(MENAFN- AFP) China led a slump in Asian markets Tuesday, with Shanghai registering one of its biggest percentage falls of the year and banks among the biggest losers there.
Dealers said a recent run-up following a surprise Chinese interest rate cut had created room for a market correction.
Shanghai dropped 3.03 percent, or 94.84 points, to finish at 3,032.61. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 1.39 percent, or 19.68 points, to 1,392.62.
Hong Kong ended down 0.32 percent or 74.88 points at 23,333.69. Sydney dropped 61.1 points, or 1.12 percent, to close at 5,380.9, and Seoul slipped 0.21, or 4.10 points to end at 1,939.02.
Tokyo was closed for a public holiday.
"The (Shanghai) market climbed too fast in such a short time after the November interest rate cut, which has caused some structural problems in the market," Shenyin & Wanguo Securities analyst Gui Haoming told AFP.
The market had jumped more than 20 percent since the cut to interest rates last month -- rising above the 3,000 mark on December 16 for the first time in three and a half years.
Industrial and Commercial Bank of China lost 4.88 percent to 4.48 yuan while China Construction Bank fell 5.01 percent to 6.26 yuan.
The slide in Asia came despite a positive lead Monday from Wall Street, which remained buoyed by a Federal Reserve meeting last week. There were also high hopes of more good news from a heavy day of economic data releases Tuesday.
Last Wednesday the Fed kept interest rates low and left in place expectations that it may wait until mid-2015 before raising them.
The Dow Jones Industrial Average and broad-based S&P 500 hit new highs late Monday.
The Dow jumped 154.64 (0.87 percent) to 17,959.44, almost a point above the previous record.
The S&P 500 advanced 7.89 points (0.38 percent) to 2,078.54, about three points above the previous high on December 5.
The tech-rich Nasdaq Composite Index rose 0.34 percent.
- 'Money is flowing' -
"Money is flowing to the US right now because it's definitely in the healthiest position," Aaron Jett, vice president of global equity research at Bel Air Investment Advisors, told Dow Jones Newswires.
Investors are looking to the release on Tuesday of US economic reports, including the third estimate of third-quarter gross domestic product and durable goods orders for November.
Economists surveyed by the Wall Street Journal expect the agency to say the US economy grew at a seasonally adjusted 4.3 percent in the July-September quarter, up from its previous estimate of 3.9 percent.
The US dollar was at 120.14 yen in afternoon Singapore trade, up slightly from 120.07 yen in New York on Monday.
The euro bought $1.2230 and 146.92 yen, against $1.2226 and 146.80 yen in US trade.
US benchmark West Texas Intermediate for February delivery gained 64 cents to $55.90. Brent crude for February was up 33 cents to $60.44 in afternoon trade.
Gold was at $1,179.53 an ounce, compared to $1,198.02 late Monday.
In other markets:
-- Manila rose 0.66 percent, or 47.05 points, to 7,186.32.
Victorias Milling Company Inc. gained 4.22 percent to 4.69 pesos.
-- Taipei edged up 2.71 points, or 0.03 percent to 9,097.71.
Taiwan Semiconductor Manufacturing Co was 0.72 percent lower at Tw$137.5, while Hon Hai Precision Industry fell 0.80 percent to close at Tw$87.3.
-- Wellington rose 0.19 percent or 10.36 points to 5,552.10
Fletcher Building was up 0.36 percent at NZ$8.28 and Trade Me rose 1.97 percent to NZ$3.63.
-- Mumbai fell 0.71 percent, or 195.33 points, to end at 27,506.46 points.
Sesa Sterlite eased 3.15 percent to 204.15 rupees, while National Thermal Power Corp gained 2.88 percent to 142.80 rupees.
-- Bangkok lost 0.37 percent, or 5.66 points, to 1,531.17
Coal producer Banpu fell 1.87 percent to 26.25 while Bangkok Bank rose 1.29 percent to 196.50.
-- Kuala Lumpur gained 5.0 points or 0.29 percent to 1,749.05.
Malayan Banking rose 1.36 percent to 8.96 ringgit, while AMMB Holdings rose 0.94 percent to 6.46. Telekom Malaysia fell 1.02 percent to 6.78.
-- Jakarta ended up 0.26 percent, or 13.30, at 5,139.07.
Car maker Astra International rose 2.11 percent to 7,275 rupiah, while Indah Kiat Pulp & Paper fell 0.95 percent to 1,040 rupiah.
-- Singapore rose 0.05 percent, or 1.55 points, to 3,332.51.
Agribusiness company Wilmar International fell 0.62 percent to Sg$3.21 while Singapore Telecom gained 0.51 percent to Sg$3.91.
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