Asian markets ended mixed Friday, with Japanese shares rebounding as they found bargain buyers a day after being mauled, while the rest of the region finished mostly lower on concerns the financial crisis might evolve into a full-blown recession in the U.S. and Europe.
The benchmark Nikkei 225 Stock Average closed up 235.37 points or 2.78% at 8,693.82 while the benchmark Hang Seng Index closed down 676.31 points at 14,554.21.
On the data front, an index measuring tertiary industrial activity in Japan fell 1.4% in August compared to the previous month, according the Ministry of Economy, Trade and Industry. The index stood at 109.1. Analysts had predicted a monthly decline of 0.8%. The index was also significantly lower than the 1.2% gain in July.
Meanwhile, foreign residents reversed recent course and became net buyers of Japan stocks last week, but remained net sellers of Japanese bonds and notes. Japan's Ministry of Finance reported that foreigners bought a net 34.7 billion yen worth of Japan stocks for the week ending October 11, having been net sellers the preceding two weeks. Overseas residents sold a net 861.0 billion yen in Japanese bonds and notes for the week, their fourth straight week as net sellers.
Later in the day, the Japan Department Stores Association reported that nationwide department store sales continued to fall for the seventh straight month in September as fears of an economic slowdown in the wake of global financial market turbulence reduced household spending. According to the report, sales at Japan's department stores declined at a faster pace of 4.7% year-over-year in September, compared to a 3.1% fall recorded in August. At the same time, sales at Tokyo's 28 major outlets operated by 13 companies fell 4.6% in September, quicker than the 4.1% decrease seen in the previous month.
Most exporters rose after the dollar climbed back above 101 yen. Toyota Motor jumped 3.3% and Sony surged 5.2%. Honda Motor rose 5.2% and Canon gained 5.7%, while machinery maker Komatsu plunged 4.7%.
Nippon Steel soared 5.3% and JFE rallied 7.0% on the back of a Nikkei report that a consortium including Nippon Steel and JFE Holdings has decided to invest in a Brazilian iron ore miner.
On the other hand, commodity-related stocks were mixed after crude futures dipped below $70 overnight in U.S. trading. Mitsui & Co. lost 3.5% and Sumitomo Corp dropped 4.9%. Oil and gas miner Inpex Holdings edged up 0.3% and Nippon Oil surged 6.2%.
In the banking space, Mizuho Financial Group slipped 0.3% and Sumitomo Mitsui Financial Group declined 0.4%, while Mitsubishi UFJ Financial Group rose 2.6%. Among tech stocks, Advantest edged up 0.2%, Fanuc advanced 0.5%, Kyocera added 2.4% and Fujitsu jumped 4.9%.
Defensive sectors like telecom and pharmaceuticals closed higher. DoCoMo jumped 7.4%, Nippon Telegraph and Telephone soared 9.8%, and KDDI Corp gained 7.1%. Astellas Pharma surged 9.0%, Eisai advanced 4.9%, and Chugai Pharmaceutical climbed 4.6%.
CHINA
The Chinese stock market closed higher, ending a three-day losing streak. However, the gains were limited ahead of third quarter economic data scheduled for release on Monday. The benchmark Shanghai Composite Index finished up 20.71 points or 1.08% at 1,930.65, after falling as low as 1,902.60. For the week, the key index lost 3.50%. The index has lost more than 63% so far this year. Brokerages gained after Sinolink Securities forecast a 122% increase in nine months net profit and resource stocks rallied on bargain hunting, but banks finished weak.
Among brokerages, Sinolink Securities jumped 7.9% and CITIC Securities gained 1.9%. In the resources sector, China Petroleum & Chemical advanced 1.7% and index heavyweight PetroChina gained 1.9%. China Shenhua Energy climbed 0.7% and Aluminum Corp of China rose 1.8%. Zijin Mining fell 0.8% as gold for December delivery fell on the New York Mercantile Exchange.
In the banking space, China Merchants Bank dropped 1.1%, but China CITIC Bank added 1.9%. Industrial and Commercial Bank of China closed unchanged. Elsewhere in the financial sector, China Pacific Insurance gained 0.4% after the company announced that that its two units booked unaudited premium income of 76.7 billion yuan in the first nine months of 2008.
Property stocks closed mixed. China Vanke fell 0.6%, while Poly Real Estate Group rose 1.7%. GD Power Development shed 3.4% after the company projected an 80% fall in net profit for the first nine months of the year compared to the same period last year.
Elsewhere:
Taiwan's Taiex closed down 2.3% at 4,960.
Malaysia's KLCI closed down 1.6% at 905.
Singapore's STI closed down 3.7% at 1,878.
Indonesia's Jakarta Composite Index closed down 4.4% at 1,399.
India's Sensex finished down 5.7% at 9,975.
South Korea's Kospi, which tumbled 9.4% in the previous session, dropped another 2.7% to 1,180.67.
Australia's S&P/ASX 200 index lost 1.1% to 3,970.80.
with files from other wire services
