ASIA STOCKS weakenes again (25.06.2013)

Mainland Chinese stocks ended mildly lower on Tuesday.

The Shanghai Composite Index had plunged as much as 5.8% earlier in the day on heightened worries about the economic impact from high borrowing costs in the interbank money markets. It recovered most of the lost ground to finish the day 0.2% lower at 1,959.51.

The recovery came on news that policy makers from multiple Chinese agencies, including the People’s Bank of China, and the banking and capital market regulators, had called a press conference on Tuesday at the Lujiazui Forum — a conference on major financial issues facing China.

Major Chinese banks led the recovery, offsetting losses suffered by most stocks. Shares of Agricultural Bank of China Ltd. and Bank of China Ltd.  climbed 1.2% each.

Meanwhile, stocks in Hong Kong rebounded after a five-day losing streak, with the Hang Seng Index rising 0.5% to 19,921.63, but shy of the 20,000-point level.

Gains were led by stocks beaten down recently, with conglomerate Wharf Holdings Ltd. rising 3% and New World Development Co. rising 3.3%.

Other regional markets, which had tumbled earlier in the day as losses in Shanghai steepened, also narrowed their declines.

Japan’s Nikkei Stock Average ended the day 0.7% lower.

Nippon Yusen K.K. climbed 2.7%, Kawasaki Kisen Kaisha Ltd. gained 4.5% and Resona Holdings Inc. added 0.7%.

Elsewhere, Australia’s S&P/ASX 200 dropped 0.3% and South Korea’s Kospi  lost 1%.

Australia & New Zealand Banking Group shares picked up 0.5% and Commonwealth Bank of Australia was higher by 0.5%.

Concerns about economic growth in China weighed on mining stocks, with Rio Tinto Ltd. down 1.6% and BHP Billiton Ltd. off 1.2%. But shares of iron-ore producer Fortescue Metals Group Ltd. notched a 1.7% rise, reaching for their first advance in four sessions. 

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