Asian stocks closed lower on Friday after losses on Wall Street sparked by the crisis over Iran's nuclear program hit sentiment and raised the prospect of a sharp spike in oil prices, dealers said.
They said the losses were not significant but clearly reflected a sense of caution that if the UN were to impose sanctions on Iran, oil prices could rise sharply, contrary to current expectations they will ease as the Northern Hemisphere winter ends.
Many believe the markets, many running at record or multi-year highs, are 'priced for perfection' and so could be vulnerable to any bad news -- such as a confrontation with Iran which threatened its oil output.
Tokyo was flat after disappointing private sector machinery order figures while Seoul added 0.98 percent for another record finish as investors focused on Samsung Electronics' positive outlook rather than its weaker-than-expected fourth-quarter results.
Taiwanese share prices closed 0.64 percent lower after Wall Street's losses, with sentiment further undermined by concerns about political bickering after the legislature cut the government's proposed budget for this year, dealers said.
Heavyweight tech stocks, including semiconductor and flat panel display makers, led the falls after losses overnight in New York.
The TAIEX fell 43.26 points at 6,682.35, off a high of 6,729.58 and a low of 6,669.64, on turnover of NT$97.24 billion (US$3.04 billion).
Declines led gains 801 to 297, with 144 stocks unchanged.
Fubon Securities Investment Services (
"A note of caution has gradually crept in, as shown in the recent contraction in turnover, even though some are still betting on a further advance driven by ample liquidity in the run-up to the Lunar New Year" at the end of the month, Tseng said.
He said the market stands a good chance of regaining momentum but the upside could be limited given gains of more than 1,000 points over the past couple of months.
Japanese share prices closed little changed as the market took a breather following losses on Wall Street and weaker-than-expected domestic machinery orders data, dealers said.
The Tokyo Stock Exchange's benchmark NIKKEI-225 index gained 9.76 points or 0.06 percent to 16,454.95, the highest close since Sept. 20, 2000.
The broader TOPIX index of all first-section shares shed 2.65 points or 0.16 percent to 1,681.69.
Decliners outnumbered gainers 858 to 714, with 97 stocks unchanged.
Seoul
South Korean share prices closed 0.98 percent higher for a fresh record, reversing early losses as investors quickly digested Samsung Electronics' downbeat results and cheered its positive outlook, dealers said.
The market opened under pressure from Wall Street's overnight losses and concerns over the outlook for oil prices as tensions over Iran's nuclear program increase but stocks later rebounded on institutional investor support.
The KOSPI index closed up 13.7 points at the day's highest level of 1,416.28, off a low of 1,388.15.
Samsung Electronics closed up 10,000 won (US$10.19) at 694,000 won as Hynix rose 400 won to 38,100 won.
Hong Kong share prices closed 0.44 percent higher, extending gains as investors bought into blue chips and China stocks after some caution in the morning session, dealers said.
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