(Bloomberg) -- Asian shares dropped as banks led declines from Seoul to Hong Kong, while North Korea again dominated headlines.
The MSCI Asia Pacific Index fell 0.2 percent to 160.21 as of 4:33 p.m. in Hong Kong, erasing Tuesday's gains. Japan's Topix closed 0.1 percent higher after reversing an early decline. Hong Kong's Hang Seng Index dropped 0.5 percent, with financial and property companies among the biggest losers.
Russian President Vladimir Putin joined China in rejecting U.S. calls for new sanctions against North Korea after its sixth and most powerful nuclear test Sunday. Traders are pricing in the region's geopolitical risks and taking profits ahead of China's twice-a-decade congress, set to start on Oct. 18, and reshuffle of top leadership.
“The selloff on North Korea will gradually taper off, as investors generally believe that a war is unlikely,”said Nelson Yan, a Hong Kong-based executive director at CCB Securities Ltd. “People will pay more attention to China's upcoming congress in the following weeks.”
Bank of China Ltd. fell 0.7 percent in Hong Kong as U.S. President Donald Trump's sanctions threat may put pressure on some Chinese lenders with North Korean ties. Industrial & Commercial Bank of China Ltd. slid 1 percent for a two-week low. South Korea's DGB Financial Group Inc. declined 1.8 percent after the nation's banks were downgraded by Nomura Holdings Inc.
In Tokyo, Recruit Holdings Co. surged 7.8 percent and Japan Post Holdings Co. gained 1.9 percent following the announcement that they will be added to the Nikkei 225 Stock Average next month.
Summary
- Topix +0.1%, Nikkei 225 -0.1%
- Topix Inches Up as Recruit's Nikkei 225 Addition Boosts Index
- Hang Seng Index -0.5%, Shanghai Composite Index little changed, Taiwan's Taiex -0.7%
- North Korea Threat Hits Hong Kong Stocks Even Harder Than Seoul
- China Banks, Oil Giants Put on Notice by Trump's Sanction Threat
- Kospi -0.3%, Kospi 200 -0.3%
- Moon Turns Into North Korea Hawk as Kim Jong Un Shuns Talks
- Straits Times Index -0.7%, Jakarta Composite -0.1%, Thailand's SET -0.2%, Philippines PSEi Index -0.8%, Vietnam VN Index +0.2%, FTSE Bursa Malaysia KLCI +0.1%
- Vietnam Stocks Still Hot as Other Asia Markets Lose Shine: Chart
- Philippine Miners Aim to Sway Duterte on His Open-Pit Ban Stance
- India's Sensex -0.4%, Nifty 50 -0.3%
- India's Sensex Declines as North Korea Missile Threat Persists
To contact the reporter on this story: Fox Hu in Hong Kong at fhu7@bloomberg.net.
To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Margo Towie
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