Asian stocks closed mixed to firmer on Friday, finding support from lower oil prices which gave the airlines a sharp boost while trade overall was lackluster, in line with Wall Street, dealers said.
They said investors were largely content to sit out the day ahead of key US consumer inflation data and the lead it could give on what the US Federal Reserve may decide on interest rates at its meeting next week.
For the moment, lower oil and commodity prices are taken positively as working to reduce inflation and interest rates but the markets want reassurance, especially after senior Fed officials recently indicated monetary policy could still be tightened.
Dealers said that September can often be a difficult month for stocks and with the cycle clearly moving into a weaker phase as the global economy slows, sentiment has been volatile, changing rapidly from one bit of data to another.
They said it is not necessarily clear which outcome would be worse for stocks -- a continued slowdown in the US economy or higher inflation and interests -- and this likely explains the current choppy trade.
Taipei
Taiwan share prices closed 1.25 percent higher, bouncing back after early losses on continued political concerns as supporters and opponents of the president press ahead with rallies, dealers said.
Dealers said investors are concerned about possible escalation of the protests and confrontations even though up to now the demonstrations have been peaceful.
The weighted index was up 82.22 points at the day's high of 6,681.09, recouping all of Thursday's losses, on turnover of NT$56.65 billion dollars (US$1.72 billion). Risers led decliners 823 to 243, with 166 stocks unchanged. Financial stocks outperformed the broader market because there were seen as undervalued, dealers said.
President Securities (統一證券)manager Johnny Lee said that bargain-hunting emerged following recent weakness, with interest from foreign investors Thursday encouraging others to follow suit this session.
He said the thin trade, however, indicated that many investors remained on the sidelines, given lingering political worries.
"Recent political developments raised uncertainties and kept investors at bay," he said.
Tokyo
Japanese share prices closed 0.47 percent lower after the government revised down a leading economic index and as investors locked in recent profits ahead of a long weekend here, dealers said.
They said investors were reluctant to take aggressive positions with key US consumer price data due out later in the day which will be closely examined for a lead on interest rates in the world's largest economy.
The Tokyo Stock Exchange's benchmark NIKKEI-225 index fell 75.46 points to 15,866.93. The broader TOPIX index of all first-section stocks slipped 4.70 points or 0.29 percent to 1,593.43.
Losers led gains 1,038 to 543, with 120 stocks flat.
Volume was 1.42 billion shares, down from 1.56 billion Thursday.
An hour before the closing bell, the Cabinet Office said the index of leading economic indicators for July was revised down to 27.3 from the initial reading of 40. A reading above 50 indicates economic expansion over the subsequent three to six months, while a reading below 50 suggests contraction.
Figures earlier this week, showed weak revised industrial output and machinery orders for July.
Seoul
South Korean share prices closed 0.17 percent higher as strong institutional and retail investor support offset foreign investor profit-taking ahead of the weekend, dealers said.
They said the market was in negative territory for much of the session, with investors taking to the sidelines or locking in profits after a healthy rally of nearly 2.0 percent on Thursday, but then picked up near the close.
The KOSPI index added 2.35 points at 1,361.10, just off the high for the day of 1,361.20 and low of 1,351.26. Volume was 329 million shares worth 2.7 trillion won (U$2.8 billion). Rises outnumbered falls by 382 to 226.
Institutional and retail investors were net buyers of 101.2 billion won and 48.2 billion won while foreign investors were net sellers of 186.2 billion won.
"We expected a steep correction following [Thursday's] sharp run-ups, but that didn't happen. A consensus seemed to be reached among investors that earnings by major local firms would continue to be strong well into the fourth quarter," said NH Investment and Securities analyst So Jang-Ho.
Hong Kong
Hong Kong share prices closed 0.32 percent higher as aviation stocks attracted strong interest in late trade on the prospect of lower fuel prices, dealers said.
They said that select property stocks also attracted support on hopes that US consumer inflation data for last month, due out later Friday, will be benign and prompt the Federal Reserve to keep interest rates on hold at its meeting next Wednesday.
The Hang Seng Index added 54.20 points at 17,237.65, off a low of 17,143.24 and a high of 17,246.89. 01.21. For the week the index was up 91.89 points or 0.53 percent. Turnover was HK$22.22 billion (US$2.85 billion).
The property sector index closed up 134.81 points or 0.65 percent at 20,808.39, with Cheung Kong up 0.45 at HK$85.55 dollars as Sun Hung Kai Properties gained 0.40 at HK$84.75 after annual results.
Airline stocks were boosted by the prospect of lower jet fuel prices, with Cathay Pacific up 0.16 at HK$15.16.
Shanghai
Chinese share prices closed up sharply, adding 1.87 percent to a two-month high on expectations of further yuan strength, with airlines leading the advance as fuel prices fall, dealers said.
They said investors picked up on comments from a senior central bank official which were taken to show the government would allow more flexibility in the yuan exchange rate system.
The remarks were similar to many others made on the vexed issue of the yuan but may have attracted more attention given the upcoming Group of Seven meeting in Singapore yesterday when the rich industrial powers may call again on Beijing for faster change on the currency.
Mumbai
Indian share prices closed 0.31 percent higher and back above the key 12,000 points for the market to chalk up its best finish in four months, dealers said.
The benchmark Sensex had crossed the key 12,000 points level intraday Thursday as investors welcomed an IMF forecast of strong global growth this year.
The 30-share index the hit an intraday high of 12,041.71 on Friday before retracing to finish up 36.57 points at 12,009.59, the highest close since May 17.
Trade was choppy however, with investors preferring not to take aggressive positions ahead of the weekend, dealers said.
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