Major Asian markets mostly fell Friday, with shares in Sydney dragged lower on worries that a strong Australian dollar would dent corporate earnings, while weak results from Samsung Electronics Co. held back stocks in Seoul.
Japanese markets were closed for a public holiday.
Hong Kong’s Hang Seng Index surrendered 84.82 points, or 0.4%, to 23,720.80
The broad regional decline came as investors were jittery heading into the Asian Labour Day weekend, with many regional markets closed Monday for the holiday and concerns China may raise interest rates again.
In Hong Kong, ICBC dropped 0.2%, Bank of China fell 1.2% and CCB gave up 0.3%.
The U.S. Federal Open Market Committee’s decision on Wednesday to end its $600-billion U.S. asset-purchase program -- also referred to as the second round of quantitative easing, or simply QE2 -- continued to be in focus, as investors mulled the impact of the Fed’s decision on Asia.
However, strategists at UBS Investment Research wrote in a report that the U.S. Federal Reserve’s decision to maintain the size of its balance sheet even after the end of QE2 -- by reinvesting proceeds from maturing securities -- would ease fears over liquidity in the region.
South Korean stocks, meanwhile, were also weighed by investors looking to take profits after the market hit record highs earlier in the week.
Shares of Samsung Electronics fell 0.8% after the technology heavyweight said its first-quarter net profit fell more than 30% from the year-earlier period. Its flat-panel and television businesses were disappointing as prices fell amid lackluster demand.
LG Electronics Inc. dropped 3.7% after the firm reported an unexpected loss for its first quarter on Wednesday.
Hyundai Motor Co. shed 1.6%, taking a breather after rising 7.3% Thursday in the wake of strong first-quarter results. Kia Motors Corp. dropped 3.5% despite posting a 91% rise in first-quarter net profit.
Some financial sector stocks rallied, however, after KB Financial Group Inc. and Woori Finance Holdings Co. posted better-than-expected first-quarter results Thursday. KB Financial jumped 5.1% and Woori climbed 4.3%.
Australian shares were dragged by the strength in the Australian dollar, after it hit a fresh 29-year high against the greenback of $1.0947 Thursday.
Exchange-rate-sensitive stocks were leading broad-based declines, with Fortescue Metals Group Ltd. dropping 3.6% and Brambles Ltd. falling 2.9%.
In Hong Kong, shares of Esprit Holdings Ltd. fell 3.3% after its fiscal nine-month revenue fell 3.1% from a year earlier, as strength in its Asian business failed to offset a sluggish performance in Europe.
In foreign-exchange markets, the U.S. dollar continued to slip against major currencies, although trading was muted as markets in Tokyo and London were shut for holidays, and also as many Asian markets are closed Monday.
The euro was at $1.4848 U.S. compared with $1.4822 U.S. in late New York Thursday, and at 121.01 yen versus ¥120.84. The dollar was at ¥81.51 against ¥81.52.
CHINA
However, the Shanghai index’s upside was expected to be capped in the near term "as concerns over inflationary pressures still linger," according to one expert.
Shanghai’s CSI 300 Composite Index advanced 30.95 points, or 1%, to 3,192.72.
The advance in Shanghai was led by stocks that were beaten down earlier in the week, with Anhui Conch Cement Co. rising 2.1%, Poly Real Estate Group Co. adding 1.8% and Jiangxi Copper Co. climbing 1.6%.
Some banks didn’t perform as well, as investors locked in gains ahead of the long weekend.
Three of the nation’s top four lenders reported better-than-expected first-quarter results on Thursday. Industrial & Commercial Bank of China Ltd., the nation’s largest lender by assets, fell 0.7% and Bank of China Ltd. dropped 0.3%, while China Construction Bank Corp. rose 0.4%.
In other markets;
Korea’s Kospi Index stumbled 15.99 points, or 0.7%, to 2,192.36
Taiwan’s Taiex Index removed 32.90 points, or 0.4%, to 9,007.87
Singapore’s Straits Times Index moved lower 5.13 points, or 0.2%, to 3,179.86
New Zealand’s NZX 50 grew 15.57 points, or 0.4%, to 3,519.33
Australia’s S&P/ASX 200 retreated 49.80 points, or 1%, to 4,823.20
