Most Asian markets rose Wednesday after the Dow Jones Industrials ended at a record high, although trading was choppy as concern that the Federal Reserve may taper its bond purchases tempered optimism.
The Nikkei 225 inched up 14.48 points, or 0.1%, to 14,326.46
In Hong Kong, however, the Hang Seng Index faltered 369.32 points, or 1.6%, to 22,554.93
Shares of several Japanese exporters turned lower as the yen strengthened after Bank of Japan Governor Haruhiko Kuroda said the global economy has yet to shake off completely the adverse effects of the global financial crisis.
Sony Corp. fell 0.6%, Sharp Corp. dropped 3.4% and Mazda Motor Corp. eased 1.2%.
Financial stocks were choppy amid volatility in the yields on Japanese government bonds, with Mizuho Financial Group Inc. reversing early gains to drop 0.5%, while Sumitomo Mitsui Trust Holdings Inc. shed 2.4%. Banks are the largest class of investors holding JGBs.
The yield on 10-year Japanese government bonds, which ended a little over 0.9% on Tuesday, rose further on Wednesday. The yield, which had risen as high as 0.94% earlier in the day, was at 0.92% by early afternoon.
Shares of Softbank Corp. climbed 2.1% on reports the mobile service provider and Sprint Nextel Corp. have reached an agreement with the U.S. to protect national security, clearing a hurdle in Softbank’s plan to acquire the U.S. wireless operator.
In Sydney, stocks that pay high dividends led the market’s retreat as the Australian dollar traded under 96 U.S. cents.
Shares of Commonwealth Bank of Australia dropped 2.5%, while Australia & New Zealand Banking Group fell 1.7%, despite announcing a $A425-million share buyback.
A rally in mining stocks in the wake of the strong finish on Wall Street helped the broader market overcome those losses, with BHP Billiton Ltd. rising 2.6% and Rio Tinto Ltd. climbing 3.4%.
Losses in Hong Kong came as investors locked in recent gains in banks and property developers.
Shares of Industrial & Commercial Bank of China Ltd. dropped 1.5%, China Overseas Land & Investment Ltd. shed 3.2% and ports operator Cosco Pacific Ltd. fell 1.4%.
In other markets;
In Shanghai, the CSI 300 Index docked 1.80 points, or 0.1%, to 2,642.56
Singapore’s Straits Times Index stepped back 38.61 points, or 1.1%, to 3,367.47
In Korea, the Kospi Index added 14.98 points, or 0.8%, to 2,001.20
Taiwan’s Taiex Index improved 74.85 points, or 0.9%, to 8,337.90
The New Zealand Exchange 50 Gross Index eked ahead 10.01 points, or 0.2%, to 4,588.26
Australia’s S&P/ASX gained 4.08 points, or 0.1%, to 4,974.73
