Most Asian stock markets ended down Thursday as caution reigned ahead of the U.S. jobs report Friday, with Japanese shares hurt by deepening fears over Toyota Motor's vehicle recall.
In Tokyo, the Nikkei 225 Index settled back 48.35 points, or 0.5%, to 10,355.98
Hong Kong’s Hang Seng Index tumbled 380.44 points, or 1.8%, to 20,341.64
Toyota Motor's 3.5% drop on deepening concerns over the impact of its large-scale vehicle recall in the U.S. and Europe pressured the Tokyo market. U.S. Transportation Secretary Ray LaHood's comments Wednesday that his agency was widening its probe of sudden acceleration complaints in Toyota vehicles, as well as fresh troubles reported over the brakes of the Prius gas-electric hybrid weighed on sentiment.
The fall in Tokyo also came ahead of results from Toyota and Sony Corp After the Tokyo close, Toyota said it swung back to profitability in the quarter ended Dec. 31, with net income coming in at a higher-than-expected 153.2 billion yen ($1.68 billion U.S.) from a loss of 164.64 yen in the year-earlier period
Sony's shares fell 2.2%, before the electronics giant also reported a better-than-anticipated quarterly profit of 79.2 billion yen, and cut its full-year loss outlook.
Honda Motor Co. advanced 2.6% after it posted strong third-quarter profits Wednesday and raised its fiscal year guidance.
Hong Kong shares declined as investors locked in profits after they rose in the previous three sessions. Brokerage house Taifook said a better-than-expected U.S. jobs report Friday could lift the mood.
Energy producer Cnooc slid 2%, taking a breather after its 9.4% rise Wednesday in the wake of its aggressive forecast of a 22% to 27% growth in 2010 production. Esprit ended 0.4% lower in the downbeat market, although its first half results announced Wednesday beat analysts' expectations.
The Australian market was pulled down as materials stocks tracked their U.S. peers lower. BHP Billiton lost 1.2% and Rio Tinto fell 2.6%. In the energy sector, Karoon Gas Australia tumbled 11.3% after disappointing drilling results.
Resource stocks also fell elsewhere, with Aluminum Corp. of China sliding 3.7% in Hong Kong, Sumitomo Metal Mining Co. down 1.6% in Tokyo.
South Korean equities got some support from gains in auto stocks, with Hyundai Motor rising 3.6% and Kia Motors adding 2.9%, still aided by news earlier in the week of market share gains in the U.S.
New Zealand's fourth-quarter unemployment rate rose to a higher-than-expected 7.3%, the worst in over a decade, from 6.5% in the third quarter. The surprisingly bad result prompted many economists to shift their expectations for the timing of the Reserve Bank of New Zealand's first rate hike this cycle to June rather than April.
In foreign exchange markets, the U.S. dollar remained steady against the euro and yen after rallying Wednesday on a better-than-expected result from the U.S. ADP jobs report. Traders said the focus in currency markets remained squarely on Friday's U.S. non-farm payrolls data.
The euro was at $1.3847 U.S. from $1.3891 U.S. late in New York Wednesday, and at 125.86 yen from 126.42 yen. The U.S. dollar was buying 90.90 yen from 90.99 yen.
CHINA
Chinese shares in Shanghai also drifted lower, with Bank of China dropping 0.5% and China Merchants Bank falling 0.9%.
The Shanghai 300 Composite Index dropped 11.91 points, or 0.4%, to 3,218.80
Elsewhere:
Korea’s Kospi Index was 1.40 points higher to 1,616.42
Taiwan’s Taiex index lost 5.94 points to 7,542.04
Singapore’s Straits Times index gave back 19.86 points, or 0.7%, to 2,744.98
New Zealand’s NZX Index regained 13.83 points, or 0.4%, to 3,148.94
Australia’s S&P/ASX 200 subtracted 26.30 points, or 0.6%, to 4,621.60.
