Asian markets mixed; telecoms lead HK higher; record oil prices hurt airlines, carmakers, AS

Thu, May 8 06:08 PM

BANGKOK, Thailand (AP) _ Asian markets were narrowly mixed Tuesday, with gains in telecommunications and property companies pulling Hong Kong to a positive finish, while record oil prices drove investors to sell auto companies and airlines. The blue-chip Hang Seng Index rose 0.

3 percent to 26,262.13.

The Shanghai Composite Index fell 0.7 percent to 3,733.

5. Asia was still without the lead of its largest bourse in Tokyo due to a public holiday.

Financial markets reopen in Japan on Wednesday. Analysts in Hong Kong said they expect trading in the territory to be choppy in the near term as a potential recession in the U.

S. remains a major concern.

"I believe the (Hang Seng) will decline in the near term given it has jumped sharply in the past month and because of concerns of a U.S.

recession," said Louis Wong, research director at Phillip Securities. The benchmark index has gained 7 percent in the past month.

Local property companies rose after Merrill Lynch said the sector is lagging behind the broad market. "We expect developer stocks will catch up strongly in the coming three to six months," said Merrill Lynch analyst Keith Yeung.

Wharf Holdings rose 2.1 percent.

Sun Hung Kai Properties advanced 0.8 percent.

Swire Pacific was up 1.2 percent.

Telecommunications companies also jumped on hopes that China will soon restructure the telecom sector, traders said. China Telecom was the biggest gainer in the sector, rising 3 percent.

China Netcom advanced 2.2 percent.

China Mobile rose 1.4 percent.

Bucking the upward trend, airlines fell as light, sweet crude oil for June delivery rose to a record near US$121 in electronic trading on the New York Mercantile Exchange. Blue-chip carrier Cathay Pacific fell 1.

3 percent, Air China slid 3.2 percent, China Eastern was down 1.

6 percent and China Southern fell 3.2 percent.

Shares for the last three airlines also declined on the Shanghai exchange, and the record oil prices also hit automakers listed in China. "High flying oil prices will lead to rising costs for air carriers and weigh on demand for automobiles," said Li Bin, an analyst at Capital Securities.

In Shanghai, China Eastern slid 4.2 percent, China Southern lost 5.

3 percent and Air China shed 5.2 percent.

Automaker SAIC Motor fell 3.7 percent, FAW Car lost 4.

7 percent and Chongqing Changan Automobile declined 2.9 percent.

Elsewhere in Asia, benchmark indices scratched out gains in Malaysia, Singapore, South Korea, Thailand and Taiwan. Stock benchmarks fell in Australia, India, Indonesia, New Zealand and the Philippines.

In currency trading, the U.S.

dollar was holding just under 105 yen; the euro was at US$1.5503.

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