It was another rough day for Asian shares on Thursday.
Asian indices tanked for a second day running. Shanghai’s SSE slid 3.2 percent while Tokyo’s Nikkei 225 shed 2.4 percent and Hong Kong’s Hang Seng slipped 1.8 percent.
In Hong Kong, Li & Fung shed 2.1 percent to close at 4.30 Hong Kong dollars while Chow Tai Fook lost 1.62 percent at 4.24 Hong Kong dollars. Prada finished the day in positive territory, inching up 0.23 percent at 21.80 Hong Kong dollars.
In Tokyo, Fast Retailing lost 2.9 percent to end the day at 34,610 yen. Shiseido shed 2 percent to finish at 2,129 yen.
The Hong Kong market faded from opening strength and reversed in the afternoon session. The Chinese central bank’s larger than usual injection of 400 billion yuan or $60 billion, the most in three years, failed to boost sentiment with investors still very cautious on China’s economy growth outlook.
“There’s some tax liability due in January so people need quite a bit of liquidity. The liquidity operation today was not enough to satisfy the demand so that’s why the mainland market is down,” said Hao Hong, Bocom International’s managing director of research.
“I would say that we are in a precarious situation because the fundamentals are getting worse, the liquidity is tight and sentiment is very weak.”
China’s government said Tuesday the country’s economy grew 6.9 percent last year, shy of its own projections of 7 percent.