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Asia stocks mixed in choppy trade; Nikkei ends up 0.1% on yen

Published 01/17/2013, 02:42 AM
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Investing.com - Asian stock markets were mixed during late Asian trade on Thursday, with shares in Japan swinging between gains and losses as market players monitored movements in the currency market, while concerns over further budgetary battles facing the U.S. came into focus.

During late Asian trade, Hong Kong's Hang Seng Index declined 0.3%, Australia’s ASX/200 Index settled 0.4% higher, while Japan’s Nikkei 225 Index ended up 0.1% after tumbling 2.6% in the previous session.

In Tokyo, the Nikkei initially opened 1% higher before reversing gains to trade 1% lower as market players monitored the yen’s movement against the U.S. dollar.

The index closed modestly higher after a media report quoted Japan's Economy Minister Akira Amari as saying his remark on the yen early this week was misinterpreted.

The Nikkei plunged 2.6% on Wednesday, as the yen firmed against the U.S. dollar and the euro after Amari said that an excessively weak yen could have a negative impact on the economy by pushing up import prices.

The greenback traded at 88.59 against the yen, re-approaching last week’s 31-month high of 89.66. A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.

Shares in struggling television maker Sharp surged 7.3% after a Nikkei business daily report said the firm was discussing a television partnership with Chinese computer manufacturer Lenovo Group.

Sony saw shares rally 5.7% after Goldman Sachs raised its rating on the stock to “neutral” from “sell”.

On the downside, shares in GS Yuasa Group, a supplier of batteries to Boeing’s 787 Dreamliner aircraft, tumbled 5% after the Federal Aviation Administration grounded all 787 jets, pending tests on whether the planes’ batteries are safe.     

Meanwhile, in Hong Kong, the Hang Seng edged lower as investors took to the sidelines ahead of the release of key Chinese economic data later in the week.

The Asian nation is slated to release data on fourth quarter gross domestic product on Friday, along with reports on industrial production and retail sales.

The China banking and insurance sector were the biggest drags on the index, as traders booked profits on recent gains. China Life Insurance Group shares fell 2.5%, Ping An Insurance Group declined 0.7%, while Bank of China Hong Kong lost 1.2%.

Elsewhere, in Australia, the benchmark ASX/200 Index inched up to a 20-month high, after dismal employment data boosted hopes for a rate cut in the near-term.

Data released earlier showed that the number of employed people declined by 5,500 last month, confounding expectations for an increase of 4,500. The unemployment rate ticked up to 5.4% from 5.3% in November.

The nation’s big four banks all rose, with ANZ Banking Group gaining the most, up 0.8%.

Looking ahead, European stock market futures pointed to a modestly lower open. The EURO STOXX 50 futures pointed to a loss of 0.1% at the open, France’s CAC 40 futures shed 0.1%, London’s FTSE 100 futures eased down 0.2%, while Germany's DAX futures pointed to a drop of 0.1% at the open.  

Later in the day, the U.S. was to produce official data on building permits and housing starts, in addition to the weekly government report on initial jobless claims and data on manufacturing activity in Philadelphia.

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