Asian stock markets traded mostly higher Monday, with China's markets surging as the launch date for stock-index futures was set, but shares in Tokyo ran up against ex-dividend selling ahead of the end of Japan's fiscal year.
In Tokyo, the Nikkei 225 slipped back 9.9 points, to 10,986.47.
The Hang Seng Index in Hong Kong jumped 184.32 points, or 0.9%, to 21,237.43.
In Tokyo, pharmaceutical stocks, which have relatively higher dividend yields, accelerated losses ahead of the close.
Takeda Pharmaceutical shares shed 2.8%, while Eisai sank 3.4% and Astellas lost 2.8%.
Hitachi advanced 4.5%, with the company saying it aims to double the revenue from its lucrative railway business over the mid-term, and wants overseas projects to make up 60% of its revenue in the sector in the fiscal year ending March 2016.
In Hong Kong, Flyke International ended 14% above the shares' IPO price as Flyke's valuation discount to sportswear peers attracted investors, with the stock trading at 12.4 times forecast 2009 earnings, compared with larger peer Li Ning's 31.8 times.
Geely Auto added 1.5%, after having risen more than 5% earlier in the session. Its parent company clinched a long-awaited deal with Ford Motor Co. to acquire Volvo.
Credit Suisse reacted positively to the deal, calling it a "potential transformational catalyst" for Geely as technology transfer could translate into better car quality as well as higher average selling prices and improved margins.
In Seoul, shares pared earlier losses prompted by political concerns after a South Korean naval ship with 46 sailors went missing Friday following an unexplained explosion in waters near the disputed border with North Korea. South Korean officials haven't suggested Pyongyang was involved in the Yellow Sea incident.
Woori Finance added 2.3% on growing expectations that first-quarter earnings will prove solid after the successful block sale of its stake in Hynix Semiconductor earlier this year, said one expert.
Earnings expectations also boosted Hynix, shares of which traded up 2.8%, as well as Kia Motors, up 2.6%.
In the foreign-exchange market, the euro extended its gains on easing concerns over Greece. The common currency was fetching $1.3495 U.S., off an intraday high of $1.3530 U.S. but up from $1.3417 late in New York on Friday.
The euro also changed hands at 124.83 Japanese yen, up from 124.10 yen. The U.S. dollar was buying 92.49 yen, little changed from 92.50 yen.
CHINA
By contrast, China's shares charged ahead on expectations that the April 16 launch of stock-index futures will increase demand for blue-chip issues.
Shanghai’s CSI 300 Index added 83.54 points, or 2.6%, to 3,358.54
Many Chinese banking shares have underperformed the broader market in recent weeks on worries about monetary tightening -- concerns that are still there in the background.
Chinese investors' enthusiasm "may remain capped by expectations of further Chinese tightening," said Sebastien Barbe, head of emerging-market research at Credit Agricole CIB in Hong Kong.
Referring to the China Banking Regulatory Commission, he added: "Still focusing on the risk of property bubbles, the CBRC asked banks to tighten real estate loans, particularly those loans to developers that have used land as collateral without actually having begun to build on those lands."
But enthusiasm was in full force Monday, with shares of Industrial Bank adding 6.5% Insurance companies, which benefit when their stock portfolios rise, also advanced, with Class A shares of Ping An rising 4.2%.
Chongqing Water Group soared 73% on its debut in Shanghai. Wang Wei at Guotai Junan Securities said investors are piling into the stock as the company, a major water supplier in Chongqing, is the biggest listed water company in China.
But further upside is likely limited as the stock's now trading at around 47 times its forecast 2010 earnings per share, higher than the industry average of 43 times, he said.
Elsewhere;
Korea’s Kospi index eased 5.73 points, or 0.3%, to 1,691.99
Singapore’s Straits Times Index moved up 22.86 points, or 0.8%, to 2,929.14
Taiwan’s Taiex Index advanced 70.59 points, or 0.9%, to 7,947.45
New Zealand’s NZX Index progressed 10.62 points, or 0.3%, to 3,251.10
Australia’s S&P/ASX 200 inched ahead 0.40 points to 4,897.30
