Asian shares close lower

Asian shares tumbled from multi-month peaks today, in a sell-off led by the Shanghai market, as investors booked in profits ahead…

Asian shares tumbled from multi-month peaks today, in a sell-off led by the Shanghai market, as investors booked in profits ahead of more company earnings.

Japanese shares gained, but stock indices in Australia and Hong Kong fell after strong run-ups in the past two weeks. The MSCI Asia-Pacific index excluding Japan fell 2.6 per cent, flagging after a climb this week to a 10-month high.

In Europe, stock eased after Chinese stocks fell as investors worried banks there may start to restrict lending, and S&P futures signalled a soft start on Wall Street.

Shares in China State Construction, whose $7.3 billion IPO last week was the world's largest in a year, jumped 70 per cent at its debut, besting expectations -- but also stirring concerns about asset price bubbles.

READ MORE

It was the second big listing in Shanghai since China resumed IPOs last month, and followed on the heels of Sichuan Expressway's runaway success on Monday.

BBMG, one of China's largest building materials manufacturers, also jumped 60 per cent at its debut in Hong Kong.

But the Hang Seng index shed 3 per cent after ending at its highest in nearly 11 months yesterday, and the Shanghai Composite Index closed down 5 per cent, its biggest daily loss in 8 months.

In Tokyo, the Nikkei average edged up 0.3 per cent to its highest close in seven weeks, a day after snapping its longest string of consecutive gains since 1988.

Japan's market was buoyed by high-tech shares such as Tokyo Electron. After the bell Nomura Holdings, its largest brokerage, posted its first profit in six quarters, and Toshiba announced a smaller-than-expected quarterly operating loss thanks to solid chip prices.

Australian shares shed 0.6 per cent, with top investment bank Macquarie Group up on relief that its operations were improving. Shares in BHP Billiton, which agreed with some customers to take a 33 per cent price cut for contracted iron ore shipments, fell 1.5 per cent.

Reuters