Asian markets mixed in midday trade; Nikkei threatens to stretch losing streak to 12 days

The Jakarta Post   |  Fri, 07/04/2008 3:30 PM  |  Business

Asian markets were mixed Friday as investors digested uneven readings on the U.S. economy and more record oil prices. Japan headed for its 12th straight day of losses.

Indonesia's main index rebounded after selling off nearly 4 percent the prior session. Hong Kong and Australia equities also were higher.

With stocks hit hard recently, some investors were returning to the market. Others who bet on falling prices were starting to take profits, further supporting prices.

"Investors are still bearish, we've been down a lot in the past few weeks. But even those bears are a bit hesitant on selling at this level," said Y.K. Chan, fund manager at Phillip Capital
Management in Hong Kong.

Elsewhere, markets in mainland China, South Korea and Malaysia lost ground.

Investors got little guidance from the U.S. overnight after a mixed assessment on the world's largest economy. While the country's service sectors shrunk, a tame jobs report eased some worries about the labor market.

Oil continued trading at lofty levels, with a barrel of light, sweet crude for August delivery at US$145.30 midday in Asia. The contract hit a record trading high at US$145.85 a barrel Thursday on the New York Mercantile Exchange.

In Tokyo, and the benchmark Nikkei 225 Stock Average was down 0.5 percent to 13,198.44 points, dragged down by technology and airline stocks. The index has posted 11 straight days of losses, its longest down streak since 1954.

Hong Kong's blue-chip Hang Seng Index climbed around 1 percent to 21,450. 72 points.

Financials help lift the market amid reports that Industrial and Commercial Bank of China, the country's biggest lender, expected net profit to rise 50 percent in the first half. ICBC climbed 2.4 percent. Standard Chartered was up 3.2 percent.

Telecoms, seen by some analysts as a safer play during periods of high inflation, rose. China Netcom was up 3 percent and its suitor, China Unicom, gained 1.8 percent.

In Indonesia, the Jakarta composite index was up 1 percent, led by coal companies and banks. (***) 

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