Asian shares were mostly lower Thursday as Wall Street's tepid performance Wednesday failed to inspire markets, but shippers were up in Japan and mining plays were supporting Australian stocks.
Traders say investors were cautious ahead of U.S. jobs data Friday, while recent developments around debt-strapped Greece were also being watched closely.
The Nikkei 225 index in Tokyo tailed off 107.42 points, or 1.1%, to 10,145.72
The Hang Seng Index in Hong Kong jettisoned 301.81 points, or 1.4%, to 20.575.78.
In Tokyo, investors were not keen to take on large positions before Friday's U.S. nonfarm payrolls data. The euro's gains against the yen were helping exporters with higher exposure to Europe, but "what investors are watching the most is whether the yen will weaken or rise against the dollar," said one expert.
Sony was up 0.8% and Canon was up 0.9%; both have good exposure to European consumers. Shippers led gains, driven by a rise in the Baltic Dry Index with Nippon Yusen up 3.1% and Mitsui O.S.K. Lines up 2.2%.
Elpida Memory rose 2.2% after it said it had reached an agreement to acquire flash memory research-and-development operations from U.S. chipmaker Spansion, which filed for Chapter 11 bankruptcy protection last year.
Hong Kong blue chips were getting some support from expectations of positive policies from the upcoming annual meeting of China's top advisory body the CPPCC and the National People's Congress.
Taifook Securities said that the two meetings, "will be of particular importance" this year as the 12th Five-Year Plan will be drafted.
The Hang Seng index, however, was capped by China Mobile, which was down 2.1%, as investors were displeased with the company's plan to buy a stake in Shanghai Pudong Development Bank. Shares in China were down, led by falls in agriculture and environmental stocks in what brokers say was a technical correction after Wednesday's gains.
Australian miners were supporting the Sydney market after commodity prices gained ground Wednesday with BHP Billiton up 1.1%, Rio Tinto adding 0.5% and Fortescue rising 1.0%.
However, the market was held back by losses in the financial sector, which retreated after its recent run higher on the back of good results from Westpac and ANZ bank. ANZ bank was down 0.9% and Commonwealth Bank of Australia dropped 0.5%.
The Taiwan market was down after an earthquake that shook Taipei early in the day, but losses were fairly well contained.
Taiwan liquid crystal display maker Chi Mei said it has halted factory operations, and evaluated plants and office after the earthquake. One company official said; "we are still looking into the full extent of the earthquake's impact." Chi Mei was down 0.2%.
In foreign exchange markets, the euro was trading in tight ranges, at $1.3684 against the U.S. dollar, from $1.3703 in late New York trade Wednesday, and at Y121.00 from Y121.17. The dollar was unchanged at Y88.43.
Elsewhere;
Shanghai’s CSI 300 Index slid 84.51 points, or 2.5%, to 3,250.57
Korea’s Kospi index gave back 4.24 points, or 0.3%, to 1,618.20
Singapore’s Straits Times Index chopped 14.09 points, or 0.5%, to 2,768.70
Taiwan’s Taiex Index stumbled 59.72 points, or 0.8%, to 7,569.80
New Zealand’s NZX Index improved 13.35 points, or 0.4%, to 3,213.56
Australia’s S&P/ASX 200 moved up 14.80 points, or 0.3%, to 4,750.50
