Asian stocks mixed after Wall St. record, Tokyo recovers
People walk past at electronic stock indicator in Tokyo on Tuesday, Nov. 18, 2014. Asian markets were mixed Tuesday, with Tokyo leading gainers on bargain-buying after the previous day’s sell-off, while Wall Street provided some support with another record close. AP PHOTO/SHIZUO KAMBAYASHI
HONG KONG–Asian markets were mixed Tuesday, with Tokyo leading gainers on bargain-buying after the previous day’s sell-off, while Wall Street provided some support with another record close.
Hong Kong and Shanghai extended their previous day’s losses, despite a new trading link-up between the two exchanges.
Tokyo–which lost almost three percent Monday on news Japan’s economy was in recession–jumped 2.18 percent, or 370.26 points, to 17,344.06.
Seoul added 1.20 percent, or 23.38 points, to 1,967.01 and Sydney fell 0.24 percent, or 12.8 points, to close at 5,399.7.
Hong Kong lost 1.13 percent, or 267.91 points, to end at 23,529.17 and Shanghai shed 0.71 percent, or 17.64 points, to 2,456.37.
Tokyo closed before Prime Minister Shinzo Abe said he would dissolve the lower house of parliament on Friday, ahead of a snap general election, and was delaying an expected sales tax rise.
The announcement came after data Monday showed the Japanese economy was in recession, hammered by a sales tax hike in April.
News of the recession initially sent the dollar soaring above 117 yen for the first time since mid-2007 before it sank below 116 yen in Asia.
But the greenback clawed back most of its losses to end Monday at 116.63 yen in New York. On Tuesday in Tokyo it was at 116.70 yen.
Euro edges up
The euro edged up against the dollar after sinking Monday in response to comments from European Central Bank chief Mario Draghi that the lender is ready to step up its asset purchases to counter ultra-low inflation.
The single currency bought $1.2482 and 145.68 yen compared with $1.2448 and 145.19 yen.
US markets took the Japan figures in their stride. The S&P 500 rose 0.07 percent to a new record, while the Dow also gained 0.07 percent but fell just short of another all-time high. The Nasdaq fell 0.37 percent.
In Hong Kong and Shanghai investors sold up for a second day after data showed new home sales in China fell again in October. Increasing weakness in the property sector has been partly blamed for the slowdown in the world’s No. 2 economy and key driver of global growth.
And for a second day mainlanders largely stayed away from investing in Hong Kong after the opening of the cross-exchange Connect scheme Monday.
The tie-up allows international investors to trade selected stocks on Shanghai’s tightly restricted exchange and let mainland investors buy shares in Hong Kong.
But China-based investors bought just 7.6 percent of their daily allowance of Hong Kong shares by the end of the day Tuesday, while Hong Kong dealers picked up less than a third of their Shanghai quota.
On Monday, the day of the Connect launch, dealers in Hong Hong bought up their quota of mainland shares, but mainland dealers used up less than 20 percent.
Oil prices fell on dimming expectations that the OPEC oil cartel will cut output, analysts said.
US benchmark West Texas Intermediate for December delivery fell 14 cents to $75.50 while Brent crude for January was down 39 cents at $78.92 in afternoon trade.
Gold was at $1,202 an ounce, compared with $1,186.55 late Monday.
In other markets:
— Mumbai was little changed Tuesday, ending just 0.05 percent, or 14.59 points, lower at 28,163.29.
Sun Pharmaceutical Industries fell 1.94 percent to 865.35 rupees, while Sesa Sterlite Limited gained 4.09 percent to 247.05 rupees.
— Bangkok climbed 0.78 percent, or 12.20 points, to 1,581.27.
Bangchak Petroleum soared 4.23 percent to 37 baht, while Bank of Ayudhya rose 3.65 percent to 49.75 baht.
— Malaysia’s main stock index rose 11.90 points, or 0.66 percent, to close at 1,818.38.
Public Bank added 0.22 percent to 18.30 ringgit, Malayan Banking gained 0.42 percent to 9.59 while Genting Malaysia lost 0.98 percent to 4.03 ringgit.
— Jakarta ended up 0.96 percent, or 48.53 points, at 5,102.47.
Cigarette maker Gudang Garam rose 3.70 percent to 62,425 rupiah, while food producer Indofood Sukses Makmur lost 0.37 percent to 6,650 rupiah.
— Singapore rose 0.76 percent, or 25.06 points, to 3,313.73.
Public transport firm ComfortDelgro rose 1.53 percent to Sg$2.65 while oil rig maker Keppel Corp. gained 0.22 percent to Sg$9.18.
— Taipei fell 0.28 percent, or 25.32 points, to 8,859.07.
Taiwan Semiconductor Manufacturing Co. eased 1.13 percent to Tw$131.5 while Hon Hai Precision was 0.10 percent lower at Tw$95.5.
— Wellington added 0.30 percent, or 14.80 points, to end at 5,505.03.
Spark rose 0.31 percent to NZ$3.275 and Nuplex gained 0.96 percent to NZ$3.15.
— Manila added 0.64 percent, or 45.94 points, to 7,275.66.
Philippine Long Distance Telephone was up 0.07 percent to 2,994 pesos and South Asia Cement Holdings surged 13.12 percent to 2.50 pesos but Alliance Global fell 2.69 percent to 23.55 pesos.
