Asian stock markets were mostly higher Wednesday, as investors took a rate hike from China’s central bank in stride, while gold plays around the region gained as the metal’s price touched a record.
The Nikkei 225 Index dropped 31.18 points, or 0.3%, to 9,584.37
Japanese stocks fell as concerns about the pace of recovery after the March 11 earthquake and tsunami continued to weigh.
Tokyo Electric Power Co., the operator of the stricken Fukushima Daiichi nuclear power plant, slumped 6.9% to its lowest close on record despite news that the uncontrolled leakage of highly radioactive water into the ocean from a cracked concrete pit at its No. 2 reactor had stopped.
Among exporters, Canon Inc. rose 0.6% while NEC Corp. fell 1.2%.
Toyota Motor Corp. rose 0.2% after reports it will restart most of its domestic factories as early as next week. The stock’s gains were capped, however, after Moody’s said it has put the company’s debt ratings on review for a possible downgrade.
Hong Kong’s Hang Seng Index jumped 134.47 points, or 0.6%, to 24, 285.10
In Australia, Newcrest Mining Ltd. climbed 2.9% and Tokyo-listed Sumitomo Metal Mining Co. gained 0.5%. Zijin Mining Mining Group Co.’s Hong Kong-listed shares rose 3.8%.
In Korea, Samsung Electronics Co. was down 2.3%, hurting the broader market, amid concerns the heavyweight would report lower-than-expected first-quarter operating profit Thursday.
In foreign-exchange markets, the yen lost ground against the U.S. dollar and the euro as the carry trade reemerged. Other factors include recent hawkish comments from Federal Reserve officials as well as expectations the European Central Bank will lift interest rates at its policy meeting on Thursday.
The dollar was at Y84.99, from Y84.86 in late New York trade Tuesday, while the euro was at Y121.52, against Y120.73 and $1.4294 compared with $1.4224 U.S.
CHINA
Shares in China rose, with insurers up on expectations the rate hike would boost investment income. Banks were higher on expectations the rate rise would help net interest margins.
Shanghai’s CSI 300 Composite Index returned from vacation to gain 38.34 points or 1.2%, to 3,311.07
Ping An Insurance Group Co.’s Hong Kong hares added 2% and Bank of China Ltd.’s Hong Kong shares gained 1.1%.
The People’s Bank of China raised interest rates by 0.25 percentage point, to 3.25% for one-year deposits in local currency, and 6.31% for one-year loans.
The move, effective Wednesday, marks the fourth increase in less than six months and follows a spate of other tightening measures, including reserve-requirement increases and efforts to curb bank lending and cool the property market.
While markets had been widely expecting the hike, the timing was somewhat of a surprise and suggests Chinese inflation, which some thought had peaked, may have turned up again after slipping to 4.9% in January and February from 5.1% in November.
In other markets;
Korea’s Kospi Index slipped 3.72 points, or 0.2%, to 2,126.71
Taiwan’s Taiex Index progressed 146.85 points, or 1.7%, to 8,851.98
Singapore’s Straits Times Index picked up 23.58 points, or 0.8%, to 3,170.33
New Zealand’s NZX 50 deducted 19.50 points, or 0.6%, to 3,449.88
Australia’s S&P/ASX 200 tacked on 12.80 points, or 0.3%, to 4,912.90
