Shanghai shares notched up another multi-year low Monday, while steep losses for Samsung Electronics Co. weighed in South Korea, but Japan saw modest currency-linked gains.
Japan’s Nikkei Stock Average 100000018 +0.16% ended with a 0.2% gain, though it was one of the few indexes to notch gains.
The Shanghai Composite Index 000001 -1.74% fell 1.2% to a level not seen since January 2009, after closing at its lowest level since March 2009 on Friday. Hong Kong’s Hang Seng Index HSI -0.48% lost a more modest 0.4%.
Australia’s S&P/ASX 200 index XJO -0.12% traded down 0.1%, while the South Korean Kospi SEU -0.10% also lost 0.1% in a choppy session as Samsung Electronics SSNLF +5.36% tumbled 7.7%.
The tech major’s shares are currently the Kospi’s top component, with a weighting of 17% as of last Friday.
A U.S. court decided to award rival technology firm Apple Inc. AAPL +0.09% $1.05 billion in damages after finding that Samsung had infringed six Apple patents.
The jury also found that Apple did not infringe any Samsung Electronics patents and didn’t award damages to the Korean firm. Read more on Samsung-Apple patent ruling.
Asia’s moves came after Wall Street shares rose sharply Friday as Federal Reserve Chairman Ben Bernanke indicated in a letter that the U.S. central bank has more tools, if needed, to stimulate the economy. Read more on U.S, stocks.
Credit Agricole strategists also cited more optimism for stimulus from China on Monday, after Premier Wen Jiabao told state radio that the nation needs policies to help struggling exporters.
“Chinese Premier Wen’s pledge on promoting exports growth keeps hopes for stimulus alive,” the strategists said.
However, stimulus optimism couldn’t prevent Chinese shares from losing more ground Monday, with data showing a 5.4% decline in profit from China’s major industrial enterprises for July compared to the year-ago period.
“First-half profits are on track to be one of the most disappointing on record,” said analysts at Jefferies. “A combination of tight working capital, rising cost pressures and increased inventories have undermined earnings and cash-flows,” the analysts said.
“Chinese equities are still likely to struggle until the inventory adjustment commences, as well as more vigorous policy loosening,” they said.
Notable decliners in Shanghai included Citic Securities Co. 600030 -5.30% CIIHF 0.00%, down 4%; Dongfeng Automobile Co. 600383 +1.20%600006 -2.46%, down 1.8%, and Air China Ltd. 601111 -2.79% AIRYY -2.89%, which fell 2.2%.
Android-smartphone maker ZTE Corp. 763 -6.88% ZTCOY +5.34% plunged 5.5% in Hong Kong after the Apple patent win, while HTC Corp. HTCKF -30.56% 2498 -5.00% traded down 1.9% in Taipei.
“?Beyond Samsung, the entire Android ecosystem will now face similar risks and challenges, as Apple potentially gets emboldened by this decision,” said analysts at Sanford C. Bernstein. Read more on likely verdict fallout for Samsung Electronics.
Commodity-linked firms were mostly lower in Hong Kong, with PetroChina Co. 857 -1.76% PTR +1.11% down 2.2% and Aluminum Corp. of China Ltd. 2600 -3.98% ACH -1.05% down 4%, while China Coal Energy Co. 1898 0.00% CCOZY +2.28% retreated 1.5%.
But China Petroleum & Chemical Corp. 386 +2.79% SNP -0.99%, better known as Sinopec, saw its shares gain 2% as its 41% fall in first-half profit reported Sunday nonetheless beat expectations. Read more on Sinopec results.
Tokyo trends higher
The yen remained relatively weak against its major rivals Monday, as the U.S. dollar USDJPY +0.01% bought ¥78.72 Monday, up from ¥78.70 in late North American trading Friday.
Some of the Japan’s top technology firms — often sensitive to foreign-exchange moves — were among the best performers in Tokyo. Pioneer Corp. 6773 +4.37% PNCOF -35.19% rose 4.4%, and Panasonic Corp. 6752 +0.72% PC -0.84% advanced 0.7%.
Olympus Corp. 7733 +4.41% OCPNF +4.17% jumped 4.4% in Tokyo after announcing Friday that it plans to sell a mobile-phone sales subsidiary for about $674 million.
Sharp Corp. 6753 +2.60% SHCAF -0.86% surged 2.6%, amid reports the company’s management was due to meet with the head of Taiwan’s Hon Hai Precision Industry Co. 2317 0.00% HNHPF +0.36% to discuss the price and size for the latter’s planned investment in Sharp.
The original deal, announced in March, called for Hon Hai to buy just under 10% of Sharp, and the Yomiuri Shimbun reported Monday that the size of the purchase would stay the same, even as the price is likely to be cut due to the drop in Sharp shares. Read more on Sharp-Hon Hai reports.
Hon Hai — which, with its anchor subsidiary Foxconn, supplies Apple — rose 0.7% in Taipei.
Meanwhile, Apple is reportedly in talks with South Korean telecom firms SK Telecom Co. SKM -0.41%, up 1.4%, and KT Corp. KT 0.00%, up 1%, over the launch of its next phone in South Korea, which may be now be delayed if Samsung is able to secure a sales ban, the Korea Times reported. Read more on Apple’s planned Korea launch.
On the downside in Tokyo, pharmaceutical firm Daiichi Sankyo Co. 4568 -1.98% DSKYF +1.65% fell 2% after it announced, along with U.S. partner Eli Lilly & Co. LLY +3.44%, that a phase-III study involving a treatment for types of angina and myocardial infarction failed to meet a primary objective.
Nomura Holdings Inc. 8604 -1.43% NMR -0.56% declined 1.4%. A report from Reuters said that the bank is planning hundreds of job cuts, mostly in equities and investment banking and primarily in its European operations. Read more on Nomura’s reported job-cut plans.
Kansai Electric Power Co. 9503 -5.31%KAEPY +10.62% tanked 5.3% after the Nikkei reported that the firm won’t pay an interim dividend for the first time since 1980.
Toll Holdings Ltd. TOL -0.09% lost 0.9% in Sydney. The firm posted a 77% slide in annual net profit after taking a writedown from its Japanese freight business, which was hurt by last year’s disastrous earthquake and tsunami. Read more on Toll Holdings earnings.
Miners climbed in Sydney, however, with Rio Tinto Ltd. RIO -1.05% RIO -1.05% higher by 0.6%, and Alumina Ltd. AWC -2.96% AWC -2.96% jumping 2.1%.
Marketwatch
