Asian stocks mixed, link date lifts Hong Kong and Shanghai

A woman cycles past an electronic stock board of a securities firm in Tokyo, Monday, Nov. 10, 2014. Asian stock markets were mixed Monday, with Japanese shares succumbing to profit-taking while Hong Kong and Shanghai rallied after a launch date was announced for a trading link between their stock exchanges. AP PHOTO/KOJI SASAHARA

HONG KONG–Asian markets were mixed Monday, with Japanese shares succumbing to profit-taking while Hong Kong and Shanghai rallied after a launch date was announced for a trading link between their stock exchanges.

The dollar retreated from multi-year highs despite another record close on Wall Street that came in response to broadly upbeat jobs data.

Tokyo slipped 0.59 percent, or 99.85 points, to finish at 16,780.53 after ramping up gains of more than 10 percent in the previous six sessions as the Bank of Japan unveiled fresh monetary easing measures.

Hong Kong rose 0.83 percent, or 194.46 points, to 23,744.70 and Shanghai jumped 2.30 percent, or 55.50 points, to 2,473.67.

Seoul closed up 0.95 percent, or 18.36 points, at 1,958.23 while Sydney fell 0.45 percent, or 25.1 points, to 5,524.0.

Dealers in Hong Kong and Shanghai cheered news that the delayed trading link between the two stock exchanges would start on November 17.

The connection is expected to allow the equivalent of US$3.8 billion a day in cross-border transactions.

However, the euphoria over the announcement was tempered by news that Chinese inflation was unchanged at 1.6 percent in October, well off the government’s target of 3.5 percent and adding to fears about the strength of the world’s No. 2 economy.

Data Saturday also showed growth in exports and imports slowed last month.

In the United States the Dow and S&P 500 ended Friday with a third straight record close after the Labor Department said the economy added 214,000 jobs last month.

While that figure was weaker than the forecast 235,000, the previous two months’ job gains were revised upward and the unemployment rate slipped to a six-year low.

Dollar retreats against yen

The Dow edged up 0.11 percent and the S&P 500 nudged 0.03 percent higher, but the Nasdaq eased 0.13 percent.

The result weighed on the dollar, which slipped from a seven-year high against the yen.

The greenback was at 113.96 yen Monday, down from 114.62 yen in New York Friday and well off the 115.39 yen in Tokyo earlier Friday.

The euro bought $1.2480 and 142.14 yen against $1.2456 and 142.78 yen in US trade.

Japan’s Nikkei slipped on the stronger yen.

“Given that a great deal of the market’s gains over the last several days and months have come on the back of a stronger US currency, its weakness naturally invites profit-taking,” said Nomura Securities equity market strategist Junichi Wako.

But he added that “a severe sell-off is unlikely,” partly because the Bank of Japan and government pension funds are known to be buying on the dip.

On oil markets US benchmark West Texas Intermediate for December delivery rose 20 cents to $78.85. Brent crude for December was up 31 cents at $83.70 in afternoon trade.

Gold was at $1,171.30 an ounce, compared with $1,144.92 late Friday.

In other markets:

— Mumbai was flat rising just 0.02 percent, or 6.10 points, to 27,874.73.

Diversified conglomerate ITC rose 4.27 percent to 370.85 rupees, while Oil and Natural Gas Corporation fell 3.59 percent to 394.55 rupees.

— Taipei added 1.54 percent, or 137.36 points, to 9,049.98.

Taiwan Semiconductor Manufacturing Co. rose 2.67 percent to Tw$134.5 while Hon Hai Precision Industry closed 2.08 percent higher at Tw$98.3.

— Wellington rose 0.95 percent, or 51.35 points, to 5,470.34.

Fletcher Building added 2.87 percent to NZ$8.60 and Spark was up 3.27 percent at NZ$3.155.

— Manila closed 0.19 percent lower, giving up 13.60 points to 7,192.12.

Bloomberry Resorts fell 0.84 percent to 14.18 pesos but Philippine Long Distance Telephone added 0.27 percent to 2,950 pesos.