Chinese stocks in Shanghai and Shenzhen slumped Friday, finding little support ahead of the Beijing Olympics opening ceremony, as concerns about a slowing economy weighed down property developers and airlines.
In Japan, the benchmark Nikkei 225 index rose 43.42 points or 0.3% to close at 13,168.41 while in Hong Kong, the benchmark Hang Seng index closed down 218.99 points or 0.99% at 21,885.21.
On the economic front, lending by banks in Japan increased 2.0% in July compared to that a year earlier. Total outstanding loans including those at "shinkin" banks, or regional credit unions, amounted to 456.57 trillion yen at the end of June, up 1.8% from a year before. On an adjusted basis, bank lending increased 2.5%, accounting for special items such as loan securitization, foreign exchange and bad debt write-offs. The central bank also said that in July M2 money supply increased 2.1% and M3 rose 0.8% respectively on Month.
Meanwhile, the latest Economy Watchers Survey released by the Cabinet Office showed that the current index fell to 29.3 in July from 29.5 in June. The index has declined for four consecutive months now. Meanwhile, the outlook index decreased for the fifth month in a row to reach 30.8. In June the index stood at 32.1.
Auto stocks finished higher, with Toyota Motor jumping 5.5% and Mazda Motor gaining 2.6%. Toyota Motor reported Thursday a 28% fall in fiscal first-quarter profit, but maintained its fiscal year forecasts. Among other exporters, Canon rose 0.8%, Honda Motor gained 0.9%, Komatsu jumped 2.9% and Sony advanced 0.5%.
Banks closed lower, but trimmed their early losses. Mizuho Financial Group gave away 1.7%, Sumitomo Mitsui Financial Group fell 2.0% and Mitsubishi UFJ Financial declined 2.8%.
In the oil sector, miner Inpex Holdings fell 0.7% and Nippon oil lost 1.8%, but Nippon Mining Holdings gained 0.8%.
Tokyo Electric Power declined 0.3%. A report said that the company is planning to establish 200 recharging stations for electric vehicles in the greater Tokyo area in the year to March 2010, expanding the network to 1,000 or so in about three years.
Japan Airlines shed 0.5%. According to report, the company's management had reached an agreement with the its largest labour union to trim by 5% the base pay and stipends of the 17,000 employees at core unit Japan Airlines International.
The Shanghai market closed sharply lower, reversing Thursday's marginal gains. The market lost ground ahead of the Olympics opening ceremony, as a slump in Olympics-related stocks dented investor sentiment. The benchmark Shanghai Composite Index closed down 121.86 points or 4.47% at 2,605.72, lowest since December 28, 2006. For the week, the index has lost 7%.
Airlines fell, with China Eastern Airlines, China Southern Airlines and Air China falling by the 10% daily limit.
Elsewhere:
Taiwan's Taiex closed up 2.6% at 7,209.
Singapore's STI closed down 1.0% at 2,807.
Malaysia's KLCI closed down 0.8% at 1,120.
Indonesia's Jakarta Composite index closed down 0.1% at 2,195.
India's Sensex closed up 0.3% at 15,167.
New Zealand's NZX 50 lost 0.6%.
Australia's All Ordinaries index added 7.6 points to finish at 5,037.6.
with files from other wire services
