Asian stocks fell after Japan reported on Wednesday that it fell back
into a trade deficit last month because of languishing exports and as investors
watched for progress on bailout conditions for Greece by eurozone policymakers.
Energy shares led declines as
major oil and gas companies reported disappointing earnings as the global
economic outlook — and energy demand — remained uncertain.
Japan's Nikkei 225 index shed 0.4
percent to 9,119.87, while South Korea's Kospi dropped 0.8 percent to 1,926.74.
Hong Kong's Hang Seng fell 0.8 percent to 19,934.98, while Australia's
S&P/ASX 200 dipped 0.3 percent to 4,372.20.
In mainland China, the Shanghai
Composite Index slid 0.4 percent to 2,110.25. Benchmarks in Singapore, Taiwan
and New Zealand also fell.
Provisional trade figures showed
Japan posted a 517.4 billion ($6.5 billion) trade deficit in July, compared
with a surplus the year before, as exports fell 8 percent. Exports of autos and
electronics by Asia's second-biggest economy have been hurt by the
strengthening yen as well as weak demand from Europe as it battles a debt
crisis.
Investors are also awaiting
developments as Greek Prime Minister Antonis Samaras meets Luxembourg Prime
Minister Jean-Claude Juncker, who chairs the eurozone finance ministers'
meetings, in Athens later Wednesday. Samaras heads to Berlin and Paris on
Friday and Saturday for talks with German Chancellor Angela Merkel and French
President Francois Hollande.
Samaras is expected to request an
extension of Greece's deadline to meet fiscal targets as the country carries
out painful reforms. Greek officials are preparing €11.5 billion ($14.2
billion) in spending cuts the country needs to carry out in order to receive
rescue loans protecting it from bankruptcy.
"With the Greek PM's
meetings kicking off later today, eyes will likely remain on Europe,"
strategists at Credit Agricole CIB wrote in a research note. "Given plenty
of event risks, investors are likely to turn cautious."
Australia's Woodside Petroleum
Ltd. fell 3 percent after the energy company reported that first-half profit
fell 1.9 percent. BHP Billiton Ltd., the world's biggest mining company, dipped
0.3 percent. The company is expected to report its first drop in annual profit
since 2009 when it announces earnings after trading closes in Sydney.
In Hong Kong, shares of CNOOC
Ltd., one of China's three major state-owned oil and gas producers, fell 1.8
percent a day after it reported first-half profit fell 19 percent.
PetroChina, China's biggest oil and
gas company , fell 2.2 percent ahead of first-half earnings report, expected
later in the day.
On Wall Street on Tuesday, the
Dow Jones industrial average fell 0.5 percent to close at 13,203.58 while the
broader S&P 500 lost 0.3 percent to 1,413.17 after touching its highest
level in more than four years. The Nasdaq composite index lost 0.3 percent to
3,067.26.
Crude oil fell rose 1 cent to
$96.85 per barrel in electronic trading on the New York Mercantile Exchange.
The contract rose 71 cents to settle at $96.68 per barrel in New York on
Tuesday.
In currencies, the euro weakened
slightly to $1.2464 from $1.2467 late Tuesday in New York. The dollar fell to
79.27 Japanese yen from 79.42 yen.
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