HONG KONG: Asian markets mostly slipped on Tuesday, with Hong Kong hit for a second successive day as a pro-democracy protest in the city showed no signs of letting up, while a measure of Chinese manufacturing came in below forecast.
Traders took their cue from a negative Wall Street, while Japanese shares were hit by a surprise fall in factory output and despite the yen's continued weakness against the dollar.
Hong Kong fell 1.10 percent, extending Monday's 1.90 percent losses, Tokyo retreated 1.13 percent and Seoul shed 0.60 percent, while Shanghai lost 0.10 percent and Sydney was flat.
In Hong Kong a second night of mass protests passed off peacefully on Monday, bringing relief after Sunday night saw police fire tear gas and pepper spray at protestors in the financial hub.
However, some of the city's key roads remained closed off, with the demonstrators refusing to move until Beijing agrees to its demands for full universal suffrage.
The campaign comes just as China's Golden Week holiday begins on Wednesday, when big-spending mainlanders visit the city's luxury stores.
However, while there are fears about the impact on the city's economy Laura Luo, head of Hong Kong and China equities at Baring Asset Management, said the effects of the stand-off on Hong Kong stocks would be limited.
"It is natural for investors to choose to take profit in an event like this, but any major market plunge may present a good entry point for long-term investors," she told Dow Jones Newswires.
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