ASIA MARKETS: Asian Stocks Slide Ahead Of China Data Deluge

By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) -- Asian markets were jerked lower early Monday as a sharp rebound in the yen, a commodity-price slump and caution ahead of a slew of Chinese economic data pulled investors to the sidelines.

The Shanghai Composite traded 0.5% lower, and Hong Kong's Hang Seng Index gave up 0.8% ahead of the release of China's gross domestic product for the first quarter of 2013. Official monthly data on retail sales and industrial production, among others, were also scheduled.

Australia's S&P/ASX 200 lost 0.7%, and South Korea's Kospi shed 0.5%.

Japan's Nikkei Stock Average dropped 0.9% to 13,357.88.

The U.S. Treasury on Friday warned Japan not to actively weaken its currency. The yen rebounded sharply after the remarks, with the U.S. dollar (USDJPY) dropping below Yen98.50 on Monday, versus Yen98.92 in the U.S. late on Friday and Yen99.73 just ahead of the Tokyo market's Friday open.

"Currency wars are back on the agenda as U.S. and Europe 'remind Japan of its pledge not to drive down its currency,'" said Evan Lucas a market strategist at IG Markets. "The inverse correlation between the yen/Nikkei [Average] is almost ironclad, and will add to the downward pressure regionally."

In Tokyo trading, Honda Motor Co. (HMC) gave up 1%, Hitachi Ltd. also shed 1% and Bridgestone Corp. (BRDCY) declined 1.6% on the local currency's rise.

On the upside, a report Saturday in the Nikkei business daily that Sharp Corp. (SHCAF) would unload its more than 9% stake in Pioneer Corp. (6773.TO) helped lift both firms' shares significantly, with Pioneer stock jumping 8.6%, and Sharp soaring 18.5%.

Commodity stocks in the region were hit particularly hard Monday after gold futures slumped to hit their lowest level in 21 months in the U.S. on Friday, accompanied by declines in other commodities.

BHP Billiton Ltd. (BHP) slid 2.3%, and Newcrest Mining Ltd. (NCMGY) plunged 6.8% in Sydney.

In Hong Kong, Cnooc Ltd. (CEO) lost 3.1%, and Zhaojin Mining Industry Co. (1818.HK) gave up 6.8%, while in Shanghai, Zijin Mining Industry Co. (601899.SH) fell 4.4%, and Jiangxi Copper Co. (JIXAY) skidded 4.2%.

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