Asian markets finished mostly lower Monday as investors took home some profits generated by recent stock advances, though Japanese shares were propped up by automakers such as Honda Motor Co. after President Bush approved loans to shore up U.S. automakers.
The benchmark Nikkei 225 Stock Average closed up135.3 points or 1.6% at 8,723.8 while Hong Kong's Hang Seng Index closed down 3.3% at 14,622.
On the economic front, the Ministry of Finance said in a report that Japan posted its second consecutive monthly merchandise trade deficit in November, led by the biggest ever decline in exports. The trade deficit totaled 223.42 billion yen compared to a deficit of 67.69 billion yen in October and a surplus of 85.68 billion yen in September. Exports fell 26.7% on year and imports declined 14.4%, the first decline since September 2007.
In other economic news, the Bank of Japan's monthly report of recent economic and financial developments showed that Japanese economic conditions are likely to deteriorate in the immediate future. Exports are expected to drop considerably due to the slowdown in global economies and the appreciation of the yen. Production is also forecast to decrease substantially.
Japan's supermarket sales rose 0.6% in November from a year earlier on a same-store basis, up for the first time in four months. Sales totaled 1.11 trillion yen, according to the Japan Chain Stores Association.
Exporters were mostly higher on dollar's strength against the yen. TDK and Tokyo Electron jumped 5.3% each, and Honda Motor added 5.4%.
Financial shares finished higher after the Bank Of Japan said Friday that it would purchase commercial paper and JGBs. Mitsubishi UFJ Financial Group gained 2.9%, Mizuho Financial Group climbed 4.0%, top brokerage Nomura Holdings surged up 7.6%, and Sompo Japan Insurance soared 9.2%.
Oil and gas miner Inpex Holdings rose 3..9%, but Nippon Mining Holding plunged 3.5%. Among other commodity-related stocks, Mitsubishi Corp and Mitsui & Co. added 0.5% each.
CHINA
Chinese stocks closed lower, led by property developers, as expectation for an interest rate cut over the weekend failed to materialize. The Shanghai Composite Index closed down 30.7 points or 1.5% at 1,987.8 after rising 3.3% last week. The expiry of share lock-up periods also added to the negative investor sentiment.
According to local media reports, 15.33 billion shares in 70 firms will become freely tradable this week due to the expiry of lock-up provisions either linked to initial public offerings or to reforms of companies' state shareholding structures.
China Pacific Insurance Group slumped 5.1% after the company said that around 1.58 billion of its shares would emerge from a lock-up period and become tradable on Thursday. Property developer China Vanke plunged 4.9%.
Oil refiner Sinopec dropped 3.1%, while index heavyweight PetroChina lost 1.4% amid news that fuel prices would be cut and that tax would be hiked.
Baoshan Iron and Steel, China's largest steel maker, fell 2.8% and Industrial & Commercial Bank of China shed 1.1%.
Among gainers, Jiangxi Copper rose 2.2% as base metals futures in Shanghai surged by their 4% daily limit, buoyed by emergency loan plans for U.S. automakers from the U.S. and Canadian governments.
Elsewhere:
Taiwan's Taiex plunged 3.4% to 4,535.
Indonesia's Jakarta Composite Index dropped 0.2% to 1,345.
Malaysia's KLCI closed down 3 points at 873.
Singapore's STI shed 2.8% to 1,745.
South Korea's Kospi slipped 0.1% to 1,179.61, reversing early gains.
New Zealand's NZX 50 index gained 0.9% to 2,679.75.
Australia's S&P/ASX 200 fell 1.6% to 3,557.40.
with files from other wire services
