Co Ltd. plunged 2.75 percent while Samsung Electronics Co Ltd. fell 0.39 percent.
To contact the editor, e-mail: