Japanese stocks rose as Honda Motor Co. led exporters higher on a positive sales outlook and the euro’s recent appreciation against the yen, while in China stocks declined ahead of the Chinese New Year holiday next week.
Japan’s Nikkei 225 Index moved back up 70.59 points, or 0.7%, to 10,345.10
Hong Kong’s Hang Seng Index slipped 75.08 points, or 0.3%, to 23,801.80
The mixed performance came on caution ahead of the U.S. Federal Reserve’s policy announcement Wednesday, with persistent worries about further policy tightening from Beijing also continuing to weigh on sentiment.
In Tokyo, the euro’s rise against the yen Friday boosted exporters, with Nikon Corp. climbing 1.9% and Olympus Corp. rising 1.2%.
Honda Motor Co. jumped 3.8%, after Nomura Securities upgraded the stock to buy from hold, citing upwardly revised forecasts for profitability and growth at its North American business.
Among other gainers, Fuji Heavy Industries added 1.3% after a weekend report in the Nikkei newspaper that the firm is on track to achieve its profit target.
Kirin Holdings advanced 1.1% after the Nikkei reported the company will form a production and sales joint venture with Chinese brewer China Resources (Holdings) Co. as early as this year.
In Sydney, bargain buying in mining stocks after recent declines helped the market overcome a fall in Woolworths Ltd. after an earnings downgrade from the grocery and general-merchandise retailer.
Rio Tinto PLC rose 0.9% and BHP Billiton Ltd. climbed 0.5%. Woolworths fell 2.6% after lowering its guidance for full-year earnings growth to a range of 5% to 8% from its previous forecast of 8% to 11% growth, citing concerns about consumer-confidence levels, as well as costs associated with the recent New Zealand earthquake and Australian floods.
In currency trading, the euro eased slightly on profit taking after rising above $1.3600 against the U.S. dollar for the first time in two months on Friday, buoyed by a report showing German business confidence at a record peak.
The single currency also gave up the gains from early Asia trade, which came after European Central Bank President Jean-Claude Trichet said in an interview with The Wall Street Journal over the weekend that inflation pressures in the euro zone must be watched closely.
The currency was fetching $1.3570 from $1.3620 U.S. late in New York Friday, and 112.48 yen from ¥112.48. The dollar was at ¥82.90, compared with ¥82.57.
CHINA
Metals-related companies led the fall in China as investors took profits on recent gains, and as strong cash demand ahead of the week-long holiday kept investors from buying stocks. The drop came amid wide expectations that the People’s Bank of China may announce its first rate hike this year around the Lunar New Year holiday.
Shanghai’s CSI 300 Index subsided 29.22 points, or 1%, to 2,954.23.
Shares of Yunnan Copper Co. dropped 2.4% and Chenzhou Mining Group Co. tumbled 3.8% in Shenzhen, while Jiangxi Copper Co. gave up 2.7% and Aluminum Corp. of China lost 1.7% in Shanghai.
In other markets
Korea’s Kospi Index added 12.24 points, or 0.6%, to 2,082.16
Taiwan’s Taiex Index retreated 6.59 points to 8.947.79
Singapore’s Straits Times Index inched up 1.16 points to 3,185.76
New Zealand’s NZX 50 slid 0.06points to 3,352.66
Australia’s S&P/ASX 200 Index progressed 30.30 points, or 0.6%, to 4,786
