Asian markets were mixed Wednesday, with the Tokyo and Seoul markets finishing lower but staging recoveries from early selloffs on hopes that regional tensions will be short-lived.
In Japan, traders returned from holiday to send the Nikkei 225 Index lower by 85.08 points, or 0.8%, to 10,030.10, after falling as much as 2.1% during the session
Hong Kong’s Hang Seng Index regained 127.72 points, or 0.6%, to 23,023.90, after Tuesday’s 600-point-plus loss took the index below 23,000.
Sentiment initially took a hit as many Asian investors got their first chance to react to Tuesday’s North Korean artillery attack on a South Korean island. But buying quickly picked up as concern that the conflict might escalate receded.
In Seoul, some big-cap stocks reversed early losses, while foreigners also bought into beaten-down stocks, suggesting that offshore investors were discounting geopolitical risks.
Foreign investors were net buyers on the Korean bourse, picking up 19.4 billion won ($16.9 million U.S.) of shares, easing concern that the exchange of fire between the Koreas might prompt investors to aggressively repatriate funds.
SK Energy Co. closed up 0.3%, LG Display Co. tacked on 0.2% and Posco gained 1.1%.
Hana Financial Group Inc. added 7.3%, extending Tuesday’s 5.7% rise, after its board approved the purchase of a 51% stake in Korea Exchange Bank.
After a holiday Tuesday, the Japanese market resumed trading, cutting its losses by the close.
The market was weighed down by exporters as the euro extended its decline on continuing concern that Ireland’s debt problems may spill over to other eurozone countries.
Among exporters, Olympus Corp. fell 0.6%, Nikon Corp. shed 2.9% and Canon Inc. lost 0.9%. But Elpida Memory Inc. gained 1.3% by the close after earlier weakness.
Shinsei Bank Ltd. declined 1.3% after saying it will form operating alliances with Vietnam’s leading financial group, Bao Viet Holdings, and an Indian private-sector bank, Yes Bank.
Bucking the trend, Sojitz Corp. jumped 9.1% after reports that the trading house has agreed to obtain the right to buy about 8,500 tons of rare-earth metals, representing nearly 30% of annual demand in Japan, from Australia’s Lynas. Australia hasn’t exported any rare-earth metals to Japan since 2004, according to official data.
In Sydney, Lynas Corp. shares jumped 11%.
The Sydney market also closed off its session lows. Declines were led by the industrials and consumer-discretionary sectors, with Leighton Holdings Ltd. down 1.4%. But energy and materials companies attracted support after Tuesday’s selloff. BHP Billiton Ltd. shed 0.4% while Woodside Petroleum Ltd. tacked on 0.5%.
New Zealand Oil & Gas Ltd., which holds 29% of Pike River Coal Ltd., pared most of its early gains after New Zealand police said there was a second explosion at Pike River Coal’s mine and all the 29 trapped miners were dead. The stock, which slumped 29% on Tuesday after coming off a trading halt, rose 2.3% by the close.
The euro was trading at $1.3392 compared with $1.3369 U.S. late Tuesday in New York, and at 111.29 yen against the yen, compared with 111.19 yen. The dollar was at 83.09 yen compared with 83.16 yen.
CHINA
Banks led gains in China on bargain-buying, while Industrial & Commercial Bank of China Ltd.’s successful cash call lifted sentiment.
Shanghai’s CSI 300 Index chalked up 69.87 points, or 2.3%, worth of gain to close at 3,117.04
China Merchants Bank Co. closed up 1.2% and Industrial Bank Co. rose 2% in Shanghai.
Industrial & Commercial Bank of China said Tuesday it raised 33.67 billion yuan ($5.07 billion U.S.) from the Shanghai portion of its rights issue. The stock ended down 10% at 4.42 yuan in Shanghai.
In other markets
Singapore’s Straits Times Index inched up 10.71 points, or 0.3%, to 3,137.01
Taiwan’s Taiex Index surrendered 31.58 points, or 0.4%, to 8,297.05
New Zealand’s NZX 50 Index picked up 10.45 points, or 0.3%, to 3,269.22
Australia’s S&P/ASX 200 Index moved down 4.40 points, or 0.1%, to 4,584.70
