Asia stocks mixed; weak yen boosts Nikkei to 8-month high

Investing.com - Asian stock markets were mixed on Thursday, as renewed concerns over China’s economic growth outlook weighed on appetite for riskier assets, while the Nikkei rallied to an eight-month high, as exporters rose on the back of a weaker yen.

During late Asian trade, Hong Kong's Hang Seng Index inched up 0.15%, Australia’s ASX/200 Index dipped 0.22%, while Japan’s Nikkei 225 Index rose 0.72%.

Concerns over China’s growth outlook resurfaced after Premier Wen Jiabao said on Wednesday that China must embrace slower growth and bolder political reform to keep its economy from faltering. He also dampened hopes for any near-term easing measures in the country's property sector.

A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of Europe’s debt crisis.

Wen’s comments weighed on property developers in Hong Kong. Shares in Sino Land dropped 1.2%, China Overseas Land & Investment fell 2.65%, while mainland developers Evergrande Real Estate Group and Agile Property Holdings slumped 1.5% and 2.1% respectively

Weakness in raw material producers also weighed, as metal and oil prices declined on the New York Mercantile Exchange. Gold miners Zijin Mining Group and Zhaojin Mining Industry tumbled 3.4% and 6.2% respectively, while shares in oil major CNOOC declined 1.7%.  

On the upside, shares in Chinese internet company Tencent jumped 4.6% after saying its fourth-quarter profit rose 15% as it boosted sales of online games and social-networking services.

Elsewhere, in Japan, the Nikkei rallied to an eight-month closing high, boosted by strong gains in exporters and ongoing weakness in the yen.

The yen dropped to the lowest level since April against the U.S. dollar. A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.

Consumer electronics giant Sony rose 1.8%, digital camera maker Canon jumped 3.7%, while automakers Toyota and Nissan rallied 2.9% and 3.45%.

Shares in Ricoh soared 7.9% after Citigroup upgraded its rating on the stock to “buy” from “neutral”.

But shares in Sharp underperformed, tumbling 5.3% a day after the electronics firm named a new president and amid reports of delays with the firm’s delivery of liquid-crystal-delay panels for Apple’ iPad devices.

Meanwhile, losses in mining heavyweights weighed on shares in Australia. Gold producer Newcrest Mining dropped 3.3%, while BJP Billiton and Rio Tinto retreated 1.2% and 0.6% respectively.

Department store operator Myer Holdings also contributed to losses, declining 3.4% after reporting a 20% drop in first half net profit and warning that 2012 sales would likely fall.

On the upside, Fortescue Metals rose 2.6% after attracting strong interest for its USD1 billion high-yield U.S. bond offering.

Looking ahead, the outlook for European stock markets was mildly upbeat. The EURO STOXX 50 futures pointed to a gain of 0.1%, France’s CAC 40 futures eased up 0.1%, London’s FTSE 100 futures pointed to a flat open, while Germany's DAX futures pointed to a rise of 0.2% at the open.

Later in the day, the U.S. was to release government data on producer price inflation, as well as official data on unemployment claims. The country was also to produce reports on manufacturing activity in New York and Philadelphia.