Asian trading overnight was dominated by a heavy tumble for Chinese shares .CSI300.SSEC which dropped almost 7 percent. It was their biggest fall since January but follows a 50 percent surge since March.
Regional investors
cited several major brokerages tightening requirements on margin
financing, which triggered fears of further regulatory steps to reduce
leverage in the red-hot market.
Next week will also see more than 20 initial public stock offerings by new companies.
"The brokerages are front running what the regulator wants to do," said Bernard Aw, an analyst at ING Markets in Singapore. "This is no longer an individual case, but an industry-wide campaign," added Zhang Chen, an analyst at Shanghai-based hedge fund Hongyi Investment.
Hong Kong shares .HSI plunged 2.3 percent too and Australian shares also fell with the S&P/ASX 200 index .AXJO losing 0.2 percent after weaker than expected business spending data.
Japan's Nikkei .N225 bucked the downtrend as the weaker yen helped the index log its 10th consecutive rise, the longest winning streak since February 1988 to notch another 15-year closing high.
The dollar hit its highest level against the yen since late 2002, rising as high as 124.30 yen JPY=, and was slightly higher on the day in Europe at 123.96.
But with it lower against the majority of major currencies, commodity prices rose. Oil recovered after a two-day slide, with Brent futures LCOc1 up 0.7 percent to $62.50 a barrel and U.S. crude CLc1 fetching $57.70 per barrel.
Gold was also higher at $1,190 an ounce having hit a two-week low of $1,183.76 in the previous session..
Next week will also see more than 20 initial public stock offerings by new companies.
"The brokerages are front running what the regulator wants to do," said Bernard Aw, an analyst at ING Markets in Singapore. "This is no longer an individual case, but an industry-wide campaign," added Zhang Chen, an analyst at Shanghai-based hedge fund Hongyi Investment.
Hong Kong shares .HSI plunged 2.3 percent too and Australian shares also fell with the S&P/ASX 200 index .AXJO losing 0.2 percent after weaker than expected business spending data.
Japan's Nikkei .N225 bucked the downtrend as the weaker yen helped the index log its 10th consecutive rise, the longest winning streak since February 1988 to notch another 15-year closing high.
The dollar hit its highest level against the yen since late 2002, rising as high as 124.30 yen JPY=, and was slightly higher on the day in Europe at 123.96.
But with it lower against the majority of major currencies, commodity prices rose. Oil recovered after a two-day slide, with Brent futures LCOc1 up 0.7 percent to $62.50 a barrel and U.S. crude CLc1 fetching $57.70 per barrel.
Gold was also higher at $1,190 an ounce having hit a two-week low of $1,183.76 in the previous session..
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