Japanese stocks finished lower at the end of an eventful and volatile trading session Friday, with banks such as Mizuho Financial Group advancing, while Toyota Motor Corp. and energy-related shares extended losses.
The benchmark Nikkei 225 index fell 78.7 points or 0.9% to finish at 8,588.5 while In Hong Kong, the Hang Seng Index ended 2.4% lower at 15,127.51.
The Bank of Japan's Board of Governors voted to trim the overnight call rate by 20 basis points to 0.10%, the BOJ said on Friday at the conclusion of its two-day monetary policy meeting in Tokyo. The rate cut was approved by a vote of 7 to 1, with only board member Tadao Noda voting against the action. The rate cut is the bank's first since October 31, when the bank lowered rates by 20 basis points from 0.50%.
In other economic news, the Ministry of Economy, Trade and Industry said that an index measuring all industrial activity in Japan eased 0.5% on month in October, but came in above analyst expectations for a 0.8% monthly decline, following the revised flat reading in September. The original reading saw a 0.1% monthly drop.
Meanwhile, the Cabinet Office said Friday that the Japanese government has downwardly revised its estimate for gross domestic product for the fiscal year ending March 2009. The government now forecasts the nation's economy to shrink 0.8%, down from its earlier estimate of 1.3%. The report also forecast no GDP growth at all for the fiscal year ending March 2010 - marking the first fiscal year of no growth in seven years - adding that deflationary pressures were likely to appear in that time.
Banks finished higher, but off the day's highs after the central bank cut its key interest rate. Mitsubishi UFJ Financial Group gained 3.3%, Mizuho Financial Group added 1.1%, and Sumitomo Mitsui Financial Group advanced 1.8%. In the property sector, Mitsubishi Estate fell 2.9%, but Mitsui Fudosan rose 3.9%.
Exporters were mixed, with Honda Motor falling 1.0%, Toyota Motor losing 2.0%, Komatsu shedding 4.5%, Nissan Motor declining 2.6%, Sony adding 0.3%, and Canon advancing 0.7%. Among high-tech stocks, Kyocera and TDK Corp plummeted 3.4% each and Advantest dropped 2.7%.
Oil and gas miner Inpex Holdings plunged 5.9% and Nippon Mining Holding shed 2.9%. Among other commodity-related stocks, Mitsubishi Corp. fell 3.3% and Mitsui & Co. lost 2.4%.
CHINA
The Chinese stock market closed higher for a fifth day, led by airline stocks. While a cut in government-set fuel prices boosted the airline sector, banks fell after an expected interest rate cut did not materialize. The benchmark Shanghai Composite Index closed up 2.8 points or 0.1% at 2,018.5 and the Shenzhen Composite Index for China's smaller second exchange added 0.9% to 622.9.
In currency trading, China's yuan weakened to 6.8380 a U.S. dollar in over-the-counter trading, down from Thursday's close of 6.83410.
Air China gained 1.1%, China Eastern Airlines jumped 4.9%, and China Southern Airlines rose 2.8%. China Petroleum & Chemical Corp. edged up 0.1%. Banks closed lower, with Industrial & Commercial Bank of China falling 1.0%, Bank of China declining 0.9%, and China Construction Bank losing 1.2%.
Elsewhere:
Taiwan's Taiex ended flat at 4,694.
Indonesia's Jakarta Composite Index dropped 0.3% to 1,348.
Malaysia's KLCI closed down 4.1 points at 876.
Singapore's STI slipped 0.2% to 1,795.
New Zealand's NZX 50 index lost 1.9% to 2,655.31.
Australia's S&P/ASX 200 finished up 1% at 3,615.70.
with files from other wire services
