China shares finished the week on a volatile note, with Shanghai jumping more than 2% for the second day in a row, while Japan hit a two-week low amid concerns about earnings results.
In Japan, the Nikkei 225 dumped 232.89 points, or 1.2%, to 19,652.88, on increased profit-taking and heightened concerns over forthcoming earnings results.
In Hong Kong, the Hang Seng index surrendered 86.59 points, or 0.3%, to 27,653.12, totaling a 1.4% gain for the week.
Enthusiasm for Hong Kong shares was cooling after the Hang Seng rose nearly 8% last week, helped by record buying from mainland investors through a trading link with Shanghai.
One expert said investors in Hong Kong remain excited about the potential for mainland investment flows. Credit Suisse estimates that mainland mutual funds could gradually invest up to 184 billion yuan ($29.8 billion U.S.) in Hong Kong once they are set up to use a trading link to access the market via Shanghai.
In Japan, Sharp Corp. led major market drivers, falling 5.7% after a Nikkei business daily report said that the firm has reached a broad agreement with two of its major creditors to receive some ¥200 billion via a debt-for-equity swap (DES), which could end up being highly dilutive to its common stock.
In earnings news, McDonald’s Holdings Co. (Japan) fell 0.5% after it said it expects a net loss of ¥38 billion ($318.8 million U.S.) — its worst result since listing in 2001 — for the current business year. CEO Sarah Casanova announced plans to renovate 2,000 of its 3,000 franchises over the next four years, close 131 unprofitable locations by year-end and cut 100 staffers through an early retirement program.
Australian stocks finished down, leaving the index 1.5% lower for the week. The market began trading Friday in negative territory on a mix of fears of a Greek default as the clock ticks down on a deal between the nation and its creditors, and following what traders said was a soft lead from Wall Street’s overnight trading.
CHINA
The Shanghai CSI 300 hiked 82.59 points, or 1.8%, to 4,596.14, as local investors rushed into stocks of large cap firms. By contrast, small cap Chinese stocks sold off.
In other markets
In Singapore, the Straits Times Index dipped 6.42 points, or 0.2%, to 3,525.18
The Kospi index in Korea gained 3.60 points, or 0.2%, to 2,143.50
In Taiwan, the Taiex index slid 85.94 points, or 0.9%, to 9,570.93
In New Zealand, the NZX 50 moved downward 20.28 points, or 0.3%, to 5,861.48
In Australia, the S&P/ASX 200 faded 69.60 points, or 1.2%, to 5,877.87
