Japanese stocks fell Friday as utilities declined on uncertainty over the future of the power sector, while Indian shares climbed as engineering major Larsen & Toubro Ltd. jumped for a second straight day after issuing a robust sales forecast.
In Japan, the Nikkei 225 average dipped 13.74 points, or 0.1%, to 9,607.08
Hong Kong’s Hang Seng Index gained 36.01 points, or 0.2%, to 23,199.40
In Tokyo, there were concerns over the size of Tokyo Electric Power Co.’s compensation to those affected by radiation leaks from its earthquake- and tsunami-hit Fukushima Daiichi nuclear-power plant, and over the loans owed by the utility to banks.
Uncertainty over issues ranging from a possible breakup of energy companies to problems in containing the nuclear crisis at Fukushima Daiichi nuclear-power plant also served to keep investors on edge.
Tepco itself ended 2.5% higher after a volatile session ahead of its annual results, but Tohoku Electric Power Co. lost 5.8%, and Chubu Electric Power Co. fell 4.7%.
At the end of the day’s trading, Tepco announced a record loss of 1.25 trillion yen ($15.3 billion U.S.) for the year ended March 31, crushed by charges related to the ongoing nuclear crisis.
Japanese banks also fell as investors fretted over loans they made to Tepco before the earthquake and tsunami, sending Sumitomo Mitsui Financial Group Inc. down by 2% and Mitsubishi UFJ Financial Group Inc. lower by 0.8%.
Earlier in the day, the Bank of Japan left its policy interest-rate target unchanged in a range between 0.0%-0.1%, as expected, and said it remains on guard against any downward pressure on the domestic economy in the wake of the earthquake.
Many regional markets struggled for direction during the session despite gains on Wall Street, with investors remaining cautious as commodity prices fell overnight and ahead of the weekend.
The decline in commodity prices weighed on many of the region’s resource stocks, with BHP Billiton Ltd. dropping 1.7% and Rio Tinto Ltd. falling 1.1% in Sydney. Inpex Corp. lost 4% in Tokyo and Aluminum Corp. of China Ltd. slid 0.6% in Hong Kong.
In Seoul, Hana Financial Group Inc. jumped 4.2% on news of a deal to extend the deadline for its proposed 4.69-trillion-won ($4.34 billion U.S.) acquisition of a 51% stake in Korea Exchange Bank.
In foreign-exchange markets, the U.S. dollar traded in tight ranges against the euro and the yen. Expectations of an interest rate hike from the European Central Bank in July supported the single currency against the dollar.
The euro was at $1.4330 U.S. from $1.4311 U.S. in late New York trade Thursday and at 116.94 yen from ¥116.82. The dollar was at ¥81.60 from ¥81.61
CHINA
Stocks in China ended little changed after moving within a narrow range during the choppy session.
Shanghai’s CSI 300 Composite Index added a mere 0.96 points to 3,121.60
Rare-earth-sector plays climbed after Beijing announced it would expand export quotas for the materials, with Inner Mongolia Baotou Steel Rare-Earth Group Hi-Tech Co. jumping 6%.
Uncertainty over China’s economic outlook proved to be an overhang on many other shares, including some in the property and automobile sectors. Shares of Gemdale Corp. fell 1.6%, while SAIC Motor Corp. shed 1.3%.
In other markets;
Taiwan’s Taiex Index dropped 55.85 points, or 0.6%, to 8,837.03
Korea’s Kospi index added 15.99 points, or 0.8%, to 2,111.50
Singapore’s Straits Times Index sidled back 4.02 points, or 0.1%, to 3,168.54
New Zealand’s NZX 50 inched higher by 8.45 points, or 0.2%, to 3,577.44
Australia’s S&P/ASX 200 erased 24.20 points, or 0.5%, to 4,732.20
