Japanese shares gave up early gains to end lower as investors fretted about corporate outlooks in the wake of the March 11 disasters.
The Nikkei 225 Index gave back 10.25 points, or 0.1%, to 9,671.96
Transaction volumes remained light in some markets as many traders were away for the Easter holiday. Markets in Hong Kong, Australia and New Zealand were closed.
The Japanese stock market failed to maintain its early momentum despite some positive earnings-related news. Komatsu Ltd. rose 0.4% on a Nikkei report it was expected to post a 30% rise in group operating profit for the current fiscal year ending March 2012.
Shares of Fanuc Ltd. fell 1.3%, extending Friday’s losses after Barclays Capital cut its rating on the stock to "equal-weight" from "overweight," citing likely earthquake-related supply disruptions.
Yahoo Japan Corp. gained 3.4% after the company provided a bullish forecast for the fiscal first quarter ending in June.
Tokyo Electric Power Co., the owner of the stricken Daiichi Fukushima nuclear power plant, surged 8.4% after local media reported the government is arranging to help the company pay for damages incurred from the nuclear accident.
Bank of Japan governor Masaaki Shirakawa said in an interview with the Wall Street Journal and Dow Jones on Friday that the central bank was expecting Japan’s economy to shrink in the first and second quarters.
The comments may be aimed at easing any possible shock to markets Thursday, when the central bank releases its semi-annual "outlook report" in which participants expect the BOJ to lower its gross domestic product forecast, according to one expert.
That outlook should support the dollar against the yen amid a bearish view for the greenback due to fading expectations of an early credit tightening by the Fed, he said.
In Seoul, auto shares helped to boost the market on expectations of strong first-quarter earnings. Hyundai Motor Co. jumped 5.6% and Kia Motors Corp. climbed 3.2%. Auto parts maker Hyundai Wia Corp. spiked 14.7%.
Hana Financial Group Inc. lost 4.3%, however, on worries its 4.69 trillion won ($4.24 billion U.S.) offer to buy a 51% stake in Korea Exchange Bank from Lone Star Funds might be in jeopardy.
An official at South Korea’s Financial Services Commission said it is still reviewing whether Lone Star was qualified to be a KEB shareholder and it is "unclear" whether the regulator will even discuss the matter at a key meeting Wednesday. KEB’s shares slipped 1.0%.
In foreign-exchange markets, the yen lost ground against the dollar and the euro. But activity was muted, with trading centers in Hong Kong and London shut Monday. Many traders were also sidelined ahead of the U.S. Federal Reserve’s policy meeting this week and Fed Chairman Ben Bernanke’s first-ever live press conference following its policy announcement Wednesday.
The dollar was at 82.01 yen from ¥81.87 late Friday in New York, while the euro was at ¥119.63 from ¥119.31, and at $1.4589 U.S. from $1.4558 U.S.
CHINA
Chinese stocks fell Monday on concern Beijing may continue to tighten its monetary policy.
Shanghai’s CSI 300 Composite Index slid 50.37 points, or 1.5%, to 3,249.57
The fall in Shanghai came as Nymex crude-oil prices remained above $110 U.S. a barrel, posing a challenge to policy makers’ efforts to cool inflation on the mainland.
Shares across most sectors declined, with property developers, metal producers and automobile stocks among those hit. Poly Real Estate Group Co. fell 2%, Aluminum Corp. of China Ltd. sank 3.2% and Anhui Jianghuai Automobile Co. slid 3.1%.
In other markets;
Korea’s Kospi Index picked up 18.18 points, or 0.8%, to 2,216
Taiwan’s Taiex Index settled 18.68 points, or 0.2%, to 8,950.75
Singapore’s Straits Times Index dipped 7.01 points, or 0.2%, to 3,187.72
