Asian shares sluggish amid China rate hike worries

TOKYO — Most Asian stock markets fell Tuesday, weighed by a stronger yen and concerns about a possible interest rate hike in China. Japan's Nikkei 225 stock average fell 0.7 percent to 10,101.63. Investors sold shares of Japanese exporters as the yen climbed against the dollar. A stronger yen reduces the value of exporters' overseas profits when repatriated. Sony Corp. was down 1.1 percent, while Honda Motor Co. fell 2.2 percent. Hong Kong's Hang Seng index lost 0.3 percent to 23,154.9, and the Shanghai Composite index shed 1.2 percent to 2,821.83 on speculation by Chinese media that Beijing may hike interest rates this weekend. Benchmarks in mainland Taiwan, Singapore and New Zealand also retreated. Bucking the trend, South Korea's Kospi rose 0.2 percent to 1,958.13, and Australia's S&P/ASX 200 added 0.4 percent to 4,705.4 thanks to buying into natural resource-related issues. Australian mining giant BHP Billiton Ltd. rose 0.6 percent, while rival Rio Tinto Ltd. added 1 percent. In New York on Monday, the Dow Jones industrial average fell 19.90, or 0.2 percent, to close at 11,362.19, breaking a three-day winning streak. Stocks spent most of Monday in a funk brought on by cautious comments about the economy from Federal Reserve Chairman Ben Bernanke. Hopes for a compromise on extending Bush-era tax cuts and unemployment benefits erased some of the losses. The broader Standard & Poor's 500 index lost 1.59, or 0.1 percent, to 1,223.12. The Nasdaq composite index rose 3.46, or 0.1 percent, at 2,594.92. In currencies, the dollar slipped to 82.38 yen from 82.67 yen late Monday. The euro stood at $1.3294 from $1.3304. — AP