Japanese stocks ended lower Friday as the strengthened yen hurt exporters, with automobile companies hit hard by concerns that the end of the U.S. government's cash-for-clunkers incentive program may lead to weaker sales.
Markets in the rest of the region were mixed, but ended mostly lower for the week. Concerns that Beijing might be moving to tighten bank lending weighed on Hong Kong shares, though stocks traded on the mainland ended higher, continuing a recent rebound after sharp losses so far this month.
The Nikkei 225 index in Tokyo faded 145.21 points, or 1.4%, to close the week out at 10,238.20.
Among automobile shares, Honda Motor Co. tumbled 4.1% and Nissan Motor Co. sank 5.2%, while Toyota Motor Corp. fell 2.9%
In Hong Kong, the Hang Seng index skidded 129.84 points, or 1.9%, to 20,199.02, with shares of Chinese banks dropping after Bloomberg reported that China planned to tighten capital requirements for banks, citing people familiar with the matter.
Shares of Bank of China fell 0.8%, while Industrial & Commercial Bank of China dropped 0.6% in Hong Kong. In Shanghai, their stocks rose 1.2% and 2.3%, respectively.
Shares in Hong Kong market heavyweight China Mobile fell 3.4% -- the company reported a sharp slowdown in profit growth in the first half of 2009 Thursday.
Australia's S&P/ASX 200 fell, with shares in Telstra Corp. slumping 4.9% after Future Fund said late Thursday it sold down 34% of its Telstra holding after an underwritten share sale to institutional investors.
Rio Tinto shares fell 3% in Sydney after its earnings for the first half of the year, released late Thursday, came in below expectations. Citigroup analysts said the results capped a tough period for the miner but better times may lie ahead - "with the balance sheet repaired, (metals) prices rallying and costs falling, the second half of 2009 and the 2010 year look much rosier."
Japanese stocks were weighed by a rising yen, with Canon Inc. losing 1.1% and Nintendo Co. down 3.1%.
In Wellington, shares of Telecom Corp. of New Zealand dropped 1.1% after posting a 32% drop in full-year net profit.
Japanese government bonds rose sharply on the weakness in Tokyo shares, with the lead September futures closing the day 0.45 higher at 139.20, rising above 139 for the first time since March 26. The yield on five-year cash bonds was down 2.0 basis points at 0.630%.
Elsewhere:
Shanghai’s 300 Composite Index ended a rollercoaster week with a gain of 59.23 points, or 1.9%, to 3,203.63
Singapore’s Straits Times Index stepped backward 14.71 points, or 0.6%, to 2,544.86
South Korea’s Kospi index gained 4.59 points to 1,580.98
Taiwan’s Taiex lost 78.43 points, or 1.2%, to 6,654.80
New Zealand’s NZX 50 Index gave back 18.16 points, or 0.6%, to 3,034.95
Australia’s S&P/ASX 200 stumbled 86.90 points, or 2%, to 4,290.60.
