Asian shares ended mixed Friday, with Japanese exporter stocks helping the market extend gains, while Chinese stocks declined on concerns more policy-tightening measures may be forthcoming to ease rising inflation.
The Nikkei 225 index in Tokyo leaped 86.31 points, or 0.8%, to 10,751.26
The Hang Seng Index in Hong Kong tailed off 18.46 points, or 0.1%, to 21,209.74.
Hong Kong-based property developers advanced after Sun Hung Kai Properties reported a 44% rise in net profit for the half-year ended Dec. 31 on Thursday. SHK shares gained 1.4%, while Henderson Land Development Co. rose 2.7%. China Resources Land shed 2.3% in Hong Kong.
Air China shares soared 11.1% in Hong Kong after the Chinese flag carrier said it plans to raise 5.6 billion yuan ($820 million U.S.) through an A-share private placement and will use all the proceeds to supplement its working capital. But concerns about increased share supply hurt the stock in Shanghai, where it fell 4.1%.
Japan's Nikkei was among the best performers in the region this week, with gains of nearly 3.7%.
Exporters pushed the benchmark higher during the session, with Nikon Corp. advancing 2.4% and Nissan Motor Co. gaining 2.4%, while Toyota Motor Corp. advanced 0.4%. Honda Motor Co. added 0.9%, aided by a Nikkei report of brisk sales of the company's CR-Z hybrid sports car.
The advance came on expectations of a weaker yen, which got a boost after Prime Minister Yukio Hatoyama reportedly said the yen's strength was out of line with the nation's fragile economy.
Analysts at Morgan Stanley also said there was a "heightened risk" of Japanese intervention in foreign exchange markets, as the "level of the exchange rate is out of step with underlying [Japanese economic] fundamentals."
Machinery maker Fanuc climbed 1% after Deutsche Bank raised the stock to a buy from a hold, citing its rising exports to China.
The Australian market was led up by rises in cyclical plays after having retreated Thursday on concerns over Chinese inflation and a weaker-than-expected Australian jobs report. Australia & New Zealand Banking Group gained 0.8%, while National Australia Bank advanced 0.6%.
In foreign exchange markets, the U.S. dollar rose as high as 90.67 yen during the session after Japanese Prime Minister Yukio Hatoyama's comments on the currency, before declining. The U.S. dollar was at 90.50 yen from 90.56 yen late in New York trade Thursday.
It slipped against the euro, with the single currency buying 124.15 yen compared with 123.86 yen. The euro was also fetching $1.3721 from $1.3679 U.S.
CHINA
The drop in Shanghai and Hong Kong came after Thursday's economic data from Beijing showed higher-than-expected inflation in February, as well as strong economic data for the first two months of the year.
Shanghai’s CSI 300 Index lost 43.58 points, or 1.3%, to 3,233.13.
Chinese property developers struggled in Shanghai and Hong Kong markets, weighed by credit tightening concerns. Poly Real Estate Group dropped 1.6% in Shanghai and China Vanke fell 1.5% in Shenzhen.
Elsewhere;
Korea’s Kospi index moved forward 6.12 points, or 0.4%, to 1,662.74
Singapore’s Straits Times Index advanced 7.45 points, or 0.3%, to 2,881.36
Taiwan’s Taiex Index dropped 1.33 points, or 0.4%, to 7,748.33
New Zealand’s NZX Index inched up 1.69 points to 3,225.14
Australia’s S&P/ASX 200 moved up 3.90 points to 4,818.10
