Image by Niyantha via FlickrMost Asian stock markets moved lower Tuesday as fears about further tightening measures in China helped fuel a drop in the Shanghai Composite index to its weakest closing level in seven weeks.
The Chinese market "started to sell off as the rumor was that the local press was indicating more room for the [People's Bank of China] to raise reserve requirements and further that deposit rates should be increased to fend off inflation," said Brett McGonegal, managing director at Cantor Fitzgerald.
The Japanese market also fell, with the Nikkei Stock Average ending at a nearly two-week low after data showed a rise in unemployment and a drop in industrial production in October.
However, the Seoul market climbed after posting losses in the past two sessions, buoyed by an uneasy calm on the Korean peninsula.
"Lingering concern about the tensions in Korea as well as about the Eurozone crisis are holding back markets globally, including in Asia," said Martin Hennecke, associate director at Tyche Group.
China's Shanghai Composite Index slid 1.6% to finish at 2,820.18, the benchmark index's lowest closing level since Oct. 11 and Japan's Nikkei Stock Average fell 1.9% to 9,937.04, its weakest close since Nov. 17. Hong Kong's Hang Seng Index closed down 0.7% and Australia's S&P/ASX 200 closed off 0.7%, while South Korea's Kospi Composite ended 0.5% higher.
Overall, markets were hurt by continuing worries over the euro-zone debt woes. Despite Sunday's announcement of a 85-billion-euro bailout package for Ireland, worries remained as to whether Portugal or Spain will also need help refinancing their debt.
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