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Asia markets mixed as Nikkei falls again email this discussion to a friend?

By JEREMIAH MARQUEZ
AP Business Writer
 
2 months ago

HONG KONG (AP) - Asian markets were mixed Friday as investors digested uneven readings on the U.S. economy and more record oil prices. Japan posted its 12th straight day of losses.


Indonesia's main index rebounded after selling off nearly 4 percent the prior session. Hong Kong and Australia equities also were higher.


With stocks hit hard recently, some investors were returning to the market. Others who bet on falling prices were starting to take profits, further supporting prices.


"Investors are still bearish, we've been down a lot in the past few weeks. But even those bears are a bit hesitant on selling at this level," said Y.K. Chan, fund manager at Phillip Capital Management in Hong Kong.


Elsewhere, markets in mainland China, South Korea and Malaysia lost ground.


Investors got little guidance from the U.S. overnight after a mixed assessment on the world's largest economy. While the country's service sectors shrunk, a tame jobs report eased some worries about the labor market.


Oil continued trading at lofty levels, however, with a barrel of light, sweet crude for August delivery trading near $145 late afternoon in Asia. The contract hit a record trading high at $145.85 a barrel Thursday on the New York Mercantile Exchange.


In Tokyo, the benchmark Nikkei 225 Stock Average closed 0.2 percent lower at 13,237.89 points, dragged down by technology and airline stocks. The index's12-day losing streak represents its longest since 1954.


Hong Kong's blue-chip Hang Seng Index climbed nearly 0.9 percent to 21,423.82 points.


Financials help lift the market amid reports that Industrial and Commercial Bank of China, the country's biggest lender, expected net profit to rise 50 percent in the first half. ICBC climbed 2 percent. Standard Chartered was up 4.2 percent.


Telecoms, seen by some analysts as a safer play during periods of high inflation, rose. China Netcom was up almost 4 percent and its suitor, China Unicom, gained 2.1 percent.


Hong Kong rose despite weakness in mainland China, where the key Shanghai index skidded 1.2 percent to 2,669.89 points.


Chinese coal shares fell on fears of a possible coal resource tax revenue plan, which could be announced this weekend.


One of the day's worst-hit stocks was coal producer China Shenhua Energy Co., which closed down 8.1 percent. China Coal Resources dropped 7.9 percent. Xishan Coal and Electric Corp. plunged by 10 percent, the daily limit.


Most institutional investors remain worried about the big picture, said Fan Zejie, an analyst for Shanghai Leading Investment and Consulting Co. Ltd.


"There are too many uncertainties in the next half-year, like inflationary pressures brought by natural disasters, the management of non-tradeable shares and the high production prices of raw materials," Fan said.


In Indonesia, the Jakarta composite index was up 0.7 percent, led by coal companies and banks.


The dollar was virtually flat against the yen at 106.75.


U.S. financial markets will be closed Friday for the country's July 4th Independence Day holiday.



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