Asian markets ended mixed Thursday, with Japanese stocks finishing higher as the yen's weakness spurred exporters such as Sony Corp., while Hong Kong shares declined as strong Chinese economic data added to fears of further policy tightening.
In Tokyo, the Nikkei 225 Index gained 130.89 points or 1.2% to 10,868.41
Hong Kong’s Hang Seng Index collapsed 423.50 points, or 2%, to 20,862.67, amid concerns the strength of China's economic recovery would force Beijing to tighten its monetary and fiscal policies to control rising inflationary pressures.
Australia's S&P/ASX 200 dropped 0.8%, with BHP Billiton shedding 1.7% and Rio Tinto losing 3.2%.
Shares of HSBC Holdings dropped 0.9% in Hong Kong and Foxconn International Holdings slumped 8.5% in Hong Kong and Nanya Technology Corp. tumbled 6.9% in Taipei.
But Japanese exporters advanced on the yen's weakness against the U.S. dollar, with Sony Corp. climbing 4.1% for its first positive finish in three sessions, while Honda Motor Co. advanced 1.7% to snap a three-session losing streak.
Among financials, Sumitomo Mitsui Financial Group jumped 4.5% after setting a price for its planned public offering later this month. Insurers also got a boost from a Nikkei report that non-life insurance companies are bolstering their Chinese operations on the back of rising auto ownership. Mitsui Sumitomo Insurance Group added 2.5%.
South Korea's LG Display gained 4.6% after reporting better-than-expected earnings for the fourth quarter. Hyundai Motor jumped 5.3%, supported by a recent rise in the greenback versus the South Korean won, and also its growing market share in China.
Shares of Hynix Semiconductor advanced 2.2% after it swung back to a profit in the fourth-quarter from losses in the year-earlier period.
Among foreign exchange majors, the euro fell against the dollar as speculators took China's economic data as a cue to sell the risk-sensitive unit. The euro was at $1.4093 U.S. from $1.4102 U.S. in late New York trade, after hitting a low of $1.4059 U.S. earlier in the session.
The euro also bought 129.22 yen from 128.69 yen. The U.S. dollar was trading at 91.68 yen, compared with 91.23 yen.
CHINA
China's fourth-quarter gross domestic product rose 10.7% from the year-earlier period, pushing 2009 GDP growth to a better-than-expected 8.7%. At the same time, China's inflation as measured by the consumer-price index rose 1.9% in December, driven by high food prices
The Shanghai 300 Composite Index regained 14.14 points, or 0.4%, to 3,408.57.
Chinese banks in Shanghai retraced some losses they suffered the previous day, with Bank of Communications gaining 2.3% and China Merchants Bank rising 1.8%. But mainland banks, property developers and materials stocks lost heavily in Hong Kong. Bank of Communications fell 3.8% and China Merchants fell 2.9%, while Agile Property Holdings lost 3.6%, Aluminum Corp. of China slid 3.9% and Angang Steel shed 4.1%.
Worries that any tightening measures from Beijing would weigh on China's demand for commodities as well as a stronger U.S. dollar also sent mining and metals shares lower elsewhere in the region.
Elsewhere:
Korea’s Kospi Index was 7.63 points, or 0.5%, higher to 1,722.01
Taiwan’s Taiex index dropped 93.06 points, or 1.1%, to 8,127.87
Singapore’s Straits Times index subtracted 42.15 points, or 1.5%, to 2,893.13
New Zealand’s NZX Index retreated 1.96 points to 3,227.25
Australia’s S&P/ASX 200 shed 41 points, or 0.8%, to 4,827.20
