Asian stocks closed mixed on Friday, although gains were less than convincing among the benchmarks that rose with investors showing signs of increasing unease given the extent of the recent rally.
Gains on Wall Street and falls in oil prices did little to help Tokyo, down 1.51 percent on heavy profit taking, while Bangkok plummeted 3.09 percent amid the ongoing aftermath of the New Year's Eve bomb attacks.
Taipei followed Japan's lead and slumped 1.25 percent, Seoul was down 0.83 percent and Sydney by 0.23 percent, while investors cashed-up on the heady gains made recently in Shanghai with its benchmark slumping 2.74 percent.
Hong Kong was the best on the day with a 0.92 percent surge, but trade was volatile after early sharp falls. Jakarta rose a modest 0.46 percent, but gains in Wellington, Singapore and Kuala Lumpur were only slight.
TAIPEI
Share prices closed 1.25 percent lower as technical gains triggered by Wall Street's mild overnight bounce wobbled amid creditor banks' anxiety over restructuring plans sought by two Taiwanese companies.
Dealers said concern over whether North Korea would conduct a second nuclear test also pressured the market.
China Rebar Co (中國力霸) and Chia Hsin Food and Synthetic Fiber Co (嘉新食品化纖), two units of conglomerate Rebar Asia Pacific Group (力霸亞太企業集團), are seeking court permission for reorganization, unnerving their creditor banks.
The weighted index closed down 98.94 points at 7,835.57 on turnover of NT$137.64 billion (US$4.22 billion).
China Rebar and Chia Hsin Food and Syntheic Fiber have filed applications with the Taipei District Court seeking to undertake the reorganization, along with a request for urgent asset protection.
The court has granted their request for asset protection, giving the two companies a 90-day period during which their assets may not be seized by creditors.
TOKYO
Share prices closed down 1.51 percent, coming off eight-month highs as investors locked in profits and reacted cautiously to a stronger yen.
Dealers said a sharp fall in world oil prices weighed on energy stocks. Many investors also appeared reluctant to buy into the market ahead of key US jobs data and a three-day holiday weekend in Tokyo.
The NIKKEI-225 index of leading shares closed down 262.08 points at 17,091.59. Volume rose to 2.15 billion shares from 1.06 billion during Thursday's half-day session.
Market speculation about a possible rate hike in Japan this month pushed the yen higher against the dollar, in turn dampening buying interest in export-oriented shares, dealers said.
A Japanese daily, the Yomiuri Shimbun, reported that the Bank of Japan (BOJ) might raise its benchmark interest rate from 0.25 percent as early as on Jan. 18, although most market players expect no change just yet.
"I don't think there is any need for the BOJ to raise interest rates this month considering the current economic environment," said Hideo Mizutani, chief strategist at Sieg Securities.
HONG KONG
Share prices closed 0.93 percent higher in volatile trade as a strong rebound in property stocks helped the market reverse early losses driven by extended profit-taking.
Dealers said the property sector attracted renewed interest on hopes of strong housing sales this year due to launch of new projects and expectations of stable interest rates.
The Hang Seng Index closed up 185.70 points at 20,211.28.
RSS