ASIA MARKETS: Asian Markets Decline On U.S. Growth Concerns

By Chris Oliver

Asian stocks fell across the board Friday on renewed concerns for the health of the U.S. economy.

The 225-issue Nikkei Averagefell 1% to 17,553.72, while the Topix index shed 0.8% to 1,723.09. Exporter stocks felt the pressure.

"Chain store retails sales figures were lower than expected, sparking increased concern over U.S. growth. That is why exporters were sold," said Hirokazu Yuihama, head of regional strategy for Daiwa Institute of Research in Hong Kong.

"The Japanese economy is trending upwards and growth momentum is not that weak," Yuihama said. "If the Bank of Japan's policy does not change in the near term, I think that will support the Japanese market, but I don't expect a sharp increase from the current level."

In Seoul, the Kospi index rebounded from early losses to rise 0.2% to a fresh closing record 1,603.56. Shares of Hyundai Steel surged 14% after Morgan Stanley said a tie-up with Arcelor Mittal had strategic merit, though no such deal has actually been proposed.

Australia's S&P/ASX 200 ended 0.9% lower at 6,297.4 and New Zealand's NZX-50 shed 0.6% to 4,226.39.

Singapore's Strait Times Index fell 0.6% and Malaysia's KLSE Composite was down 0.3%. Taiwan's leading index, the Weighted Price Index, fell 0.8%.

Among oil stocks, Nippon Oilrose 0.2% after crude-oil prices firmed in U.S. trading.

In currencies, the U.S. dollar was quoted at 119.76 yen, compared to 119.85 yen late in New York Thursday.

In Tokyo trading, shares of Canon (CAJ) eased 1.9% while Sony Corp. (SNE) retreated 1.7%.

Investors revisit mining M&A

Australian mining shares ended mixed amid declines in natural resource prices and growing skepticism of an imminent takeover bid by BHP Billiton for smaller rival Rio Tinto. Shares of BHP Billiton (BHP) fell 2.5% while Rio Tinto (RTP) nudged 0.1% higher.

Automotive shares bucked the downtrend, with Toyota Motor Corp. (TM) climbing 1.1% while Nissan Motor (NSANY) was up 0.8 %.

China's Shanghai Composite Index fell 0.7% to 4,021.68, retreating from a record close in the previous session.

Hong Kong's Hang Seng Index ended 1.2% lower at 20,468.21. The Hang Seng China Enterprises Index, or Hong Kong-listed shares in mainland companies, was down 1.7% 10,392.01.

Traders said declines in China-shares listed on mainland stock exchanges were to be expected in view of the lightening pace of recent gains and broker this week notes warning of an overheating.

Among shares in Hong Kong, mobile operator China Mobile (CHL) fell 1.3%. Export and supply chain distribution company Li & Fung fell 0.9% on investor concern weaker U.S. growth will dampen export demand.

Hang Seng Index compiler HIS Services Ltd. announced after the close of trading that Chinese insurer Ping An Insurance Groupwill be elevated to blue- chip status from June 4.

Konica Minolta Holdingsfell 7.6% on profit taking following recent share price gains and a brokerage downgrade from Mizuho Securities. On Thursday, Konica Minolta reported a group net profit of 72.54 billion yen ($604.69 million) for the fiscal year ending in March, reversing a 54.3 billion yen loss in the previous year.

Oil prices rose 32 cents to $62.15 a barrel in electronic trading. On the New York Mercantile Exchange Thursday, June crude climbed 26 cents to finish at $ 61.81 a barrel.

U.S. stocks ended sharply lower Thursday as investors assessed weaker April retail sales data and news that the trade deficit widened sharply in March, after improving over the past six months.

(END) Dow Jones Newswires
05-12-070000ET
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