Asian markets made a soft start on regional concern

The Asian markets have made a weak start as concerns of China’s economic slowdown and its territorial dispute with Japan were weighing on corporate earnings of both the nations. Japanese market was leading the losers pack after its major auto makers reported drops in China sales. Toyota, Nissan Motor Co. and Honda Motor Co, all reported sales drop as rioters torched dealers shops and smashed cars in protests sparked by a China-Japan territorial dispute over a group of islands. Chinese market too has extended its decline led by materials producers, after Alcoa Inc. of US cut its forecast for global consumption of aluminum saying that slowing Chinese economy is hurting demand. However, there was some spurt in auto manufacturers on a report that government may expand subsidies for farmers to buy low emission vehicles and heavy-duty trucks.

Shanghai Composite was marginally down by 0.99 points or 0.01% to 2,114.99, Hang Seng lost 75.27 points or 0.36% to 20,862.01, Jakarta Composite was down by 4.19 points or 0.10% to 4,276.75, KLSE Composite was down by 2.78 points or 0.17% to 1,660.41, Nikkei 225 declined by 148.31 points or 1.69% to 8,621.06, Straits Times lost 26.29 points or 0.84% to 3,039.62 and Kospi Composite was lower by 23.24 points or 1.17% to 1,955.64. Taiwan Weighted is closed for trading on account of National Day.