Asian shares were mostly a little higher Wednesday, showing some resilience on signs the global economic slowdown may be fading, with Nissan Motor powering ahead in Tokyo on hopes for an earnings turnaround.
The Nikkei 225 Stock Average gained 41.88 points, or 0.5%, to 9,298.61.
The Hang Seng Index in Hong Kong slipped 94.02 points, or 0.6%, to 17,059.62
Analysts were a little mixed on the near-term outlook: "Emerging hopes that the global economy may have bottomed out in the January-March quarter haven't faded," said Tachibana Securities analyst Kenichi Hirano, but Bank of NZ strategist Danica Hampton warned "equity markets and investors have become overly optimistic about the timing and strength of the global recovery."
U.S. stock futures were a tad lower in screen trade, even as Intel Corp. gained 3.1% after-hours. Chief Executive Paul Otellini said conditions seemed to be improving further in the current period, with the market likely to return this year to seasonal growth patterns, although from a lower base.
The U.S. dollar briefly fell to its lowest level against the Japanese yen since April 28. Investors have been selling the greenback of late on nascent signs of a recovery in the global economy, which has spurred interest in riskier currencies.
Nissan Motor was a standout in Tokyo, up 5.5% even as it booked its first annual net loss since Chief Executive Carlos Ghosn took the helm in 1999. Sentiment was helped by Ghosn's prediction the company would return to profitability by the end of fiscal 2010 year, if not sooner.
Hitachi though was down 10% after it posted a record loss for the just-ended fiscal year. Oil-related shares gained in Tokyo after crude futures rose in New York, with Inpex up 3.3%.
Korean technology stocks were mixed despite the Intel CEO's comments, with Samsung Electronics nudging up 0.4% but Hynix Semiconductor down 3.1% after its recent gains and as the Korean won strengthened.
Rio Tinto fell 4.5% in Sydney after it said the outlook remained uncertain, though it added the worst may be over in China and the long-term industry picture was strong. Commonwealth Bank of Australia slipped 1.8% after it said it would cut its final dividend by around 25% on year.
In currency trade the U.S. dollar was down at Y96.12, from Y96.47 late in New York, though off a low of Y95.78, with the euro up at $1.3693, from $1.3632 U.S., and trading at Y131.65, from Y131.64.
Some traders attributed the U.S. dollar's fall in part to a report in the Financial Times which talked about America's AAA credit rating potentially being at risk unless the government put its finances in order.
Analysts at Barclays Capital added a downgrade "would serve little purpose, especially relative to the potential financial market turbulence generated by such a move."
Japanese government bonds were off their lows, with June futures down 0.07 at 136.67 points.
Front-month Nymex crude oil futures were 76 cents higher at $59.61 U.S. a barrel on Globex, adding to a 35 cent New York gain.
CHINA
China plays were in demand in Taiwan. China Steel rose 2.8% after an Apple Daily report that it and Sinosteel planned to make joint investments in steel industries outside their home markets.
China Construction Bank fell 2.2% in Hong Kong. An undisclosed institutional shareholder was seeking to raise about $460 million U.S. by selling 738 million shares in the lender, according to a term sheet seen by Dow Jones Newswires on Wednesday.
Elsewhere:
China’s Shanghai 300 Composite Index gained 25.44 points, or 0.9%, to 2,814
Singapore’s Straits Times Index picked up 7.16 points, or 0.3%, to 2,185.29
South Korea’s Kospi index advanced 11.01 points, or 0.8%, to 1,414.52
Taiwan’s Taiex index marched ahead 52.59 points, or 0.8%, to 6,485.14
New Zealand’s NZX 50 Index was flat at 2,811.56.
Australia’s S&P/ASX 200 was off 21.10 points, or 0.5%, to 3,856.10
