Asian markets ended mixed Wednesday, as Shanghai advanced on expectations of increased bank lending, while Wall Street's decline overnight weighed on sentiment in Australia.
In Tokyo, the Nikkei 225 advanced 33.03 points, or 0.3%, to 10,133.23, led by bargain buying in large banks, some of which fell more than 15% during September.
Mizuho Financial Group gained 1.1% and Sumitomo Mitsui Financial Group rose 2.6% after Financial Services Minister Shizuka Kamei said banks shouldn't be worried about his proposal for a moratorium on loan repayments for small firms, as the government had yet to decide on details, according to a Kyodo report published by the Nikkei.
In Hong Kong, the Hang Seng index gave back 57.92 points, or 0.3%, of yesterday’s gain to 21,013.17.
Banks fell in Sydney and Hong Kong after an overnight decline on Wall Street, with National Australia Bank down 1.5% and Commonwealth Bank of Australia 0.7% lower.
In Hong Kong, Chinese lenders and insurers fell amid concerns over valuations, and in spite of the advance in Shanghai, with Bank of Communications 1.4% lower and Ping An Insurance (Group) Co. of China down 1.4%
In Japan, Toyota Motor underperformed the broad market to end flat, with sentiment hurt by news it was recalling 3.8 million vehicles in the U.S., its largest-ever safety recall. The company's decision came after U.S. officials raised concerns that accelerator pedals could become trapped under floor mats, causing cars to speed up even after drivers lifted their foot off the pedal.
Korea Gas slumped 10.6% on concerns of share value dilution after it said Tuesday it was considering doubling its capital in stages by 2013, possibly via a rights offering and issuance of overseas depository receipts.
In foreign exchange markets the U.S. dollar was back below the 90-yen mark, weighed by exporters' sales, while the euro was also lower against the yen.
The U.S. dollar was recently buying 89.57 yen compared with 90.19 yen late in New York trade.
The euro was fetching 130.92 yen compared with 131.41 yen. The euro was higher against the dollar at $1.4617 U.S. compared with $1.4573 U.S.
CHINA
Shanghai’s 300 Composite Index picked up 32.52 points to 3,004.80.
Trading volumes were weak in most markets on the last day of the quarter, with activity in Shanghai and Hong Kong particularly slow before Thursday's National Day holiday. Mainland markets will reopen on October 9.
Expectations of a strong rebound in September bank lending were supporting Chinese shares, after Credit Suisse economist Dong Tao wrote in a report the brokerage expected new credit of 500 billion yuan to 600 billion yuan ($73.25 billion-$87.9 billion U.S.) in September, led by car and mortgage loans.
That compares with 410 billion yuan in August and 356 billion yuan in July. Bank lending data from China has been closely watched in recent months as analysts believe record disbursals in the first half of the year played a key role in the nation's continuing economic recovery.
In Shanghai trading, shares of Poly Real Estate Group rose 3.3% and SAIC Motor gained 3.2%, while Industrial & Commercial Bank of China rose 0.6%.
Elsewhere:
South Korea’s Kospi index skidded 16.91 points, or 1%, to 1,673.14.
Taiwan’s Taiex moved ahead 79.19 points, or 1.1%, to 7,509.17
Singapore’s Straits Times index gained 9.26 points, or 0.4%, to 2,672.57
New Zealand’s NZX 50 Index picked up 5.67 points, or 0.2%, to 3,161.06
Australia’s S&P/ASX 200 eased back 9.50 points, or 0.2%, to 4,743.60.
