Asian shares ended mixed in thin trading volume Tuesday after hovering in a range around break-even, as investors awaited first-quarter corporate earnings in the U.S. and in some regional markets.
The Nikkei 225 Average gave back 25.08 points, or 0.3%, to close at 8832.85, ending a four-session win streak.
Hong Kong’s Hang Seng Index lost 69.07 points, or 0.5% to 14,928.87.
Banks came under selling pressure as investors pocketed gains before upcoming holidays. Resource stocks were hurt by a decline in metals prices, while Rio Tinto tumbled in Sydney on news it's slowing down an expansion plan and cutting production of bauxite due to weak aluminum demand.
Several Asian markets are closed for Good Friday, with some also closed for Easter Monday.
"Earnings jitters during the start of the first-quarter reporting season could provide the impetus for a brief pause," said DBS Vickers strategist Yeo Kee Yan in Singapore. But he said any pullback should be viewed as an opportunity to buy. "We believe that bears will have 'limited ammunition' as economic data out of China and U.S. continues to improve," he said.
Financial stocks, the drivers of a recent rally across the region, broadly declined. HSBC Holdings fell 1.6% in Hong Kong, National Australia Bank dropped 2.3% in Sydney, DBS Group Holdings lost 3.1% in Singapore trading and Mitsubishi UFJ Financial Group ended 1.2% lower in Tokyo.
Japanese shares didn't react much to the central bank's decision to keep interest rates unchanged at 0.1%. The decision was widely expected, and investors are waiting for details of the government's proposed $100-billion U.S. stimulus package due Friday.
The decline in Sydney came after the Reserve Bank of Australia cut its policy rate by a quarter percentage point to 3%.
Referring to Japanese earnings season for the fiscal fourth-quarter ended March 31, Deutsche Bank analysts said they see a "major risk of further downward revisions beyond the figures announced at the time of [third-quarter] results. We believe losses at the mega-banks in particular could be negative for share prices in the near term."
In Sydney, shares of Bendigo & Adelaide Bank fell 6.5%, on top of Monday's 8.2% tumble after it warned investors of lower profits.
Shares of Telstra Corp. jumped 4.4% after the Australian government said it would allow the telecommunications major to be involved in a national broadband network. The government had earlier barred the company from the tender process.
Rio Tinto plunged 10% after the mining giant said it is slowing the construction of a planned alumina refinery and will slash production of bauxite in response to weak demand and prices for alumina and aluminum. The stock was also pressured by a drop in base metal prices in London Monday and speculation of a share-rights issue which would dilute equity holdings.
In Taiwan, HTC shares fell 2.9% after it reported a drop in first-quarter net profit Monday.
In Hong Kong, shares of major telecom company PCCW rose 0.5% as trading resumed for the first time this month. Monday, a court dismissed accusations of wrongdoing related to a $2.1 billion buyout of the company by its principal shareholders.
Elsewhere:
China’s Shanghai 300 Composite Index gained 6.45, or 0.3% to 2,576.95
Singapore’s Straits Times Index was off 45.59 points, or 2.5% to 1,802.39
South Korea’s Kospi Composite Index picked up 2.25 points, or 0.2%, to 1,300.10
Taiwan’s Taiex Index improved 20.63 points, or 0.4%, to 5,576.85
New Zealand’s NZX Index slid 20.97 points, or 0.8%, to 2,612.42
Australia's S&P/ASX 200 index was off 50.30 points or 1.3 %, to 3,706.30
