Asian shares mostly lower on China woes

HONG KONG: Asian markets mostly fell on Tuesday owing to growing concerns about a liquidity crisis in China, although Shanghai managed to claw back some ground after sinking more than five percent at one point.

The dollar also lost its upward momentum against the yen after seeing a pull-back in New York following comments from US Federal Reserve officials indicating the bank would not immediately wind down its stimulus programme.

Tokyo fell 0.72 percent, or 93.44 points, to 12,969.34, Seoul lost 1.02 percent, or 18.38 points, to close at 1,780.63 and Sydney slipped 0.28 percent, or 13.1 points, to 4,656.0 -- it's lowest close in six months.

In the afternoon Shanghai was 0.60 percent lower, with bargain-hunting helping it bounce back from a second successive fall of more than five percent earlier in the day.

But Hong Kong added 0.49 percent.

With no other news to influence buying, the focus was on China, where investors have been spooked by a cash crunch in the financial system that has raised fears banks will cut back on loans, which could in turn drag on the economy.