Asian markets mixed; Japan boosted by Wall Street gains

The Associated Press ,  Bangkok   |  Wed, 05/07/2008 8:10 PM  |  Headlines

Asian markets were mixed Wednesday, with Japan and a few other market boosted by gains on Wall Street and growing optimism over prospects for the U.S. economy.

Meanwhile, shares in China and Hong Kong fell on profit-taking and continued worries about this week's record high oil prices.

In its first day of trade this week, Japan's benchmark Nikkei 225 index rose 0.4 percent to 14,102.5. Japanese financial markets were closed Monday and Tuesday due to public holidays.

Hong Kong's Hang Seng index fell 2.5 percent to 25,610.2. The Shanghai Composite Index fell 4.1 percent to 3,579.2.

Investors in Japan chased gains in automaker and financial stocks amid more positive signs for the outlook of the world's largest economy. But traders said market players remained cautious as oil prices hit a record near US$123 a barrel this week on wrries over supply disruptions.

"The bottom line is that the market is still in a cautious mood after a quick rebound and the 14,000 point level is a place to lock in profits for many," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.

Despite the cautious mood, the Nikkeirose on the overnight gains on Wall Street and Friday's better-than-expected U.S. job-loss numbers. The data was seen as a sign the U.S. economy could muddle along, neither growing or declining dramatically.

On Tuesday, the Dow Jones industrial average rose 0.40 percent to 13,020.83.

Among gainers in apan, financial giant Mizuho Financial Group rose 2.8 percent and Mitsubishi UFJ Financial Group added 2.6 percent. Japan's top brokerage firm Nomura Holdings rose 2.5
percent.

Shares in Toyota Motor Corp., the world's second-biggest automaker by annual vehicle sales, increased 2.8 percent.

In Hong Kog, profit-taking weighed on blue chips and ratings downgrades and oil prices pulled down PetroChina. Airlines listed in Hong Kong and Shanghai also continued their downtrend on the anticipation that higher jet fuel costs will hurt their earnings.

Only three of the Hang Seng's 43 component stocks rose Wednesday.

Bank HSBC dropped 1.1 percent, after rising 4.3 percent over the past three weeks. China Mobile fell 2.8 percent, after rising 8 percent during the same period.

PetroChina plunged 5.4 percent after both JPMorgan and Goldman Sachs downgraded the stock on Tuesday. (***)

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