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HONG KONG, March 23: Asian stocks closed mixed in hesitant Friday trade, with investors wrong footed as Wall Street reversed its view that the latest comments from the US Federal Reserve meant a US interest rate cut was on the cards, dealers said.
Markets rose sharply on Thursday as investors welcomed a change in emphasis in the Fed statement after its interest rate meeting which was taken to mean the central bank was now more worried about the economy slowing than inflation.
If that was the case, the Fed would be more likely to cut interest rates sooner rather than later but on a second glance, Wall Street turned more cautious, noting the bank's warning that inflation remained an issue which could go either way.
“The (Fed) statement did remove the bias towards tightening (interest rates) but there was no hint of any rate cut soon. It was modestly positive news at best,” said But Dick Green.
As the view changed, US stocks managed only very modest gains, making for an uncertain start to the Asian day, with investors deciding there was little to be gained from any aggressive trades ahead of the weekend.
Kuala Lumpur, a market which has been a laggard overall, was the best performer, rising 1.14pc to extend gains to a seventh straight day.
The Chinese markets, the cause of global turmoil only three weeks ago, edged up to another record finish in very heavy volumes.
TOKYO: Japanese share prices closed up 0.35pc, extending their winning streak to a fourth trading day as a weaker yen gave a lift to exporters, dealers said.
The Tokyo Stock Exchange's benchmark Nikkei-225 index of leading shares gained 61.41 points to 17,480.61.The TOPIX index of all issues on the Tokyo Stock Exchange's first section advanced 10.14 points or 0.59pc to 1,741.94.
Decliners beat gainers 852 to 719, with 161 stocks flat. Volume dropped to 1.90 billion shares from 2.17 billion on Thursday.
Although the indices posted gains, many investors took a breather after the market's recent rebound to a three-week high.
“Recent short-covering, which was prompted by a decline in selling by global funds to hedge against downside risks, has run out of steam,” said an equities official at a Japanese brokerage firm.
Dealers said some investors were also reluctant to build fresh positions ahead of the weekend and book-closing next week for the fiscal year-end.
HONG KONG: Hong Kong share prices closed flat, consolidating strong gains made this week as the market recovered lost ground on the back of solid results from the major companies, dealers said.
Buying momentum turned weak on Friday, however, with most of the top company results now out and trade was cautious as the market awaited key housing data in the US after Wall Street provided no lead overnight.
The Hang Seng Index added 2.39 points at 19,692.64, off a low of 19,634.11 and high of 19,729.49. For the week, the market was up 739.14 points or 3.9pc. Turnover was 43.01 billion dollars (5.5 billion US).
SEOUL: South Korean share prices closed little changed, with investors turning cautious ahead of the weekend and the corporate earnings season beginning next month, dealers said.
Samsung Electronics and other IT big stocks came under pressure after Motorola warned it might post a loss for the first quarter.
Dealers said gains on Thursday were helped by the view that the US Federal Reserve was readying the ground to cut interest rates later this year.
Overnight, however, the markets revisited the Fed's comments made on Wednesday and came to the different conclusion that the central bank remained concerned about inflation and so would more likely keep monetary policy on hold.
The KOSPI index slipped 1.15 points at 1,447.38, off a high of 1,454.34 and a low of 1,443.04. The market gained 19.50 points for the week. Volume was 271 million shares worth 2.8 trillion won (3.0 billion dollars). Falls outpaced rises 396 to 366, with 78 stocks unchanged.
Foreign investors were net buyers of shares worth 77.2 billion won while institutions and retail investors were net sellers of 38.9 billion won and 80 billion won respectively.
TAIPEI: Taiwan share prices closed 0.46pc higher, extending Thursday's gains as foreign investors maintained their buying interest, dealers said.
They said the market, however, appeared to lack enough support to get much nearer the psychologically significant barrier of 8,000 points, with investors awaiting more convincing leads to justify aggressive buying following a mixed performance on Wall Street overnight.
The weighted index rose 35.65 points at 7,859.32, after trading between 7,806.89 and 7,879.09, on turnover of 109.02 billion dollars ($3.30 billion).
Risers led decliners 605 to 460, with 243 stocks unchanged.
SHANGHAI: Chinese share prices closed 0.10pc higher, edging up for another record finish as early losses were recovered on the back of sustained capital inflows, dealers said.
They said there was some early profit-taking but underlying buy interest remained solid, with investors having easily digested a hike in interest rates last weekend and showing no fear the authorities will clamp down again.
Volumes were once again very heavy at more than 20 billion dollars, reflecting inflows of new money into a market that only three weeks ago plunged nearly nine per cent and set global equities on a roller coaster ride they have only just recovered from.
The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, added 3.06 points to a record 3,074.29 on turnover of 104.61 billion yuan ($13.50 billion).
The Shanghai A-share Index was up 3.25 points or 0.10pc at 3,230.27 on turnover of 104.07 billion yuan and the Shenzhen A-share Index rose 9.11 points or 1.08pc at a record 853.16, on turnover of 55.91 billion yuan.
SYDNEY: Australian shares closed flat in cautious trade as some investors took profits following Thursday's sharp rally, dealers said.
They said the market enjoyed a morning rally which brought the benchmark index to within 100 points of a record level but closed the week quietly on profit-taking following Thursday's gains.
The benchmark S&P/ASX 200 slipped 3.4 points at 5,952.3 and the broader All Ordinaries shed 2.3 points to 5,933.1.
Turnover was 1.69 billion shares worth 5.29 dollars ($4.26 billion), with rises outnumbering falls 630 to 533 and 375 stocks unchanged.
SINGAPORE: Singapore share prices closed 0.43pc lower on a lack of fresh leads and as investors consolidated a series of strong gains made this week, dealers said.
The Straits Times Index was down 13.69 points at 3,205.82. Volume was 1.33 billion shares worth 1.28 billion dollars ($847 billion). Losers outpaced gainers 348 to 321, with 738 stocks unchanged.
KUALA LUMPUR: Malaysian share prices closed 1.14pc higher, extending gains to a seventh straight day after the government announced major incentives for the property sector, dealers said.
Prime Minister Abdullah Ahmad Badawi on Thursday announced at a major investment conference that the property capital gains tax will be abolished from April 1.
He also proposed tax cuts and other measures to attract foreign investors to develop an ambitious project in southern Johor state.
The Kuala Lumpur Composite Index closed up 13.93 points at 1,235.65. Volume was 2.14 billion shares worth 2.63 billion ringgit ($760.6 million).
Gainers led losers 467 to 426, with 255 stocks unchanged.
The gains were mainly due to the “spill-over effect of announcements at the Invest Malaysia conference,” said Cheah King Yoong, head of research at SJ Securities.
At the conference, Malaysia's leaders and chiefs of major corporations briefed fund managers and investment analysts.
JAKARTA: Indonesian share prices closed 0.17pc lower as investors took profits on recent gains, dealers said.
The Jakarta Stock Exchange composite index slipped 3.105 points at 1,805.961 on volume of 1.98 billion shares worth 2.4 trillion rupiah ($263.59 million). Decliners led advancers 77 to 63, with 68 stocks unchanged.
BANGKOK: Thai share prices closed 0.44pc higher, led by gains in energy stocks as oil prices climbed while the banks also attracted attention in an otherwise subdued market, dealers said.
The Stock Exchange of Thailand (SET) composite index gained 2.95 points to 677.79 while the blue-chip SET 50 index rose 2.37 points to 474.79.
Gainers led losers 167 to 149, with 126 stocks unchanged on turnover of 1.7 billion shares worth 9.5bn baht ($270 million).
MANILA: Philippine share prices closed 0.26pc lower as a lack of leads resulted in mixed trade as some investors opted to take some profits ahead of the weekend, dealers said.
Buying in select blue chips like Ayala Corp and SM Investments helped limit the downturn, they added.
The composite index fell 8.27 points to 3,170.05 after trading between 3,141.55 and 3,183.30.
The broader all-share index shed 1.44 points to 2,038.09. Despite key indices finishing lower, gainers beat losers 62 to 51, with 51 stocks unchanged.
Volume was 5.2 billion shares worth 3.5 billion pesos ($73 million).
MUMBAI: Indian share prices closed down 0.17pc, snapping four straight days of gains as investors took profits after a sharp rally led by global trends, dealers said.
They said the markets may weaken next week on expectations of a local rate hike, with inflation figures on Friday showing prices still above the central bank's comfort level.
The 30-share Mumbai stock exchange Sensex index fell 22.1 points at 13,285.93, having risen 855 points or 7.06pc on Thursday.
“The markets came off its early gains with investors booking profit after a sharp rise. There are concerns of a rate hike next month,” said Advait Date, dealer with brokerage BHH Securities.—AFP
