Asian stocks slide ahead of crucial Japan business survey, US jobs data; China off 3.3 percent

Asian stocks slide ahead of crucial Japan, US data

BANGKOK — Asian markets slid Tuesday as a mammoth share sale in China dragged Shanghai stocks down more than 3 percent and investors trimmed bets before the release of crucial indicators from the world’s two biggest economies.

Investors were wary of riskier assets like stocks following a fall on Wall Street Monday and dour Japanese economic data that could foreshadow weaker business confidence when the Bank of Japan’s “tankan” survey is released on Thursday.

Markets are also jittery about the U.S. employment report due Friday. Muted job creation in the world’s No. 1 economy would suggest an extended period of weak consumer spending that undermines Asia’s export-reliant economies.

The Shanghai Composite Index dived 3.3 percent to 2,451.17 as investors fretted that Agricultural Bank of China’s record-breaking initial public offering will draw money away from other stocks and depress prices overall. The IPO, which has separate listings in Hong Kong and Shanghai, is expected to raise $23.2 billion, making it the world’s largest.

“The market is facing a huge pressure on liquidity. It fell rapidly after a sluggish week because not much new capital is flowing in,” said Zhang Fan, analyst at Debon Securities in Shanghai.

Japan’s benchmark Nikkei 225 stock index lost 138.28 points, or 1.4 percent, to 9,555.83 and South Korea’s Kospi shed 1.3 percent to 1,708.65. Australia’s S&P/ASX 200 dropped 0.7 percent to 4,353.60.

Elsewhere, Hong Kong’s Hang Seng retreated 1.1 percent to 20,504.31, Taiwan was off 1 percent and Singapore tumbled 1.4 percent.

Sentiment was sluggish in Tokyo after government figures showed Japan’s economic recovery faltered in May as moderating export demand dented factory output, household spending fell and the jobless rate unexpectedly rose for a third straight month.

With few positive leads across Asia, investors were taking a cautious stance ahead of Thursday’s release of the Bank of Japan’s quarterly “tankan” survey of business sentiment and Friday’s U.S. jobs data.

In currencies, the dollar fell to 88.74 yen 89.36 yen in New York late Monday. The euro dropped to $1.2260 from $1.2275.

Benchmark crude for August delivery was down 78 cents at $77.52 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 61 cents to settle at $78.25 on Monday.

Associated Press researcher Bonnie Cao in Beijing contributed to this report.