Asian shares mixed after Wall Street sell-off
A man stops and looks at Japan’s Nikkei stock update on an electric board at a securities firm in Tokyo on March 12, 2014. Asia’s markets were mixed on Thursday, March 27, with Japanese shares boosted by a weaker yen, although traders remain on edge over the Crimean crisis. AP PHOTO/JUNJI KUROKAWA
HONG KONG—Asia’s markets were mixed on Thursday, with Japanese shares boosted by a weaker yen, although traders remain on edge over the Crimean crisis.
Tokyo rallied 1 percent, or 145.73 points, to 14,622.89, Seoul climbed 0.70 percent, or 13.66 points, to 1,977.97 but Sydney eased 0.50 percent, or 26.7 points, to 5,350.1.
Hong Kong fell 0.24 percent, or 53.30 points, to finish at 21,834.45 and Shanghai slipped 0.83 percent, or 17.08 points, to 2,046.59.
With few leads for direction, investors were given a lift by better-than expected data on the US retail sector, a key driver of the economy.
The Commerce Department said durable goods orders rose 2.2 percent in February from the previous month, beating forecasts of a 1.0 percent decline.
However, on Wall Street the Dow fell 0.60 percent, the S&P 500 declined 0.70 percent and the Nasdaq sank 1.43 percent.
In Tokyo, the Nikkei bounced back from early losses and the yen dipped against the dollar.
The greenback bought 102.10 yen in afternoon trade, from 102.00 yen late in New York.
Analysts said the focus is moving to next week’s data release, including the Bank of Japan’s quarterly tankan business sentiment survey Tuesday and US non-farm payrolls on Friday.
Japan’s higher sales tax increase also kicks in, with many investors expecting a downturn in sentiment.
Credit Agricole’s executive director of foreign exchange Yuji Saito told Dow Jones Newswires that “such an outcome will increase investor expectations for additional BoJ easing, which is good for the dollar against the yen.”
Prime Minister Shinzo Abe pushed through the controversial sales tax hike as part of a plan to reduce Japan’s yawning national debt but critics say it will knock the country’s nascent economic recovery off course.
In other forex deals the euro bought $1.3770 and 140.49 yen compared with $1.3788 and 140.57 yen.
The single currency is sharply down from $1.3818 and 141.34 yen in Tokyo Wednesday, as European and US dealers sold it following comments from the European Central Bank that hinted at a further loosening of monetary policy to avert deflation.
Investors are keeping an eye on events in Europe after Russia took control of Crimea from Ukraine this month.
In Washington, US Defense Secretary Chuck Hagel said Russia had moved more troops closer to Ukraine’s borders in recent days despite assurances it will not invade.
While tensions have eased, markets remain wary as President Barack Obama said Wednesday that the United States and its allies needed to stand firm in opposing Moscow’s takeover of Crimea.
There are fears about the long-term ramifications of the stand-off, with Europe hugely reliant on Russia for its energy.
On oil markets New York’s main contract, West Texas Intermediate for May delivery, fell nine cents to $100.17 a barrel in afternoon trade and Brent North Sea crude for May eased 14 cents to $106.89.
Gold fetched $1,292.97 an ounce at 1105 GMT compared with $1,314.55 late Wednesday.
In other markets:
— Bangkok lost 0.33 percent, or 4.49 points, to 1,355.95.
Bangchak Petroleum gained 2.48 percent to 31.00 baht, while Thai Airways International dropped 3.57 percent to 13.50 baht.
— Mumbai rose 0.54 percent, or 119.07 points, to end at 22,214.37 points.
HDIL rose 8.35 percent to 4.15 rupees to 53.85 rupees per share while Jaypee Infratech rose 6.01 percent, or 1.10 rupees, to 19.40 rupees per share.
— Singapore rose 0.61 percent, or 19.14 points, to close at 3,162.46.
Farm commodities supplier Olam was up 0.45 cents to Sg$2.22 and real estate developer Capitaland was unchanged at Sg$2.78.
— Jakarta ended down 0.11 percent, or 5.18 points, at 4,723.06.
Retailer Hero Supermarket slipped 1.79 percent to 2,750 rupiah, while Indah Kiat Pulp & Paper rose 4.61 percent to 1,475 rupiah.
— Kuala Lumpur’s main stock index gained 0.42 percent, or 7.73 points, to 1,846.87.
AirAsia X added 6 percent to 0.79 ringgit, while SapuraKencana Petroleum rose 1.8 percent to 4.47. Malayan Banking fell 0.1 percent to 9.65 ringgit.
— Taipei rose 0.48 percent, or 42.30 points, to 8,779.57.
Taiwan Semiconductor Manufacturing Co. was 0.43 percent higher at Tw$116.0 while Formosa Plastics climbed 2.57 percent to Tw$75.9.
— Wellington was flat, edging up 1.65 points to 5,126.53.
Telecom advanced 1.25 percent to NZ$2.42 and Fletcher Building gained 1.59 percent to NZ$9.57.
— Manila was 0.52 percent lower, shedding 32.81 points to 6,315.69.
Petron Corp. fell 12.69 percent to 11.70 pesos, Alliance Global Group slipped 0.52 percent to 28.80 pesos and Universal Robina was 0.59 percent lower at 135.60 pesos.
