Asian markets closed mostly lower on Friday as investors took profits on Thursday's sharp gains after a volatile week marked by high oil prices and escalating violence in the Middle East, dealers said.
They said Thursday's relief rally, made possible by a softer line from US Federal Reserve chairman Ben Bernanke on inflation and interest rates, allowed stocks some respite but investors had remained cautious.
Bernanke said a slowing US economy should limit inflation pressures but at the same time, data showing US core consumer prices rose more-than-expected, leaving some feeling that the markets may have got a bit carried away.
That would especially be the case if another twist to the Middle East crisis were to push oil even higher at a time when pressure on prices seems finally to be feeding through into higher costs generally.
Dealers said against this backdrop, investors clearly preferred to take some profits going into the weekend rather than risk any positions over the weekend which might easily come unstuck given the current geopolitical uncertainties.
In Taipei share prices closed 0.37 percent lower as investors took quick profits on Thursday's sharp gains after Wall Street slipped back overnight, dealers said.
The bellwether technology sector, which led the market's upturn on Thursday, was the main target but trade was thin and restrained against a backdrop of Middle East uncertainty and high oil prices, they said.
The weighted index fell 23.73 points at 6,420.01, well off the low of 6,373.59 and a high of 6,423.52, on turnover of NT$65.19 billion (US$1.99 billion). Decliners led risers 590 to 386, with 118 stocks unchanged.
"The techs lost steam after NASDAQ reversed its Wednesday rally," Fubon Securities Investment Services (
As things stand, the market may need to consolidate further before the index can breach resistance at around 6,500 points now that its near-term bottom has been firmly established at below 6,300 points, he said.
Tokyo
Japanese share prices fell for the first day in three as a pullback on Wall Street overnight prompted investors to lock in some of the sharp gains posted on Thursday, dealers said.
They said investors were reluctant to take fresh positions ahead of the start of the domestic corporate results season next week.
The Tokyo Stock Exchange's benchmark NIKKEI-225 index declined 125.58 points or 0.84 percent at 14,821.26, a day after jumping by over three percent. Over the week the index was down 0.16 percent. The broader TOPIX index of all first-section stocks slipped 13.06 points or 0.85 percent to 1,515.53. It was down 0.41 percent for the week.
"The market showed a familiar pattern, falling after a surge [on Thursday] and following a retreat in the US stock market," said Hideyuki Suzuki, a strategist at SBI Securities.
"Investors were also taking to the sidelines before earnings reports come out," he said. "I believe that Japanese companies, particularly electronics makers, will come up with strong results."
South Korean share prices closed 0.15 percent lower, slipping back after Thursday's sharp gains following a weaker Wall Street performance overnight, dealers said.
Late support by institutional investors helped offset profit-taking by foreign and retail investors, allowing the market to finish off its lows.
The KOSPI index closed down 1.97 points at 1,271.33, off a low of 1,259.32.
Dealers said the market moved sideways for much of the session, with investors hesitant to build positions ahead of the weekend against a backdrop of high oil prices driven by Israel's continued attacks on Lebanon.
Hong Kong share prices closed flat as investors traded cautiously after a retreat on Wall Street overnight and some disappointing earnings from US companies, dealers said.
They said the market is waiting for additional data from the US, including the second-quarter growth figures to be released next Friday, for more clues on the prospects for interest rates.
The Hang Seng Index closed down 8.44 points at 16,464.18, off a low of 16,376.03 and a high of 16,483.23.
Shanghai
Chinese share prices closed 0.61 percent higher on continued bargain-hunting, with banks and property developers finding favor again, dealers said.
They said volumes were modest again and this suggested a continued note of caution after very heavy losses on Wednesday, when the market was hit by another opportunistic bout of profit-taking.
The Shanghai A-share Index added 10.60 points to 1,750.69, and the Shenzhen A-share Index was up 3.05 points or 0.69 percent at 446.73.
The benchmark Shanghai Composite Index, which covers both A and B-shares, rose 10.21 points or 0.62 percent at 1,665.33.
Australian share prices closed 0.72 percent lower as falling commodity prices and profit-taking hit the resources sector and the market followed a negative lead from Wall Street, dealers said.
The benchmark SP/ASX 200 shed 35.9 points to 4,960.6, while the broader All Ordinaries lost 33.1 points to 4,934.3.
Singapore share prices closed 0.51 percent lower following Wall Street's falls overnight and disappointing second-quarter results from index heavyweight Chartered Semiconductor, dealers said.
The Straits Times Index was down 12.17 points at 2,371.37 on volume of 738.37 million shares.
Malaysian share prices closed 0.88 percent higher on follow-through interest in blue-chips, with sentiment boosted by several strong corporate quarterly results, dealers said.
The Kuala Lumpur Composite Index gained 8.10 points to 924.72.
Thai share prices closed 2.50 percent higher as political uncertainties eased after the king endorsed new elections to be held on October 15, dealers said.
The Stock Exchange of Thailand (SET) composite index jumped 16.75 points to 685.71 points while the blue-chip SET 50 index rose 11.50 to 477.20.
Indian share prices fell 2.58 percent on weak Asian markets and concerns about a possible domestic interest rate hike early next week, dealers said.
The benchmark 30-share SENSEX index was down 267.03 points to 10,085.91
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