Asian markets fall on US wariness, Japan economic data

HONG KONG: Asian markets mostly fell on Friday due to wariness about US and Japanese economic woes, with a soaring debut for insurer AIA and strong corporate results providing relief. Tokyo’s Nikkei index closed down 1.75 percent, or 163,58 points, at 9,202,45, Sydney ended 0.50 percent, or 23.3 points, lower at 4,661.6 and Seoul fell 1.31 percent, or 24.92 points, to 1,882.95. Hong Kong closed down 0.49 percent, or 114.54 points, at 23,096.32, while Shanghai’s Composite index was down 0.46 percent, or 13.74 points, at 2,978.84. Wall Street offered only a weak lead Thursday, with the Dow index falling 0.11 percent, the broader S&P 500 gaining 0.11 percent and the tech-rich Nasdaq up 0.16 percent. Markets were generally cautious ahead of next week’s US Federal Reserve meeting, expected to unveil some form of economic stimulus, and ahead of US third-quarter growth data due out later Friday. “Speculation over the magnitude of the second round of quantitative easing to be implemented by the US Federal Reserve… continued to prompt cautious trading in the Asian markets,” Hong Kong-based securities firm Taifook was quoted by Dow Jones Newswires as saying. Tokyo was also hit by data showing industrial output slid a worse than expected 1.9 percent in September from the previous month and consumer prices fell 1.1 percent from a year earlier, their 19th straight month of decline. However strong earnings reports and forecasts helped limit losses, as Sony, Honda and Mitsubishi Electric both raised their full-year forecasts. A climbing yen however continued to exert pressure on Japan’s export sector. The dollar fetched 80.65 yen in Tokyo, down from 80.98 in New York late Thursday. The euro changed hands at 1.3883 dollars, compared with 1.3929 dollars in New York and the single European currency declined to 111.95 yen from 112.86 yen. “Yen-buying sentiment against the dollar is getting stronger,” said Daisuke Karakama, market economist at Mizuho Corporate Bank. “But the dollar-yen rate is still within an expected range.” Hong Kong and Shanghai mostly moved in tandem, led by declines in Shanghai-listed mainland property developers, which have been hit by expectations of sustained government efforts to cool the sector. But shares in AIA, the Asian unit of troubled US insurer AIG, soared almost 17 percent from their listing price thanks to interest from wealthy Hong Kongers and global investors such as Kuwait’s sovereign fund. The offering could prove to be the second largest in the world this year after the mammoth Agricultural Bank of China listing. Seoul’s stock market fell after data showed industrial output had unexpectedly contracted for a second straight month in September, falling 0.4 percent from August. That overshadowed strong earnings results from Samsung Electronics and Kia Motors. On oil markets, crude prices slid below 82 dollars thanks to the dollar’s gains against the euro, which makes oil less affordable for buyers holding other currencies. New York’s main contract, light sweet crude for December delivery, fell 51 cents to 81.67 dollars a barrel. Brent North Sea crude for December shed 41 cents to 83.18 dollars. Gold closed at 1,339.50-1,340.50 US dollars an ounce in Hong Kong, up from Thursday’s finish of 1,325.00-1,326.00 dollars.