Asia: Stocks decline on stronger yen, Chinese IPOs
Asian stocks declined as the US dollar moved lower against the Japanese yen.
The US dollar fell 0.13% to 103.91 yen at 05:00 New York time. A stronger yen is seen to hurt exports in the world's third largest economy.
Japan's Nikkei finished down 0.59%.
In China, the Hang Seng index fell 0.37% and Shanghai's composite dipped 0.99%.
Investors are concerned new initial public offerings (IPOs) in China could divert funds from existing listed equities.
Chinese IPOs have rallied an average 94% from their issue price this year, or seven times more than the global average, which contrasts with weak demand among local investors to participate in the broader stock market.
The market is also worried about the risk of a property bubble in China and the potential impact which that might have on the prices of industrial metals, such as iron ore.
Increased output from lower cost producers in Australia and Brazil is weighing on prices.
"With supplies ramping up and China's property market looking to be in the relatively early stages of adjusting for a supply glut, it's certainly a scenario where buyers may now be in a position to delay purchases in the spot market," Ric Spooner, chief strategist at CMC Markets in Sydney, said by e-mail today.
"That could easily see prices drift lower."
Meanwhile, prices of iron ore with 62% content at Qingdao decreased 0.3% to $90.07 a tonne on Monday, close to the year's lowest level at $89.48. In October 2009 prices fell to $88.08.
In corporate news, Boart Longyear slumped after the Australian mining-services firm posted a first-half loss.
China State Construction International edged lower in Hong Kong after Morgan Stanley advised selling the shares.
Dena advanced after the Japanese website owner's Kiritani-san x Bike Run game jumped to the top ranking of free Apple Inc. iOS application downloads in Japan.
RD