Asian shares plunge as China stock tumble triggers concern

Asian shares plunge as China stock tumble triggers concern

ASIAN stocks fell yesterday for the first time in three days after China tripled the tax on securities transactions, causing the biggest slump in the region's best performing equity market in three months.
"Today's (Wednesday) correction in Chinese shares is causing a knee-jerk reaction across Asia," said Shane Oliver, who helps oversee US$83 billion at AMP Capital Investors in Sydney, according to Bloomberg News. "Markets have become skittish on this type of news given some of the extreme reactions in recent history."
China Life Insurance Co fell to a seven-week low in Hong Kong on concern the sell-off will spread to other markets in the region. CNOOC Ltd and Woodside Petroleum Ltd led a drop in energy stocks after oil dropped the most in more than seven weeks.
The Morgan Stanley Capital International Asia-Pacific Index slid 0.6 percent to 148.24 inTokyo, snapping a two-day, 0.9 percent advance. The measure dropped 7 percent in the four days after February 27.
Japan's Nikkei 225 Stock Average lost 0.5 percent. Toyota Motor Corp declined after industrial production unexpectedly dropped and showed auto maker inventories rose for the first time since December, indicating companies cannot sell cars as fast as they are being produced.
Benchmarks declined around the region, except in South Korea, Sri Lanka and Thailand, where the SET Index gained the most in more than three months.
In Hong Kong, China Life, the Chinese mainland's biggest insurer, dropped 3.3 percent to HK$23.70 (US$3.04), the lowest since April 10. China Mobile Ltd, the world's largest mobile-phone company by users, lost 0.6 percent to HK$71.30, adding to a five-day, 3.9 percent loss.
CNOOC, the mainland's largest offshore oil explorer, dropped 2.9 percent to HK$7.11. Woodside, Australia's second-biggest oil producer, lost 1.8 percent to A$43.68 (US$35.92). Inpex Holdings Inc, Japan's No. 1 oil explorer, fell 1.9 percent to 1.05 million yen (US$8,637).
Crude oil for July delivery plunged 3.1 percent to US$63.15 a barrel in New York on Tuesday, the biggest decline for a front-running contract since April 9. Futures were recently at US$63.46.
Toyota, the world's largest auto maker by market value, slid one percent to 7,280 yen. The firm's US sales fell in April for the first month in two years.
Honda Motor Co, Japan's No. 2 car maker, declined 0.7 percent to 4,190 yen. Sales at Honda slid 9.1 percent.