HONG KONG: Stocks fell in Asia today as weak Japanese data illustrated the fragile recovery in the world's second biggest economy, while dealers cautiously await key data out of the US and Tokyo.
And Shanghai tumbled on growing fears over market sentiment after the last of China's "big four" state banks priced its initial public offering in the city below expectations.
The markets were given a poor lead from Wall Street due to uninspiring consumer figures, while the euro was sold on risk aversion caused by the falling shares.
Tokyo fell 1.27%, or 123.27 points, to close at 9,570.67, while Sydney was 0.88%, or 38.8 points, lower to end at 4,345.7.
Hong Kong lost 1.07% by the break and Singapore lost 1.37%.
"I think we are just drifting ahead of the economic data this week," UBS executive director Mark Fitzgerald told Dow Jones Newswires.
The Bank of Japan will on Thursday release its monthly Tankan survey of business sentiment that will give an insight into the state of the economy.
However, data out today suggested the outlook is weak after unemployment rose unexpectedly in May, while factory output declined and household consumption fell.
Unemployment edged 0.1 percentage points higher in May to 5.2%, missing expectations of a fall to 5.0%.
Household consumption
Average household consumption also fell unexpectedly in May, by 0.7% on-year, defying forecasts of a 0.5% rise as weak domestic demand continues to be a burden.
The United States will on Friday release non-farm payroll data with many fearing a poor figure could suggest a jobless recovery and the possibility of a double-dip recession.
Credit Agricole Corporate & Investment Bank said in a note: "A degree of risk aversion has crept back into the market ahead of Friday's US jobs report."
Despite earlier optimism, Shanghai fell 4.1 percent in later trade, with analysts saying the low price range for Agricultural Bank of China's initial public offering had raised concerns.
Agbank set a value of 37-39 US cents a share, which would raise up to US$10.1 billion.
But it set a price of 37-44 US cents a share in Hong Kong, where it is also due to list, which would raise as much as US$13.08 billion. The combined value would make it the world's biggest IPO. (initial public offering).
"The IPO price range was pegged slightly lower, reflecting that there may be a slowing down in investment activity," Xu Yinhui, an analyst from Guotai Junan Securities, said.
The US Commerce Department said consumer spending, a key driver of US economic growth, rose 0.2% in May after being flat in April, while personal income rose 0.4%, slowing from a 0.5% increase in the previous month.
The euro was changing hands at 1.2258 dollars in Tokyo afternoon trade, down from 1.2276 in New York late yesterday, while slipping to 108.75 yen from 109.72 yen. The dollar was trading at 88.72 yen, down from 89.35 yen in New York.
Oil was lower. New York's main contract, light sweet crude for August delivery, was down 19 US cents at US$78.06, while London's Brent North Sea crude for August dropped 13 cents to US$77.46.
Gold opened at 1,238.00-1,239.00 US dollars an ounce in Hong Kong, sharply down from Monday's close of 1,253.00-1,254.00 US dollars.
