Shares in Tokyo declined on Tuesday after the previous session's holiday as investors considered the International Monetary Fund's (IMF) warning that the global recovery was stalling.

However shares in Hong Kong pushed ahead after reports that the People's Bank of China had injected around $42bn of liquidity via reverse repurchase agreements in an effort to ease monetary conditions and support growth.

The benchmark Nikkei 225 index closed down 93 points at 8,769 while the broader Topix index fell 1.3%. The Hang Seng advanced 112 points at 20,937.

The IMF said the global recovery was weakening and added that the risk of further deterioration in the economic outlook was "considerable". Growth forecasts for China and Japan, as well as many other economies, were lowered as exports weaken and investment growth slows.

In Tokyo car makers came under pressure with shares of Toyota down 1.5%, Honda swerved 2.5% off course while Nissan sagged 2%. Suzuki lost 2%.

Banks in Hong Kong raced ahead after the policy support from Beijing. Shares of Industrial & Commercial Bank of China were up 1.6% while Bank of China added 0.34%. HSBC increased 0.07% while Bank of Communications rose 3.4%.

Oil plays also powered ahead with shares of PetroChina rising 2.62% and Cnooc up 0.78% as crude oil futures rose above $90 a barrel.



CJ

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