Tokyo shares slide after US holiday
Tokyo stocks drifted lower as investors awaited fresh news after a US market holiday for Thanksgiving.
The benchmark Nikkei 225 index opened nearly flat then inched down 0.29 percent, or 81.60 points, to 28,301.49 in early trade, while the broader Topix index slipped 0.24 percent, or 4.87 points, at 2,013.93.
Japanese shares appeared vulnerable to profit-taking following recent gains, but also benefited from broad support after some European markets advanced overnight.
The dollar stood at 138.63 yen, little changed from 138.39 yen in London. "Today it will be key to see if the Nikkei can maintain the stability it displayed until yesterday, given current conditions which are conducive to profit-taking," Monex said in a note.
The brokerage added that the Tokyo market lacked fresh trading incentives after the US holiday.
Investors remain focused on the speed and scale of US rate hikes, while rising Covid-19 case numbers in China also pose nagging worries.
"The recent spike in infections is a real test for Chinese leaders," said Rodrigo Catril of National Australia Bank. "Though no city-wide lockdowns have been announced, the widespread restrictions are increasingly paralysing economic activities," he added.
Shortly before the opening bell, government data showed that inflation in Tokyo's core urban region was up 3.6 percent in November, the sharpest rate of increase in four decades. The capital's inflation rate is regarded as a leading indicator for national trends.
Among major shares, SoftBank Group added 0.51 percent to 6,095 yen. Energy developer Inpex added 1.04 percent to 1,552 yen. Tyremaker Bridgestone lost 2.33 percent to 5,202 yen. Industrial robot maker Fanuc fell 0.51 percent to 20,640 yen.
Sony Group fell 0.43 percent to 11,640 yen. China's central bank conducted 8 billion yuan (about 1.12 billion U.S. dollars) of reverse repos to maintain liquidity in the banking system. The interest rate for the seven-day reverse repos was set at 2 percent, according to the People's Bank of China.
The move aims to keep liquidity in the banking system reasonable and ample, the central bank said.
A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.
Thirty-eight people were killed and two were injured in a fire at a factory in central China, state media said Tuesday, with authorities blaming workers for illegal welding.
The fire broke out at a plant in Anyang City in Henan Province on Monday afternoon, news agency Xinhua reported.
Rescue services first received reports of a fire at 4:22 pm (0822 GMT) at Anyang Kaixinda Trading Co., Ltd, according to state media.
"After receiving the alarm, the municipal fire rescue detachment immediately dispatched forces to the scene," state broadcaster CCTV said.
It added that the fire was extinguished by around 11 pm local time.
Footage from the scene shared by CCTV showed thick plumes of black smoke from the fire, with at least two trucks in position to battle the flames.
In addition to the dead, two were sent to hospital with injuries that were not life-threatening, the state-run People's Daily said.
Authorities said
suspects" had been taken into custody in connection with the fire.
CCTV then reported, citing local officials, that a preliminary investigation had found the fire was caused by "electric welding in which workers violated safety measures."
According to data provider Tianyancha, Anyang Kaixinda Trading Co. is a wholesale trader dealing in machinery, building materials, non-hazardous chemicals, clothing and fire-fighting equipment.
Industrial accidents are common in China due to weak safety standards and corruption among officials tasked with enforcing them.
News of the Anyang City fire followed reports of an explosion at a chemical factory in nearby Taiyuan, the capital of Shanxi province, on Monday.
Videos posted on social media showed a fire at the industrial site spewing dense grey smoke into the sky.
Other images showed nearby buildings strewn with shards of glass and frightened locals fleeing the blast.
"Personnel were dispatched to the scene, the fire was extinguished, and the human toll is not yet known," Dahebao-an official daily based out of neighbouring Henan-reported on the Twitter-like Weibo platform, citing authorities.