Asian stocks were mixed Thursday, as traders stayed on the sidelines ahead of a speech from U.S. Federal Reserve Chair Janet Yellen that analysts said could provide clues about the central bank's next move.
The Nikkei 225 index in Tokyo faded 41.35 points, or 0.3%, to 16,555.95
In Hong Kong, the Hang Seng Index eased 5.83 points to 22,814.95
The Japanese yen traded at 100.42 against the U.S. dollar on Thursday afternoon, marginally weaker than Wednesday afternoon levels near 100.35.
Major Japanese exporters ended the session mixed. Shares of Toyota closed near flat, Nissan was up 1.1% and Sony shares reversed early losses to close flat.
In company news, Australian metals and mining company South32 reported earnings from continuing operations fell 76% on-year, due to weaker metal prices, in the year that ended June 30, 2016.
Underlying earnings came in at $138 million U.S. for the reporting period, compared with $575 million in the same time frame a year earlier. Media reports, however, said the underlying earnings managed to beat analysts' expectations of around $75 million U.S. for the company's first full year since it was spun out of BHP Billiton.
Revenue was down 25% at $5.81 billion U.S. for fiscal 2016, compared with $7.74 billion U.S. booked in fiscal 2015. The company said it would pay a final dividend of one cent per share.
South32 shares closed down 2%
Shares of Rio Tinto tumbled 1.5%, Fortescue was down 4% and BHP Billiton dropped 1.8%
Fortescue shares were under additional pressure after Credit Suisse downgraded the company to an underperform rating earlier in the week, citing the impact of the expected slowdown in Chinese steel production in October-November.
CHINA
The Shanghai CSI 300 docked 20.89 points, or 0.6%, to 3,308.97, dragged lower by a 2.2% decline in the property sector
Analysts attributed Thursday's selloff in Chinese markets to concerns over the amount of spare cash in the banking system as well as fears of an overheating of the property market.
Reuters reported on Thursday, citing banking sources, that the People's Bank of China (PBOC) has urged other banks to spread out the tenors of their loans in a bid to reduce the risks of short-term lending.
A day earlier, the Chinese central bank carried out open market operations by injecting cash through reverse repurchase (repo) agreements. The PBOC, on Wednesday, injected 90 billion yuan ($13.55 billion U.S.) into money markets through seven-day reverse bond repurchase agreements and for the first time since February an additional 50 billion yuan through 14-day reverse repos
Elsewhere, property stocks in China sold off notably, with Shenzhen-listed shares of Vanke closing down 1.9%, Gemdale off by 4.1% Shanghai Shimao down 0.9% and Poly Real Estate off 2.1%
In other markets
The Taiex Index in Taiwan regained 98.09 points, or 1.1%, to 9,115.47
In Korea, the Kospi index inched lower 0.84 points to 2,042.92
In Singapore, the Straits Times Index gained 7.36 points, or 0.3%, to 2,876.93
In New Zealand, the NZX 50 pulled ahead 16.98 points, or 0.2%, to 7,427.28
The ASX 200 subtracted 19.78 points, or 0.4%, to 5,541.89
