Asian stock markets were mostly lower Thursday after Wall Street's losses Wednesday, but exporters were holding up the Tokyo market.
In Tokyo, the Nikkei 225 gained 13.82 points, or 0.1%, to 10,828.85
The Hang Seng Index in Hong Kong capsized 230.07 points, or 1.1%, however, to 20,778.55.
Sentiment was generally weak across most markets amid persisting concerns about fiscal problems in the eurozone.
On Wednesday, Fitch Ratings downgraded Portugal's credit rating by one notch and issued a negative outlook for the euro zone nation, further denting investors' appetite for risk as Greece's debt woes continued to roil markets.
The Australian market was down in mixed trading. Losses in materials, financials, industrials and consumer staples were partially offset by gains in healthcare, property and energy stocks.
In the materials space, BHP Billiton was down 0.6% but Rio Tinto was up 0.4%. Westpac bank was down 0.9%, ANZ bank fell 0.4% while National Australia Bank tacked on 0.4%.
Santos rose 3.8% as some investors bought into an unsourced report in the Sydney Morning Herald that cited rumors of a A$15 billion bid for the company by Woodside Petroleum. When asked about the report, Santos and Woodside spokesmen said they would not comment on market speculation.
Korean shares were led lower by profit taking in technology and automaker stocks.
Some experts said investors were cautious after the Portugal ratings downgrade and were also wary ahead of the first-quarter earnings season, which kicks off next month.
Samsung Electronics was down 0.7%, Hynix was off 1.0% and Hyundai Motor dropped 0.9%. Defensive names notched modest gains, with phone company KT up 0.4% and Korea Electric Power Corp. rising 0.8%.
A fall in the yen against the U.S. dollar Wednesday led exporter stocks higher in Japan. Honda Motor was up 0.3% and Toyota Motor rose 0.9%. Technology stocks were mixed with Sharp up 0.9%, Canon up 1.4% while Sony gave up 0.6%.
The New Zealand market was trading flat with data showing economic growth picked up pace in the fourth quarter having little impact. Bellwether Telecom was up 0.5%, construction firm Fletcher Building rose 0.1% while discount retailer The Warehouse lost 4.8%.
In foreign exchange markets, the euro managed to hold steady after falling to a 10-month low against the U.S. dollar Wednesday as markets continued to fret over the lack of a resolution to Greece's fiscal woes.
The euro was fetching $1.3325 against the U.S. dollar, from $1.3324 in New York trade Wednesday, and was at Y122.72 against the yen from Y122.77. The dollar was buying Y92.10, compared with Y92.14.
Elsewhere;
Shanghai’s CSI 300 Index lost 47.54 points, or 1.5%, to 3,229.13.
Korea’s Kospi index picked up 7.38 points, or 0.4%, to 1,688.39
Singapore’s Straits Times Index inched ahead 2.01 points to 2,888.37
Taiwan’s Taiex Index added 15.39 points, or 0.2%, to 7,838.10
New Zealand’s NZX Index progressed 4.82 points, or 0.2%, to 3,237.55
Australia’s S&P/ASX 200 slid 6.10 points, or 0.1%, to 4,885.40
