Asian markets ended mixed Friday after slipping in and out of the red in volatile trade.
Most regional currencies also slid lower as investors sought a safe haven in the U.S. dollar, with traders speculating that some central banks stepped in to support their local currency unit.
Sentiment remained fragile with global economic data continuing to paint a worsening picture and as investors worry that, as banks around the world rush to recapitalize, returns will diminish.
Japan's Nikkei 225 Average climbed 1.5%, or 110.49 points, to 7,568.42,
On the downside, Hong Kong's Hang Seng Index fell 0.7%, or 83.37 points to 12, 811.42, after struggling to hold on to early gains.
Markets also ended mixed for the week, with Japanese, Taiwanese and Hong Kong shares posting gains, while Chinese, Australian and South Korean shares declined.
Energy-related shares were broadly higher after crude-oil prices surged overnight in New York, with Inpex Corp. gaining 3.7% in Tokyo and Santos and BHP Billiton rising 3.1% and 0.8%, respectively, in Sydney.
Japanese and South Korean auto makers declined despite advancing shares in their respective markets, as sentiment soured after General Motors posted a $9.6 billion U.S. loss for the fourth quarter. Honda Motor Co. dropped 1.4% and Nissan Motor Co fell 0.3% in Tokyo, while Hyundai Motor Co. lost 1% in Seoul.
Shanghai-listed shares declined on expectations of disappointing first-quarter earnings and weak U.S. stocks.
Singaporean shares were weak after the prime minister said in an interview the city-state's economy could contract by more than 5% in 2009 and the unemployment rate could double to 5%.
Most Asian currencies declined against the U.S. dollar, with the dollar rising against the South Korean won to 1,535 won from 1,517 won, giving rise to market talk of central bank dollar sales to prevent the won from falling further.
The dollar also gained against the Singapore dollar and Taiwanese dollar,
The Japanese yen advanced against the U.S. dollar after rapidly losing ground in the last few days, hurting its image as a safe haven. In the yen-carry trade, investors sell the yen in favor of riskier, higher-yielding currencies.
The dollar eased to 97.71 yen recently from 98.72 yen overnight in New York, its highest level since Nov. 5, on mounting concerns over the buckling Japanese economy.
Elsewhere:
China’s Shanghai Composite Index slid 49.70 points, or 2.3%, to 2, 140.49
Singapore’s Straits Times Index was off 22.57, or 1.4%, to 1,594.87
Taiwan’s Taiex picked up 38.59 points or 0.9% to 4,557.15.
South Korea’s Kospi nudged ahead 8.24 or 0.8% to 1,063.03
New Zealand’s NZX 50 Index rose 24.88 or 1.0% to 2,522.32.
Australia’s S&P/ASX 200 Index was off one point or 0.03% to end the week at 3,344.50
