HONG KONG—Asian stocks were mostly lower on Wednesday, weighed down by concerns over a slowdown in China’s economy, while oil prices edged back up after big falls in New York.
Receding concerns over the eurozone debt crisis provided support for the euro, which continued its thrust upwards against the yen and greenback.
Tokyo fell 0.55 percent, or 55.50 points, to 10,086.49 in the first trading day after ending Monday at its highest level since the quake-tsunami disaster in March last year. The market was closed Tuesday for a public holiday.
Sydney fell 0.48 percent, or 20.7 points, to 4,254.3, while Seoul fell 0.73 percent, or 14.92 points, to 2,027.23.
Hong Kong shed 0.15 percent, or 31.61 points, to 20,856.63 while Shanghai was flat, nudging 1.36 points higher to 2,378.20.
Concerns about China were raised on Tuesday when BHP Billiton said the country’s demand for iron ore looked to be flattening as its economy slows, with exports weakening.
The comments by BHP’s iron ore president Ian Ashby added to recent data that showed China’s biggest trade deficit in February since records began, manufacturing activity plodding and inflation at its lowest since June 2010.
It also comes after China cut its growth target to 7.5 percent for 2012 from last year’s 9.2 percent growth and 10.4 percent in 2010.
Regional countries rely on fast-growing China to help drive their own economic expansion.
“Clearly any signs of a Chinese slowdown will manifest negatively,” Christopher Gore, currency analyst at Go Markets, said in a note according to Dow Jones Newswires.
“However the question remains, are we witnessing a hard-landing scenario in motion or China’s grand plan to promote sustainable long-term growth?” he added.
The news weighed on US shares on Tuesday. On Wall Street the Dow index lost 0.52 percent, the S&P 500 index fell 0.30 percent and the tech-heavy Nasdaq was 0.14 percent lower.
Oil prices rose on news of a huge fall in reserves in the United States.
The cost of the black gold has been fueled by the ongoing standoff between Iran and the West over Tehran’s nuclear program, which Washington and its allies claim is being used to build a bomb.
New York’s main contract, light sweet crude for delivery in May, rose 59 cents to $106.66 Wednesday and Brent North Sea crude for May advanced 31 cents to 124.43.
Prices fell heavily on Tuesday in New York after Saudi Arabia said it was ready to help stabilize the market by making up for a supply shortfall to compensate for lost Iranian output caused by strict US sanctions.
The International Monetary Fund on Tuesday warned that a sharp spike in oil prices could hammer global growth.
IMF managing director Christine Lagarde estimated that crude oil prices could jump by up to 30 percent if Iranian supplies were disrupted, causing “serious consequences” for the global economy.
The euro rose further as European sovereign debt worries eased after Greece on Tuesday received a payment of 7.5 billion euros under its second international bailout.
The common unit bought 111.32 yen in afternoon Asian trade on Wednesday, up from 110.66 yen in New York late Tuesday.
It also gained to $1.3272 from $1.3222, while the dollar was at 83.85 yen, from 83.70 yen.
The dollar may climb back above 84.00 yen if February home sales due later Wednesday show further signs of improvement in the US housing market, said Masafumi Yamamoto, chief forex strategist at Barclays Capital.
Gold was at $1,655.92 an ounce at 1020 GMT, compared with $1,648.48 late Tuesday.
In other markets:
— Singapore closed up 0.10 percent, or 2.90 points, at 3,005.63.
United Overseas Bank gained 0.77 percent to 18.37 while Keppel Corp fell 0.55 percent to 10.84.
— Taipei gained 0.12 percent, or 9.24 points, to 7,981.94.
Taiwan Semiconductor Manufacturing Co. rose 2.04 percent at Tw$84.9 while Hon Hai Precision was 0.49 percent higher at Tw$102.5.
— Manila fell 1.26 percent, or 64.30 points, to 5,037.94.
Philippine Long Distance Telephone fell 2.62 percent to 2,594 pesos while International Container Terminal Services edged down 0.07 percent to 62.95 pesos.
— Wellington fell 0.14 percent, or 5.06 points, to 3,481.96.
Telecom shed 2.82 percent to NZ$2.42 and Fletcher Building lost 0.29 percent to NZ$6.90 while Contact Energy rose 1.28 percent to NZ$4.74.
— Kuala Lumpur rose 0.31 percent, or 4.91 points, to 1,582.53.
Plantations giant IOI Corp. climbed 1.7 percent to 5.38 ringgit, British American Tobacco rose 1.5 percent to 53.20 ringgit and gaming firm Genting Malaysia slid 0.3 percent to 3.86 ringgit.
— Jakarta added 0.35 percent, or 14.07 points, to end at 4,036.23.
Car maker Astra rose 2.6 percent to 71,650 rupiah and carrier Garuda jumped 3.2 percent to 640 rupiah.
— Bangkok rose 0.93 percent, or 11.07 points, to 1,207.67.
Siam Cement added 0.28 percent to 356 baht, while Banpu lost 0.33 percent to 608 baht.
— Mumbai rose 285.53 points or 1.65 percent, to 17,601.71, its second straight day of gains.