A man walks past an electronic stock indicator of a securities firm in Tokyo, indicating Japan’s benchmark Nikkei 225 slipped 437.34 points to 17,376.04 at one point Wednesday, Dec. 10, 2014. Asian stock markets were mostly lower Wednesday as data from both China and Japan pointed to continued weakness in the world’s second- and third-largest economies. AP
HONG KONG–Asian markets were mixed Wednesday, with fresh fears about Greece and further losses in oil prices offset by a strong rebound in Shanghai, a day after suffering its worst loss in five years.
The yen made further inroads against the dollar as last week’s positive sentiment gave way to caution.
Tokyo–taking another hit from the strengthening yen–sank 2.25 percent, or 400.80 points, to 17,412.58.
Sydney fell 0.45 percent, or 23.7 points, to 5,259.0 and Seoul slipped 1.29 percent, or 25.39 points, to 1,945.56.
Shanghai clawed back some of a more than five percent drop on Tuesday, surging 2.93 percent, or 83.74 points, to end at 2,940.01, while Hong Kong added 0.16 percent, or 38.69 points, to 23,524.52.
Heavy losses in Asia on Tuesday dragged down European and US markets, exacerbated by news that Greece had brought forward a presidential election, raising fears of fresh political instability.
Members of parliament agreed to hold a poll to replace President Karolos Papoulias on December 17 instead of February, when it was due.
The election is a key test for Prime Minister Antonis Samaras, who will be forced to call snap general elections if his candidate fails to garner enough support.
Samaras said he brought it forward to clear “clouds of political instability in Greece and political uncertainty over Greece abroad.”
Analysts warned the uncertainty could stall fiscal reforms that are required as part of Greece’s bailout deal with the European Union and International Monetary Fund.
Greek stocks plunged 12.8 percent–the largest one-day drop in 27 years–as investors feared a return to the dark days of the eurozone debt crisis, which saw Athens almost leave the currency bloc.
The euro fell to 147.48 yen in Tokyo Wednesday from 148.01 yen while fetching $1.2368 against $1.2378.
The unease spooked dealers on Wall Street, although initial sharp losses were pared by the end of trade Tuesday. The Dow fell 0.29 percent while the S&P 500 was flat and the Nasdaq added 0.54 percent.
Yen rises against dollar
In Shanghai the benchmark composite index, which had surged about 20 percent since last month helped by an interest rate cut, rallied toward the close on increasing speculation that Beijing will further ease monetary policy.
The market tumbled in the morning after data showed inflation had fallen to a five-year low of 1.4 percent in November, fanning fears of deflation.
The dollar was at 119.20 yen Wednesday, down from 119.63 yen in New York Tuesday afternoon and sharply lower than the levels above 121.00 yen at the start of the week, as dealers shifted into safer assets in the face of market uncertainty.
However, the dollar’s uptrend still remains intact, said Osamu Takashima, chief FX strategist at Citigroup Global Markets Japan.
“It wouldn’t be a surprise” if the dollar rebounds toward the technically important level of 121.30 yen within several days, he told Dow Jones Newswires.
Oil prices–which have been hammered by a global supply glut–fell on expectations of a build-up in US crude stockpiles, indicating slack demand in the world’s top oil consumer during the winter season.
US benchmark West Texas Intermediate for January delivery slipped $1.19 to $62.63, while Brent crude was down $1.12 at $65.72 in afternoon trade.
Oil rose slightly in New York after the US Department of Energy reduced its 2015 US production forecast marginally.
Gold was at $1,227.00 an ounce compared with $1,204.67 late Tuesday.
In other markets:
— Taipei fell 1.06 percent, or 96.74 points, to 9,032.16.
Taiwan Semiconductor Manufacturing Co. slipped 1.45 percent to Tw$136.0 while Hon Hai Precision Industry was 0.44 percent lower at Tw$89.6.
— Wellington fell 0.35 percent, or 19.36 points, to 5,523.58.
Air New Zealand was down 1.04 percent at NZ$3.27 and Chorus slipped 0.93 percent to NZ$2.665.
— Manila ended 0.12 percent lower, slipping 8.79 points to 7,175.08.
Philippine Long Distance Telephone Co. dipped 0.57 percent to 2,814 pesos while Universal Robina Corp. slid 1.04 percent to 190.70.
— Kuala Lumpur gained 1.58 percent, or 27.42 points, to close at 1,765.52.
Budget carrier AirAsia lost 1.4 percent to 2.73 ringgit.
— Jakarta ended up 0.84 percent, or 43.10 points, at 5,165.41.
Carmaker Astra International rose 0.70 percent to 7,150 rupiah while retailer Ramayana Lestari Sentosa slipped 2.65 percent to 735 rupiah.
— Singapore closed up 0.18 percent, or 5.97 points, at 3,325.81.
Real estate developer CapitaLand gained 0.31 percent to Sg$3.29 while United Overseas Bank rose 1.19 percent to Sg$24.68.
— Bangkok was closed for a public holiday.
— Mumbai closed at 27,831.10, rising 0.12 percent, or 34.09 points.
Reliance Industries was down 0.77 percent at 932.05 rupees and Hindustan Unilever was down 1.79 percent at 798.90 rupees.