Asian shares finished mixed Wednesday, with a steep drop in shares of Japan Airlines putting pressure on the market in Tokyo and a rise in financials propping up stocks in Shanghai.
In Tokyo, the Nikkei 225 index backslid 91.62 points, or 0.9%, to 10,546.44.
Hong Kong’s Hang Seng Index fell 2.82 points to 21,496.62.
In Tokyo, Japan Airlines, or JAL, plunged 23.9% on growing concern the struggling airline may file for bankruptcy protection.
JAL, along with its major lenders and a quasi-government investment fund, is studying a bankruptcy protection filing among other options, in case airline's retirees refuse to accept a proposed cut in their pension allowances, a person familiar with the matter told Dow Jones Newswires.
Losses in JAL outweighed news that Japan's government released a draft mid- to long-term economic growth strategy that aims for average annual inflation-adjusted expansion of more than 2% over the next 10 years.
In South Korea, shares of affiliates of Kumho Asiana Group plunged after the group said it was in discussions with creditors to place two of its units, Kumho Tire and Kumho Industrial , under a debt workout program to ease liquidity concerns.
Kumho Tire said Tuesday it would delay paying employees' monthly salaries for December due to a temporary cash shortage related to the payment of a debt.
Kumho Tire dropped 15% and Kumho Industrial shed 14.9%. Among other affiliates, Kumho Petrochemical lost 6.4% and Asiana Airlines fell 6.9%.
The news spilled over onto the country's banking plays. Woori Finance Holdings, one of Kumho Asiana Group's largest creditors, saw its stock fall 4.2%. Among other bank plays, Hana Financial shed 1.6%.
The U.S. dollar started to weaken against the euro in evening trading after earlier gains. The euro was at $1.4357 U.S. from $1.4349, and was buying 132.20 yen from 132.09 yen in late New York trade.
CHINA
Over in mainland China, the market outperformed the region, led by the banking sector on expectations new yuan loans in December will likely exceed 300 billion Chinese yuan ($43.9 billion U.S.), compared with November's 295 billion Chinese yuan.
The Shanghai 300 Composite Index grew by 58.12 points, or 1.7%, to 3,558.86
In Shanghai, shares of China Citic Bank advanced 5.9%, China Merchants Bank tacked on 5% and Bank of China rose 2.1%.
Insurers also gained ground after a state-run newspaper report cited officials at the Ministry of Finance and the insurance regulator as saying a change in accounting rules will boost insurers' 2009 net profit.
China Pacific Insurance advanced 3.9%, Ping An rose 4.3% and China Life advanced 3.6%.
Elsewhere;
Taiwan’s Taiex index rebounded 58.45 points, or 0.7%, to 8,112.28
Singapore’s Straits Times index gained 10 points to 2,879.76
Korea’s Kospi index progressed 10.29 points, or 0.6%, to 1,682.77
New Zealand’s NZX Index finished 4.22 points, or 0.1%, lower at 3,220.91
Australia’s S&P/ASX 200 eased back 11.80 points, or 0.2%, to 4,833.30
