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Asian stocks close flat in slow trade

Asian stocks closed flat to lower on Friday after disappointing US first-quarter growth figures muddied the outlook even further for investors hoping that the data would have provided a clear lead, dealers said.

The US economy grew 3.1 percent in the first quarter, the slowest pace in two years, even as inflation picked up, increasing concerns that the US Federal Reserve will continue hiking interest rates even if the economy slows, the worst possible combination for stocks.

Dealers said that after a weak start, most markets managed to trim their losses in quiet trade, with Tokyo's closure for a public holiday adding to the subdued tone.

There was some relief in lower oil prices but as long as they remain above US$50 a barrel there is little room for comfort on their impact on inflation, which continues to show up in the system.

The TAIEX closed down 0.41 percent, but late bargain-hunting took the market off early lows sparked by sharp losses on Wall Street after weaker-than-expected US growth data, dealers said.

Export-oriented tech firms led the falls as the slowdown in the US triggered fresh concerns over prospects for the US economy, the ultimate market for the region's goods.

The TAIEX closed down 24.20 points at 5,818.07, off a low of 5,780.97, on turnover of NT$48.86 billion (US$1.55 billion).

Decliners led gainers 593 to 248, with 172 stocks unchanged.

"Local technology products depend heavily on exports and the US data raised concerns over demand from that market," said William Wang, senior vice president at International Investment Trust.

Thin turnover also showed that investors chose to stay on the sidelines before a US decision on interest rates due next week.

South Korean share prices closed 0.7 percent lower as weaker-than-expected US first quarter growth and fresh tensions over North Korea's nuclear weapons drive undercutting the market, dealers said.

The KOSPI index closed down 6.43 points at 911.30.

Hong Kong share prices closed flat, coming off early lows after heavy Wall Street losses following weaker-than-expected first quarter US growth data, dealers said.

The Hang Seng Index closed down 0.45 points at 13,908.97. The Hang Seng China Enterprises Index lost 40.89 points or 0.87 percent at 4,657.70.

Chinese share prices closed 0.84 percent lower, quickly falling back after gains on Thursday as this time telecom stocks were hit by earnings concerns and real estate companies continued to slide on worries over possible further government controls on the sector, dealers said.

The Shanghai A-share Index shed 10.34 points to 1,216.20, while the Shenzhen A-share Index was down 4.41 points or 1.49 percent at 291.76. The benchmark Shanghai Composite Index, which covers both A- and B-shares, lost 9.97 points, or 0.85 percent, at 1,159.15.

"Sentiment is still weak ... there was some bargain hunting but blue chips that weigh heavily on the market attracted little attention," said Wang Mingzhi, a GF Securities analyst.

"The liquidity shortage is a main concern after the market regulator recently approved back-to-back fund-raising applications," Wang added.

Australian share prices closed 0.7 percent lower as the market responded to weaker-than-expected US economic growth figures that sent Wall Street tumbling, dealers said.

The benchmark SP/ASX 200 shed 28.4 points to 3,983.2, while the broader All Ordinaries index finished down 32.2 points at 3,943.1.

Singapore shares closed 0.70 percent lower in lackluster trade ahead of a long weekend and amid concerns over disappointing corporate results and weak US first quarter growth data, dealers said.

The Straits Times Index fell 14.99 points to close at the day's low of 2,125.25.

Malaysian share prices closed 0.58 percent higher, with early losses in line with weaker regional markets reversed by last-minute buying interest, dealers said.

The Kuala Lumpur Composite Index rose 5.11 points at 878.96.

Thai share prices closed flat in lackluster trade with few factors to inspire investors ahead of a three-day weekend, dealers said.

The Stock Exchange of Thailand (SET) composite index was off 0.36 points at 658.88 and the blue-chip SET-50 index was unchanged at 45.82.

Indonesian share prices closed 0.84 percent lower on continued concerns over the prospect for higher interest rates and exports following weaker-than-expected US first-quarter growth figures, dealers said.

The Jakarta Stock Exchange composite index closed down 8.744 points at 1,029.613, but was off an intra-day low of 1,022.018.

Philippine shares closed 0.9 percent higher, finishing a mixed week on a positive note despite Wall Street's downturn as bargain-hunting provided support, dealers said.
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