Asian markets logged modest moves Thursday, pressured by the Federal Reserve's downgrade of its outlook on the U.S. economy.
Australia's resource shares outperformed amid optimism that the nation's new prime minister will soften the government's stance on a controversial mining tax.
Japan’s Nikkei 225 average inched up 4.64 points to 9,928.34
Hong Kong’s Hang Seng index stumbled 123.12 points, or 0.6%, to 20,733.49
Australian shares reversed earlier gains, which came after Julia Gillard's elevation to prime minister, but resources stocks still finished higher.
Kevin Rudd's leadership had been undermined by his decision to shelve a proposed cap-and-trade system meant to fight climate change and the planned tax on "super profits" by Australia's mining companies.
Miners outperformed in Sydney, although they closed broadly off their earlier highs, with BHP Billiton Ltd. up 1.3%, Rio Tinto Ltd. 1.7% higher, Fortescue Metals Group Ltd. up 2.5% and MacArthur Coal Ltd. up 6.4%.
Major banks declined with National Australia Bank Ltd. losing 1.2%. Macquarie Group Ltd. fell 4.7% after it said market conditions were increasingly uncertain and adversely impacting some activity levels.
The Tokyo market finished higher after a two-session decline, with buying seen in defensive sectors such as pharmaceuticals, with Eisai Co. up 1.2%.
Exporters fell as the Fed's subdued view of the U.S. economic recovery lifted the yen against the U.S. dollar.
Toyota Motor Corp. lost 0.8%, Nissan Motor Co. fell 1.2% and Sony Corp. closed 1.1% lower. But Softbank Corp. rose 2.8% as Apple Inc.'s iPhone, which it distributes in Japan, made its debut in local stores.
In Hong Kong, some developers slightly outperformed after the Fed left its policy rate at its record low level, which is reassuring for Hong Kong property stocks because the local currency is pegged to the U.S. dollar. Sino Land Co. rose 0.7% and Hang Lung Properties Ltd. ended 0.8% higher.
Citic Pacific Ltd. rose 0.7% while Yanzhou Coal Mining Co. gained 0.9%, with both stocks taking cues from the appointment of Gillard as the new Australian prime minister. Investors were anticipating a watered-down version of the proposed mining tax and buying into both companies, which have exposure to Australian mining assets.
Shares in Korea finished higher after a choppy early session, led by buying in construction and tech stocks.
Hyundai Engineering & Construction Co. rose 2.4%, Daewoo Engineering & Construction Co. added 6.8% and GS Engineering & Construction Corp. gained 3%.
Samsung Electronics Co. added 1.9%, and Hynix Semiconductor Inc. climbed 0.4% on continued hopes of strong earnings.
In foreign exchange markets, the U.S. dollar was little changed against the euro, recovering from earlier weakness from the Fed's downgrade to its outlook for the U.S. economy.
The single currency was fetching $1.2315 against the dollar, from $1.2311 late Wednesday in New York, and was at 110.20 yen from 110.60 yen. The dollar was buying 89.65 yen, from 89.88 yen.
CHINA
Shares in China closed slightly lower as the market continued to mull the impact of the government's decision to remove export tax rebates on steel products.
Shanghai’s CSI 300 Index doffed one point to 2,757.50
Steel plays pulled back from earlier gains, with Baoshan Iron & Steel Co. down 0.5% and Wuhan Iron & Steel Co. losing 0.9%.
Elsewhere;
Singapore’s Straits Times Index moved 23.44 points, or 0.8%, lower to 2,847.61
Korea’s Kospi index regained 14.05 points, or 0.8%, to 1,739.87
Taiwan’s Taiex Index picked up 7.74 points, or 0.1%, to 7,589.89
New Zealand’s NZX index shed 4.82 points, or 0.2%, to 3,049.47
Australia’s S&P/ASX 200 took off 6.40 points, or 0.1%, to 4,479.70
