Asian markets ended on a mixed note Tuesday, with Alcoa's disappointing earnings weighing on the region's materials shares, while hopes for strengthening economic recovery fueled gains for shipping stocks in China.
Tokyo markets returned from a long weekend on the right foot, as the Nikkei 225 Index jumped 80.82 points or 0.8% to 10,879.14.
Hong Kong’s Hang Seng Index eased back 84.88 points, or 0.4%, to 22,326.64.
Shares of shipping companies surged in Hong Kong as well as Shanghai after strong recent Chinese trade data. China Cosco Holdings Co. jumped 5.4% and China Shipping Development Co. gained 2.1% in Shanghai; in Hong Kong, China Cosco added 1.6% despite the broad market weakness.
Results from aluminum maker Alcoa weighed on resources plays. After Wall Street's close Monday, the company posted earnings, excluding charges, of one cent U.S. per share for the fourth quarter, compared with expectations for five cents. Alcoa shares lost 5.3% in after-hours trade.
Among aluminum plays, Australia's Alumina, which is a joint-venture partner of Alcoa, dropped 4.9%, with Citigroup saying it sees a potential risk to its earnings forecast. Shares of Aluminum Corp. of China shed 2.4% in Hong Kong
Japanese steel makers advanced after the Nikkei newspaper reported the country's four major steel makers are expected to increase their combined overseas production capacity nearly fourfold by 2020, a shift driven by the saturation of the domestic market and the rising value of the yen.
JFE Holdings added 3.6%, Nippon Steel Corp. soared 5.1% and Sumitomo Metal Industries advanced 5.6%.
In Sydney, CSR added 4.3% after China's Bright Food expressed interest in buying the company's sugar and renewable energy business for up to 1.5 billion Australian dollars ($1.39 billion U.S.), a sign China's investment interests in Australia are diversifying beyond the energy and mining sectors.
In Tokyo, Japan Airlines shares plunged 44.8% on concerns the carrier might file for bankruptcy protection, with local media reporting the government may de-list the stock.
Japanese auto makers advanced with Toyota Motor Corp. rising 3.9% after senior executive Yoshi Inaba said Monday the company expects the rebound in U.S. vehicle sales to be moderate this year but to accelerate the next two years. Honda Motor added 4.1%, while Mazda Motor Corp. rose 2.6%.
In Seoul, Hanwha Securities dropped 7.1% after the company said it may consider a rights issue to raise funds to buy U.S.-based Prudential Financial's Korean brokerage and asset management arms.
A Hanwha Group spokesman said Hanwha Securities had submitted a bid to buy Prudential Investment & Securities and Prudential Asset Management, and was now conducting preliminary due diligence.
Elsewhere:
The Shanghai 300 Composite Index added 52.86 points, or 1.5%, to 3,534.92.
Korea’s Kospi Index was 4.52 points, or 0.3%, higher to 1,698.64
Taiwan’s Taiex index slipped 14.45 points, or 0.2%, to 8,309.47
Singapore’s Straits Times index subtracted 17.42 points, or 0.6%, to 2,916.11
New Zealand’s NZX Index slid 13.46 points, or 0.4%, to 3,209.29
Australia’s S&P/ASX 200 retreated 51.20 points, or 1%, to 4,899.50.
