Asian shares mixed as China, S. Korea weigh

HONG KONG – Asian markets were mixed on Friday after the Dow in New York rose for the first time in six sessions but a rate hike in South Korea and persistent fears over tightening in China kept dealers nervous.

Tokyo gained 0.50 percent, or 47.29 points, to 9,514.44 while Sydney rose 0.27 percent, or 12.5 points, to 4,562.1.

But Hong Kong dipped 0.83 percent and Shanghai was flat in the afternoon while Seoul dropped 1.19 percent, or 24.75 points, to 2,046.67.

The region was given an upbeat lead from New York, where markets were higher after the US trade deficit unexpectedly narrowed in April thanks to a recovery in exports and a dip in imports.

The Dow rose 0.63 percent, its first rise this month, while the broader S&P 500 added 0.74 percent and the Nasdaq climbed 0.35 percent.

The Nikkei posted its fourth straight rise after taking several blows in recent weeks over fears for the local economy.

“The Nikkei has ended in positive territory… despite a series of falls in US stocks because Japan shares are seen as undervalued,” said Toshiyuki Kanayama, market analyst at Monex.

Investors in Hong Kong and Shanghai were edgy as they looked to Tuesday’s release of key inflation figures from Beijing to see if the government’s tightening measures to cool the economy have worked.

Earlier Friday, figures showed China’s export growth had eased slightly but was still at a record high, while imports surged, soothing concerns that the economy was headed for a heavy landing.

A recent slew of figures had pointed to the world’s number two economy slowing down from its robust growth, fuelling concerns that the global recovery could be jeopardized.

Seoul, which had been more than one percent higher in the early morning, slumped after the central bank said it would hike interest rates 0.25 percentage points as it tries to battle inflation.

On currency markets the euro eased to $1.4482 from $1.4509 late in New York Thursday, and to 115.95 yen from 116.63. The dollar weakened to 80.05 yen from 80.32.

New York’s main contract, light sweet crude for July delivery, lost six cents to $101.87 a barrel and Brent North Sea crude for July delivery rose 11 cents to $119.68.

Gold opened at $1,543.50-$1,544.50 an ounce in Hong Kong, down from the previous day’s close of $1,536.50-$1,537.50.

In other markets:

— Taipei tumbled 1.81 percent, or 163.12 points, to 8,837.82.

TSMC fell 2.08 percent to Tw$75.3 while Acer was 0.78 percent lower at Tw$50.7.

— Manila fell 0.11 percent, or 4.76 points, 4,219.58.

Philippine Long Distance Telephone was up 0.3 percent at 2,300 pesos, SM Investments fell 1.8 percent to 540 pesos and San Miguel gained 0.2 percent to 115.

— Wellington closed flat, edging up 1.87 points to 3,490.62.

Telecom shed 0.4 percent to NZ$2.315 and Fletcher Building rose 1.1 percent to NZ$8.66.