Asian stocks fell from a two-month high on Tuesday, with a sharp fall in oil prices overnight and mixed Chinese trade figures weighing on the markets. Amid lack of any positive triggers, investors waited for quarterly results from major U.S. banks due this week for further direction.
Chinese stocks showed little reaction to the latest data showing decline in both exports and imports on an annual basis. Official figures showed that exports fell an annual 3.7 percent in dollar terms in September, beating expectations for a 6.0 percent decline after a 5.5 percent fall in the previous month. Imports tumbled 20.4 percent year-over-year, versus forecasts for a decline of 15.9 percent following a 13.8 percent drop the previous month. That left a trade surplus of $60.34 billion for the month.
The benchmark Shanghai Composite index closed up 5.57 points or 0.17 percent at 3,293.23 after climbing 3.3 percent to hit a seven-week high in the previous session. Hong Kong 's Hang Send index dropped 130.47 points or 0.57 percent to 22,600.46 after Chinese trade data signaled weakening global and domestic demand.
Japanese shares fell as investors continued to pocket gains following last week's sharp rally. The benchmark Nikkei average fell 203.93 points or 1.11 percent to 18,234.74 after climbing 4 percent last week. The broader Topix index dropped 0.79 percent to finish at 1,503.13. Honda Motor retreated 2.8 percent and Panasonic declined 2.2 percent as the safe-haven yen edged higher against the dollar on concerns over demand from top consumer China.
Market heavyweight Fast Retailing fell 3.7 percent, robot maker Fanuc lost 3.3 percent and mobile carrier Softbank Corp shed 3 percent. Energy explorer Inpex Corp fell 3.4 percent after an overnight tumble in global oil prices, while ANA Holdings and Japan Airlines advanced 3-4 percent. Sharp Corp soared 6.5 percent on news that state-backed investment fund Innovation Network Corp of Japan may invest about 200 billion yen in the consumer electronics giant.
In economic news, minutes from the Bank of Japan's September 14 and 15 meeting revealed that board members expect the year-on-year rate of increase in the CPI to be about 0 percent for the time being, due to the effects of decline in energy prices. Separately, survey figures from the Cabinet Office showed that Japan's consumer confidence weakened more than forecast in September.
Australian shares fell further from six-week highs hit last week amid broad-based weakness in commodity prices. The benchmark S&P/ASX 200 index dropped 30 points or 0.57 percent to 5,202.9, extending losses for a second straight session. The broader All Ordinaries index fell 32.80 points or 0.62 percent to 5,234.6.
Big miners BHP Billiton and Rio Tinto lost 2-3 percent, gold miner Newcrest Mining fell 2.1 percent, oil & gas producer Santos slumped 6.2 percent and rival Woodside Petroleum shed 2 percent. Banks outperformed, with Commonwealth, NAB and Westpac falling around half a percent each, while ANZ rose 0.6 percent. Telecoms giant Telstra declined 0.9 percent after announcing it would take an $80 million earnings hit from competition watchdog ACCC's ruling last Friday.
On the economic front, National Australia Bank's monthly survey of more than 400 firms showed that its index of business confidence rose by 4 points to a reading of 5 in September, while the headline index on business conditions held steady at an above average +9 in the month.
Seoul shares ended marginally lower as sluggish Chinese imports data raised concerns over future demand from China. The benchmark Kospi average slid 2.58 points or 0.13 percent to 2,019.05, snapping a five-session winning streak. Consumer electronics maker LG Electronics dropped 2.2 percent and cosmetics giant AmorePacific lost 1.8 percent. Automaker Hyundai Motor and its affiliate Kia Motors gained 2.5 percent and 3.7 percent, respectively as the South Korean won fell against the dollar.
New Zealand shares eked out modest gains despite weakness in other regional markets. The benchmark NZX-50 index hit a three-week high before paring gains to close up 12.99 points or 0.23 percent at 5,702.82. While Fisher & Paykel Healthcare and Trade Me climbed 2-3 percent, Fletcher Building, the construction and building supplies firm, dropped 1.1 percent and outdoor clothing retailer Kathmandu Holdings shed 1.3 percent.
Elsewhere, Taiwanese shares fell marginally, Indonesia's Jakarta Composite index was tumbling 2.8 percent, India's Sensex was down 0.6 percent and Singapore's Straits Times index was losing 1.1 percent, while Malaysia's KLSE Composite index was up 0.1 percent.
U.S. stocks posted modest gains once again on Monday, though the small gains were enough to lift the Dow and the S&P 500 to their best closing levels in almost two months. While utilities, consumer services and telecom stocks gained ground, material and energy stocks retreated along with the fall in crude oil prices.
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