Asian stocks closed mixed to lower Thursday, but the Nikkei 225 broke from the general downtrend in Tokyo's first day of trading for 2007, lifted by gains in such exporters as Toyota Motor Corp. and Sony Corp. after the U.S. dollar strengthened against the Japanese yen.
In Tokyo, the Nikkei 225 index rose 127.84 points, or 0.74 percent, to 17,353.67 while Hong Kong's Hang Seng Index fell 387.81 points, or 1.9 percent, to close at 20,025.58.
Traders said investors remain optimistic about the market's outlook and didn't react nervously to a local newspaper report over the New Year's holiday that said the Bank of Japan will consider raising interest rates at its policy board meeting in mid-January.
Toyota rose 1.6 percent to 8,090 yen (US$67.80) while Nissan rose 1.5 percent to 1,454 yen (US$12.18).
Elsewhere:
BANGKOK: Thailand's shares ended lower in razor-thin trade on selling across the board. Negative sentiment likely to continue pressure index. The Stock Exchange of Thailand's SET index lost 11.03 points, or 1.67 percent, to close at 648.22.
JAKARTA: Indonesia shares fell as bellwether blue chip telecom shares slide in moderate afternoon trade volume and local brokers unloaded shares onto overseas pension funds. The Jakarta Stock Exchange Composite Index dropped 10.606 points, or 0.6 percent, to close at 1,824.103.
KUALA LUMPUR: Malaysian shares rose led by plantation interests that reaped the benefits of strong commodity prices. The Kuala Lumpur Composite Index of 100 blue chips climbed 0.1 percent to 1,118.18 points.
MANILA: Philippine shares slipped after the market hit a 10-year high the previous session. The benchmark Philippine Stock Exchange Index lost 7.96 points, or 0.3 percent, at 3,012.74.
MUMBAI: Indian shares fell to end below the key 14,000 level on profit-taking in technology stocks and consumer goods maker ITC. The Bombay Stock Exchange's benchmark 30-stock Sensitive Index, or Sensex, ended down 1.2 percent, or 164.54 points, at close at 13,850.38.
SEOUL: South Korean shares closed at its lowest level in three weeks as banks and construction shares lost in the market on continuing worries that tougher mortgage loan rules will erode bank profit margins and damp the property market. The Korea Composite Stock Price Index, or Kospi, ended down 12.06 points, or 0.9 percent, at 1397.29.
SHANGHAI: China's stocks hit a new record high for a sixth straight trading session, driven by banks and other big-cap stocks as markets reopened after the New Year break. The Shanghai Composite Index ended up 1.5 percent at 2,715.72 points after rising above the symbolic 2800 level for the first time before falling back. The Shenzhen Composite Index for China's smaller market edged up 0.6 percent at 553.69.
SINGAPORE: Singapore's benchmark Straits Times Index fell Thursday due largely to profit-taking after Wednesday's rise, and traders expect the index to move sideways or even slide further as investors become more cautious. The STI closed down 13.9 points, or 0.5 percent, to finish at 3023.8 points.
TAIPEI: Taiwan shares rose slightly, led by display panel makers on expectations of strong demand. The Weighted Price Index of the Taiwan Stock Exchange gained 17.21 points, or 0.2 percent, to 7,934.51.
WELLINGTON: New Zealand stocks closed lower, dragged down by market heavyweight Telecom Corp. and weak leads from offshore markets. The benchmark NZX-50 index fell 20.5 points, or 0.5 percent, to 4,028.96.
SYDNEY: Australian shares closed lower on a slump in commodity prices and weakness overnight on Wall Street. Dealers suggested there is scope for further weakness in the short term. The benchmark S&P/ASX 200 index fell 64.5 points, or 1.1 percent, to 5,585.8, closing.
With files from wire services
