Chicago, IL 3/15/2012 (StreetBeat) – Asian shares swung between gains and losses before closing on a mixed note Thursday as renewed concerns about Chinese growth tempered increasing optimism over the recovery in the U.S. economy.Chinese Premier Wen Jiabao yesterday warned that the nation must embrace slower growth and bolder political reforms as it grapples with the implications of the shift in its economy from an investment-led growth module to one of greater consumption.
The downbeat comments along with market reports that China is already in the midst of a so-called 'hard landing' prompted investors to take some profits after recent gains. The U.S. dollar rose to an 11-month high against the yen and traded firm against other currencies ahead of data on regional manufacturing, February producer prices and the latest weekly jobless claims.
Japan's Nikkei average rose 0.7 percent to a seven-and-a-half-month high, as the yen's continued downtrend and improving economic outlook for the world's largest economy lifted export-related shares such as Canon, Toyota Motor and Honda Motor up 3-4 percent. Intraday, the benchmark briefly climbed to 10,158.74, its highest level since July 8. The broader Topix index of all First Section issues on the Tokyo Stock Exchange gained 0.8 percent. Sharp plunged 5.3 percent after the maker of liquid crystal displays said it would replace current President Mikio Katayama, effective April 1.
China's Shanghai Composite index fell 0.6 percent, with property developers pacing the declines for the second straight session after Premier Wen Jiabao said home prices are still "far from a reasonable level" fueling concerns the government will further tighten curbs on the property market. Hong Kong's Hang Seng index edged up 0.2 percent after spending most of the day in negative territory.
Australian shares ended modestly lower following two days of gains, with heavyweight miners among the biggest drags after Chinese Premier Wen Jiabao vowed to overcome "unbalanced, unsustainable and uncoordinated problems." Both the benchmark S&P/ASX 200 and the broader All Ordinaries index slipped around 0.2 percent each.
BHP Billiton fell 1.2 percent and Rio Tinto dropped 0.6 percent. Fortescue climbed 2.6 percent after the iron ore producer doubled its bond offer to $2 billion to fund its expansion plans. gold miner Newcrest lost 3.3 percent despite the precious metal regaining some strength in Asian trading Thursday after a 5 percent fall in the past two sessions.
In the financial sector, NAB rose 0.3 percent after the lender sold its entire $86 million exposure in debt-ridden Nine Entertainment. Commonwealth gained 0.4 percent and Westpac edged up 0.1 percent, but ANZ eased marginally. Blue chip Telstra added 0.3 percent after completing a benchmark €1 billion Eurobond issue.
Seoul shares edged lower from a seven-month high, as concerns about Chinese growth outlook weighed on the market and investors looked forward to first-quarter earnings for near-term market direction. The Kospi average finished a range-bond session down 0.1 percent, with crude oil refiners pacing the declines. SK Innovation, South Korea's largest refiner, fell 2.9 percent and S-Oil, the nation's third-largest, tumbled 3.7 percent.
Auto-parts maker Hyundai Mobis added a percent, extending its rally for a third straight session, and flat screen maker LG Display rallied 3.5 percent after the long-delayed free trade agreement between the United States and South Korea officially came into effect on Thursday.
New Zealand shares rose, with the benchmark NZX-50 adding a percent to its highest closing level since early June last year. Telecom, which has a dividend yield of about 12 percent, rallied 2.2 percent, whiteware manufacturer and exporter Fisher & Paykel Appliances jumped 5.2 percent amid signs of a strengthening U.S. economy and children's clothing company Pumpkin Patch soared 5.5 percent to close at its highest level since August last year.
Construction firm Fletcher Building rose 1.9 percent to a five-month high and online auction site Trade Me gained 0.6 percent to hit a record high. gold miner OceanaGold tumbled 4.8 percent as the price of gold plummeted to an eight-week low on speculation the Fed will refrain from announcing additional bond purchases. Resins and chemicals maker Nuplex fell 3.4 percent and rural services firm PGG Wrightson lost 2.5 percent.
Elsewhere, India's Sensex was last trading down 1.3 percent after the Reserve Bank of India left interest rates unchanged, as was widely expected by economists and analysts. Indonesia's Jakarta Composite index slipped 0.4 percent and key benchmark indexes in Singapore and Taiwan edged down marginally, while Malaysia's KLSE Composite gained 0.2 percent.
On Wall Street, the major averages bounced back and forth across the unchanged line before eventually ending Wednesday's session little changed, as traders digested the results of bank stress tests and seemed reluctant to make significant moves ahead of some key economic data later in the week, including reports on weekly jobless claims, industrial production, and producer and consumer price inflation.
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