Asian markets ended mixed Monday as Japanese stocks declined on the nation's disappointing economic growth while Chinese banks advanced after Agricultural Bank of China sold additional shares to raise a record amount from its initial public offering.
Japan’s Nikkei 225 Index stumbled 56.79 points, or 0.6%, to end the week’s first session at 9,196.67.
Hong Kong’s Hang Seng Index reacquired 40.55 points, or 0.2%, to 21,112.12
The rate of expansion was much smaller than the revised 4.4% growth in the January-March quarter and worse than the 2.3% growth that economists expected. The result meant that China surpassed Japan as the world's second-largest economy in the second quarter of 2010, putting China on track to top Japan for full-year GDP.
However, one expert said that investors were unwilling to sell too heavily. That's because of local media reports that Prime Minister Naoto Kan and Bank of Japan Gov. Masaaki Shirakawa may meet this week to exchange views on the yen's recent rise and ways to deal with it.
The yen rose against the U.S. dollar, making Japanese goods more expensive to the rest of the world. Exporters dropped as a result, with Toshiba Corp. falling 1%, Sony Corp. sliding 3% and Honda Motor shedding 0.9%.
Among property shares, Sino Land tumbled 5.7%, Sun Hung Kai Properties gave up 4.1% and Henderson Land Development Co. shed 4.9% in Hong Kong.
In foreign exchange markets, the U.S. dollar was buying 85.79 yen compared with 86.28 yen in late New York trade Friday, while the euro was at 109.69 yen compared with 110.21 yen. The euro was at $1.2782 U.S., compared with $1.2757 U.S.
CHINA
China markets climbed after AgBank said Sunday that it has fully exercised an option to sell additional shares to investors on the Shanghai portion of its IPO.
Shanghai’s CSI 300 Index gained 66.54 points, or 2.3%, to 2,922.08
The sale boosted the size of the lender's IPO in Shanghai and Hong Kong to a record $22.1 billion U.S., the world's largest ever.
Chinese banks also helped Hong Kong stocks advance, although shares of property developers dropped sharply after the local government on Friday announced restrictions on bank lending for mortgages.
Shares of China Construction Bank Corp. rose 1.1% and Industrial & Commercial Bank of China gained 0.7% in Hong Kong. In Shanghai, both stocks rose 1.5%.
Elsewhere;
Singapore’s Straits Times Index shaved off 6.46 points or 0.2%, to 2,933.51
Korea’s Kospi index slid 2.93 points, or 0.2%, to 1,743.31
Taiwan’s Taiex Index tacked on 49.64 points, or 0.6%, to 7,941.22
New Zealand’s NZX index inched ahead 8.40 points, or 0.3%, to 3,023.53
Australia’s S&P/ASX 200 lost 21.10 points, or 0.5%, to 4,438.50
