Asian markets dip led by Shanghai (MarketWatch) (27-03-2008)

HONG KONG (MarketWatch) -- Asian markets declined on Thursday, as steel shares plunged in Shanghai, while other markets also fell on worries about the health of the U.S. economy. 

China's Shanghai Composite was the worst-hit, sinking 5.4% to 3,411.49, a level it hasn't seen since April, after Baoshan, the mainland's largest steelmaker reported a 3% decline in 2007 net income on higher costs, which sent its stock tumbling by 9%. The shares had dropped by the session's limit of 10%. Shares of other steelmakers also dropped, with Wuhan Iron & Steel Co. sinking 8.9% and Maanshan Iron & Steel Co. losing 5.4%. 

Hong Kong indices also fell and the Hang Seng China Enterprises Index fell 0.5% to 11,805.87. But the benchmark Hang Seng Index wavered between positive and negative zones. It finally closed up by 0.21% or 47.21points at 22,664.22. 

Japan's Nikkei 225 Average ended the day 0.8% lower at 12,604.58 and the broader Topix index gave up 0.9% to 1,226.44. 

Australia's S&P/ASX 200 slipped 0.2% to 5,371.60, South Korea's Kospi fell 0.2% to 1,676.24, and New Zealand's NZX 50 index shed 0.6% to 3,404.55.

Taiwan's Weighted index lost 1.9% at 8,605.95 and Singapore's Straits Times Index gave up 0.1% at 2,993.29. India's Sensex fell 0.9% to 15,933.37 in afternoon trading. 

In Shanghai, worries about liquidity and a media report about China Minsheng Banking Corp. also added to the broad market weakness. The report said China Minsheng has liquidated an equity-based fund that invests in overseas markets after its value fell by more than 50%. 

Shares of China Minsheng fell 4.4%, while China Life Insurance Co.  lost 5.9%.

Financials also dropped elsewhere in the region after the overnight fall on Wall Street, with Mizuho's stock dropping 3.3% and Citigroup Inc. stock sinking 7.2% in Tokyo.

In Sydney, shares of Commonwealth Bank shed 2.1% and Macquarie Group lost 1.1%. Kookmin Bank  stock gave up 3.2% in Seoul and HSBC Holdings  slipped 0.9% in Hong Kong.

Source ISFM