Asian markets struggled for direction Thursday, as investors worried over euro-zone sovereign-debt problems.
In Japan, the Nikkei 225 Index inched up 1.51 points to 10,311.30
Hong Kong’s Hang Seng Index collapsed another 306.57 points, or 1.3%, to 22,668.
In Hong Kong, Ping An dropped 4.5% and Jiangxi was down 3.3%, while Dongfeng Motor Group Co. was down 2.2%.
In Tokyo, exporters were mixed, with Sony Corp. off 0.8% and Toyota Motor Corp. dropping 0.2%. Honda Motor Co. rose 1.3% and Canon Inc. gained 1.2%.
Real-estate and bank shares outperformed after the Bank of Japan said on Wednesday it bought 14.2 billion yen ($169-million U.S.) worth of exchange-traded funds under its new asset-purchase program.
Mitsubishi UFJ Financial Group rose 1.4%, while Mitsui Fudosan climbed 0.6% and Mitsubishi Estate Co. rose 0.6%. Aozora Bank surged 7.8% after Goldman Sachs initiated coverage with a Buy rating.
In Seoul, the market took a breather after rising for three consecutive sessions. Exporters and banks were lower, with Samsung Electronics Co. falling 0.6% and Hyundai Motor Co. dropping 2.5%, while KB Financial Group declined 1.9%.
Shares of Hyundai Group’s affiliates jumped as the group’s bid to buy a controlling stake in Hyundai Engineering & Construction suffered a setback. A legal adviser told the stake sellers late Wednesday that the latest financing document from the conglomerate was inadequate. Hyundai Merchant Marine jumped 6.4% and Hyundai Elevator surged 11.9%, while Hyundai Engineering added 2.9%.
The euro rebounded against the U.S. dollar after falling sharply on Wednesday on Moody’s stance on Spain’s sovereign ratings.
In Sydney, shares of Virgin Blue Holdings rose 5.9%, after Australia’s competition watchdog granted conditional approval to the carrier’s proposed alliance with Air New Zealand, reversing an earlier decision to block the deal. A proposed arrangement between Virgin and Abu Dhabi’s flag carrier Etihad Airways, which received interim regulatory approval this year, was also granted draft approval by the Australian Competition and Consumer Commission.
In Wellington, Air New Zealand advanced 1.4%.
Shares of Australian oil and gas company Santos rose 2.9% after the South Korean government said Korea Gas Corp. plans to sign a 20-year contract to buy 3.5 million metric tons a year of liquefied natural gas from Australia’s Gladstone LNG project starting from 2015. Santos is the project’s operator.
The single currency was fetching $1.3250 U.S. from $1.3210 U.S. in late New York trade on Wednesday and 111.39 yen from ¥111.35. The U.S. dollar was buying ¥84.05, compared with ¥84.23.
CHINA
Chinese stocks slipped on lingering worries about monetary-policy tightening by Beijing
The Shanghai’s CSI 300 Index gave back 16.98 points, or 0.5%, to 3,230.67
After markets in the region closed, Standard & Poor’s lifted China’s long-term credit rating to AA-minus from A-plus, saying the government had deftly handled the financial crisis and that a higher rating reflected the nation’s improved fiscal position and growth prospects.
In China, stocks continued to reflect persistent concerns about further tightening measures from Beijing after policy makers last week raised banks’ reserve requirement ratio for the sixth time this year to curb an overheating economy and inflation that recent hit a new two-year high.
Financial, metal and automobile stocks were hit, with Ping An Insurance Co. losing 2.9%, SAIC Motor Co. dropping 2.7% and Jiangxi Copper Co. down 2.5% in Shanghai.
In other markets
Singapore’s Straits Times Index edged ahead 0.47 points to 3,147.67
Korea’s Kospi Index stumbled 8.24 points, or 0.4%, to 2,009.24
Taiwan’s Taiex Index gained 25.49 points, or 0.3%, to 8,782.20
New Zealand’s NZX 50 Index slid 4.15 points, or 0.1%, to 3,293.78
Australia’s S&P/ASX 200 Index was 16.20 points, or 0.3%, higher to 4,784
