March 29, 2011 (Chinavestor) Chinese stocks traded sideways in Asia on Tuesday as oil retreated but tension in Japan rose. World leaders met in London to discuss post Gadhafi Libya, helping ease oil prices but the nuclear situation worsened in Japan es plutonium was found in multiple location of the wracked reactor. The Shanghai Composite Index (SHJA:000001) fell 25.6 points or 0.9% while the Hang Seng Index (INDEXHANGSENG:.HSI) shed 7.8 points or 0.0% in Hong Kong.The sell-off was broad in Shanghai, every sector fell but financials as fear from monetary tightening rose. But banking profits remained strong amid higher interest rates and fees.
Strong earnings from China Southern Airlines (NYSE:ZNH) failed to lift its H-shares (HKG:1055) and the rests of the sector.
China's largest airliner reported 18 times increase in earnings yet investors sold off the company. Some of the investors consumed by high oil prices while others figured some of the good news have already been incorporated into the stock price. China Eastern Airlines (HKG:0670) fell along the rest of the sector.
Most Chinese ETFs fell on Monday along with the DJIA. But that is about to change as most components of the iShares FTSE/Xinhua 25 China Index (NYSE:FXI) rose on Tuesday. Outlook is mixed with most of the components on the offensive in Asia this morning but index futures point to a lower open.
China integrated Energy (NASDAQ:CBEH) fell over 25% again, as more class action suits were filed against the company. Oversold China Automotive Tech (NASDAQ:CAAS) bounced back up while China XD Plastics (NASDAQ:CXDC) remained at bay before earnings later the week.