Asian markets mixed; Japan boosted by Wall Street gains, optimism over US economy, AS

Thu, May 8 06:20 PM

BANGKOK, Thailand (AP) _ Asian markets were mixed Wednesday, with Japan and a few other market boosted by gains on Wall Street and growing optimism over prospects for the U.S.

economy. Meanwhile, shares in China and Hong Kong fell on profit-taking and continued worries about this week's record high oil prices.

In its first day of trade this week, Japan's benchmark Nikkei 225 index rose 0.4 percent to 14,102.

5. Japanese financial markets were closed Monday and Tuesday due to public holidays.

Hong Kong's Hang Seng index fell 2.5 percent to 25,610.

2. The Shanghai Composite Index fell 4.

1 percent to 3,579.2.

Investors in Japan chased gains in automaker and financial stocks amid more positive signs for the outlook of the world's largest economy. But traders said market players remained cautious as oil prices hit a record near US$123 a barrel this week on worries over supply disruptions.

"The bottom line is that the market is still in a cautious mood after a quick rebound and the 14,000 point level is a place to lock in profits for many," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. Despite the cautious mood, the Nikkei rose on the overnight gains on Wall Street and Friday's better-than-expected U.

S. job-loss numbers.

The data was seen as a sign the U.S.

economy could muddle along, neither growing or declining dramatically. On Tuesday, the Dow Jones industrial average rose 0.

40 percent to 13,020.83.

Among gainers in Japan, financial giant Mizuho Financial Group rose 2.8 percent and Mitsubishi UFJ Financial Group added 2.

6 percent. Japan's top brokerage firm Nomura Holdings rose 2.

5 percent. Shares in Toyota Motor Corp.

, the world's second-biggest automaker by annual vehicle sales, increased 2.8 percent.

In Hong Kong, profit-taking weighed on blue chips and ratings downgrades and oil prices pulled down PetroChina. Airlines listed in Hong Kong and Shanghai also continued their downtrend on the anticipation that higher jet fuel costs will hurt their earnings.

Only three of the Hang Seng's 43 component stocks rose Wednesday. Bank HSBC dropped 1.

1 percent, after rising 4.3 percent over the past three weeks.

China Mobile fell 2.8 percent, after rising 8 percent during the same period.

PetroChina plunged 5.4 percent after both JPMorgan and Goldman Sachs downgraded the stock on Tuesday.

JPMorgan analyst Brynjar Bustnes said government refunds of import taxes on crude oil and fuel are "not material enough" to offset PetroChina's refining losses. In Hong Kong, Cathay Pacific fell 3.

7 percent, Air China plunged 7.6 percent and China Eastern plummeted 8.

4 percent. In Shanghai, banks also fell on the revived worries that a flood of shares due to be released from lockup periods will overwhelm investor demand.

Those concerned were sharpened by rumors that Ping An Insurance, the country's No. 2 insurer, was planning to go ahead with major fund raising plans, analysts said.

"It's a big day for rumors," said Zhai Peng, a strategist at Guotai & Junan Securities in Shanghai. Shanghai Pudong Development Bank fell 7.

4 percent and leading lender Industrial and Commercial Bank of China declined 3.2 percent.

Ping An Insurance fell 8.1 percent.

Helped by various market-boosting policies, including reduced taxes on share dealings, the Shanghai benchmark index has gained 20 percent after trading briefly below the symbolically important 3,000 level late last month. "After some days of gains, it's natural for prices to fall a bit," Zhai said.

Elsewhere in Asia, major benchmarks fell in Australia, India, New Zealand, Singapore and South Korea. Other benchmarks rose in Indonesia, Malaysia, the Philippines, Taiwan and Thailand.

In Tokyo currencies, the dollar was quoted at 105.35 at 7:50 p.

m. (1050 GMT), up from 104.

79 late Tuesday in New York. The euro stood at US$1.

5434, little changed from US$1.5536.

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