Asia pulls back as oil prices pressure steel and airline stocks (MarketWatch) (08-04-2008)

HONG KONG (MarketWatch) -- Markets in Asia closed lower on retreated Tuesday, as rising crude-oil prices favored only energy stocks and pressured down stocks of airlines and steelmakers.

Shares of Japanese financials such as Mizuho Financial Group declined as investors locked in profits after a strong run recently.

Japan's Nikkei 225 Average fell 0.9% to 13,325.01, while the broader Topix index gave up 0.9% to 1,294.25.

Hong Kong's Hang Seng Index lost 0.9% to 24,364.03, while the Hang Seng China Enterprises Index dropped 1.2% to 13,255.96.

China's Shanghai Composite lost 1% to 3,564.99, after surging 4.5% in the previous session. The index rose as high as 3,633.79 earlier during the volatile session.

Australia's S&P/ASX 200 fell 0.4% to 5603, after rising for six straight sessions. Elsewhere, South Korea's Kospi declined 0.9% to 1,757.16, New Zealand's NZX 50 index slipped 0.6% to 3,624.36, Singapore's Straits Times Index dropped 0.6% to 3,164.21 and Taiwan's weighted index gave up 0.4% to 8,691.28.

Steel shares were broadly lower on fears a sharp rise in raw-material prices could hurt profits. Shares of Posco declined 3.1% and Hyundai Steel Co. gave up 0.5% in Seoul, JFE Holdings dropped 0.7% and Sumitomo Metal Industries stock lost 1.8% in Tokyo, Bluescope Steel shed 2.8% in Sydney and Baoshan Iron & Steel Co. declined 1.6% in Shanghai.

In Tokyo, shares of Mizuho Financial Group lost 2.1% and Mitsubishi UFJ Financial Group gave up 1.3% after each rose by more than 10% in the previous five sessions.

Shares of NTT DoCoMo Inc. dropped 1.3% on reports that its market share in Japan's mobile phone market fell below 50% for the first time since December 1998.

Australian banks rebounded from early losses, after suffering heavy losses in the previous session after Australian & New Zealand Banking Group said its provisions for bad losses likely soared by more than 70%.

 Source: MarketWatch