Asian markets retreat into negative territory (MarketWatch) (20-05-2008)

HONG KONG (MarketWatch) -- Asian stocks fell in the afternoon on Tuesday led by Hong Kong shares on China Mobile, which reported weaker subscriber-growth numbers, while in Australia both resource stocks and a cautious outlook by Macquarie Bank send indices down.

The Nikkei 225 was down 0.8% at 14,154.23 in mid-afternoon trading, while the Topix index eased 0.2% to 1,401.13.

Australia's S&P/ASX 200 fell 0.6%, South Korea's Composite Index fell 1.3% and China's Shanghai Composite index ended the morning session 1.2% lower.

Hong Kong's Hang Seng Index eased 1.8% to 25,282.29 while the China Enterprises Index, or Hong Kong-listed shares of mainland-incorporated companies, fell 1.7% to 14,125.83.

Shares of China Mobile fell 2.5% after the cellular service-provider, the world's largest by subscribers, said it signed 7.4 million new customers in April, down from 7.78 million in March.

The Bank of Japan on Tuesday, as expected, voted unanimously to hold interest rates unchanged at 0.5%, the lowest among the Group of Seven nations.

Shares of Macquarie Group Ltd dropped 6.3%. The firm reported net income climbed 23% to A$1.8 billion ($1.73 billion) in the fiscal year ended March 31 but warned tougher financial conditions would weigh on its performance this year. The result was slightly below analysts' expectations and in line with indications given by management earlier in the year.

In currencies, the U.S. dollar was changing hands at 104.16 yen compared to 104.29 yen in late New York Monday and 104.01 yen late Friday.

  SourceMarketWatch