Financials push Asian markets down (MarketWatch) (05-03-2008)

HONG KONG (MarketWatch) -- Most Asian markets declined on Wednesday, as Australian stocks pulled back from, while mainland China stocks extended losses on concerns the monetary policy may continue to be tightened in the face of rising inflation.

In Tokyo, the Nikkei 225 Average fell 0.4% to 12,936.77 and the broader Topix index lost 0.3% at 1,262.41. The session seesawed violently and financials were mostly down as Mitsubishi lost 2.33%, Sumitomo pulled back 0.6% and Mizuho Financial Group tumbled 3.13% as worry continues regarding global credit markets.

China's Shanghai Composite dropped 2.1% to 4,242.63, on top of the 2.3% drop Tuesday, after Chinese premier Wen Jiabao said that controlling inflation and preventing overheating were priorities for the government, raising fears of continued monetary policy tightening.

In Hong Kong, the Hang Seng China Enterprises index shed 1.7% to 12,747.31, tracking the weakness in Shanghai. The benchmark Hang Seng Index dropped 0.9% to 22,920.59, slipping below the 23,000 point level for the first time in nearly three weeks.

Australia's S&P/ASX 200 fell 0.3% to 5,366.70, after rising as high as 5,461.30 earlier in the day on bargain buying in financials such as Commonwealth Bank of Australia and National Australia Bank.

Elsewhere, New Zealand's NZX 50 index added 1% to 3,619.47, South Korea's Kospi dropped 0.3% to 1,671.03, Singapore's Straits Times index fell 0.4% to 2,908.66 and Taiwan's weighted index slipped 0.1% to 8,461.75.

Source: MarketWatch