Most Asian markets ended higher Tuesday, overcoming selling pressure from investors keen to lock in profits after a strong run recently.
The benchmark 225-issue Nikkei Stock Average ended at 8,395.9, up 66.8 points or 0.8% while the benchmark Hang Seng Index dropped 291.7 points or 1.9% to close at 14,753.2.
The Cabinet Office said that the Japanese economy shrank an annualized real 1.8% in the three-month period through September, revised downward from an initially reported 0.4% contraction. The latest data confirmed that Japan's GDP contracted for the second straight quarter and that the economy has entered a recession.
In other economic news, Japan's Cabinet Office said in a preliminary report that the leading index declined to 85 in October from 89.2 in September, revised from 89.4. A year ago, the index had logged 96.2. The October reading matched economists' expectations. At the same time, the coincident index logged a reading of 97.6, down from 100.1 recorded in September, revised from 100.9.Economists were looking for a reading of 98.1. The lagging index fell to 98.2 from 97.9 seen in September, revised from 99.3.
Securities, real estate and sea transport issues led the gainers. Among brokerages, Nomura Holdings soared 11.9% and Daiwa Securities jumped 6.5%. Property developer Mitsui Fudosan gained 9.3%, Mitsubishi Estate rose 8.0% and Sumitomo Realty and Development advanced 7.3%. Shipping firms also closed higher, with Mitsui O.S.K. Lines jumping 6.2%, Nippon Yusen rising 6.0% and Kawasaki Kisen advancing 4.0%.
In the mining space, Inpex Holdings surged up 7.1% and Nippon Mining Holdings gained 5.8%.
Insurers were mixed, with Tokio Marine Holdings advancing 1.3%, Sompo Japan Insurance plunging 5.7%, and Mitsui Sumitomo Insurance losing 3.3%. Among banks, Sumitomo Mitsui Financial Group dropped 2.2% and Mizuho Financial Group declined 2.1%, while Mitsubishi UFJ Financial Group jumped 6.5%.
Exporters finished mixed. Komatsu climbed 2.9%, Kubota rose 6.5%, Hitachi Construction added 3.3%, Honda advanced 6.3%, Toyota Motor edged up 0.7%, and Sony moved up 3.9%. Canon shed 0.4%, and Panasonic and Hitachi lost 1.2% each.
Nintendo climbed 4.2% after the company said that the sales of its Wii game console more than doubled during the week of the Thanksgiving holiday in the United States, despite the retail gloom following the global economic crisis.
CHINA
The Chinese stock market fell for the first time in a week as investors locked in profits following uncertainties over future economic policies. Financial and real estate stocks led the decliners. The benchmark Shanghai Composite Index closed down 53.03 points or 2.5% at 2,037.7 and the Shenzhen Composite Index for China's smaller second exchange dropped 2% to 610.2.
Banks fell despite a news report that the government is considering a tax cut to help their profitability. Industrial and Commercial Bank of China fell 3.2%, Bank of China dropped 2.4%, China Construction Bank shed 3.3% and Pudong Development Bank lost 4.2%. Real Estate giant China Vanke plunged 3.5% and Poly Real Estate Group tumbled 3.9%.
Index heavyweight PetroChina dropped 2.0% and China Petroleum & Chemical Corp, also known as Sinopec, tumbled 5.0%.
However, cement stocks rose on expectations that the companies will benefit from the government's November stimulus plan, which calls for higher spending on construction of highways and other public projects. Tangshan Jidong Cement and Sichuan Golden Summit jumped 3.9% each.
Elsewhere:
The benchmark Korea Composite Stock Price Index or KOSPI closed up 0.8 point or 0.1% at 1,105.8.
Taiwan's Taiex closed up 1.2% at 4,472.
Singapore's STI closed up 5.8% at 1,754.
Indonesia's Jakarta Composite Index closed up 5.3% at 1,266.
Malaysia's KLCI closed down 3.1 points at 835.
Australia's S&P/ASX 200 index dropped 0.8% to 3,604.30.
New Zealand's NZX 50 index climbed 0.9% to 2,721.95.
with files from othere wire services
