Asian indexes ended mixed after volatile trading Tuesday, with Japanese shares ending higher on late buying in automakers such as Honda Motor Co. and Australian stocks closing lower after home mortgage firm RAMS Home Loans Group said turmoil in global credit markets could hit its earnings.
In Tokyo, Nikkei 225 index added 44.56 points, or 0.27 percent, to close at 16,844.61 while in Hong Kong, the blue chip Hang Seng Index rose 116.22 points, or 0.53 percent, to 22,007.32.
Some investors sought bargains in trading houses, shipping companies and steel makers. Many were nervous due to worries about U.S. credit market problems and the possible impact on the U.S. economy.
The Bank of Japan's decision to drain funds from financial markets earlier Tuesday relieved some of those worries. Investors saw it as a sign that Japan's liquidity concerns may be smaller than in the U.S. and Europe, traders said.
The BOJ drained 1.6 trillion yen (US$13.5 billion; euro9.9 billion) of funds from money markets to curb a drop in its unsecured overnight call-loan rate. The amount drained Tuesday was the same as what the BOJ injected Friday and Monday.
Trade was slow, however, with many investors away for a Buddhist holiday week.
Trading houses Itochu and Marubeni were among Tuesday's winners, up 6.9 percent and 5.4 percent respectively. Among shipping companies, Nippon Yusen rose 3.4 percent, Mitsui O.S.K added 4.6 percent and Kawasaki Kisen closed up 4.3 percent.
ELSEWHERE:
MANILA: Philippines shares fell Tuesday in heavy volume as jittery investors unloaded stocks to lighten their portfolios. The 30-company Philippine Stock Exchange Index fell 0.1 percent to 3,263.56.
TAIPEI: Taiwan shares fell slightly Tuesday on weakness in the U.S. and South Korean markets. The Weighted Price Index of the Taiwan Stock Exchange dropped 27.97 points, or 0.3 percent, to close at 8,910.99 points.
WELLINGTON: New Zealand's NZX 50 fell 0.1% to 4,065.68.
SYDNEY: Australia's S&P/ASX 200 index ended 0.8% lower at 5,964.80, off its session lows of 5,938.70.
With files from wire services
