SINGAPORE (Thomson Financial) - Stock markets across Asia were mixed Friday
with Japan declining after disappointing earnings from auto giant Toyota, while
Australia was propped up by gains in the banking and resource sectors as oil
prices set fresh records and metals rallied.
Oil's continued advance above $124 a barrel weighed on markets with a high
reliance on imported fuel, sending benchmarks in South Korea, Hong Kong and
Shanghai lower.
The Nikkei was down down 1.6 percent at 13,727.25 and the broader Topix lost
1.8 percent to 1,348.46.
Toyota fell 2.9 percent to 5,320 yen after it warned it expects earnings to
fall in the current fiscal year, due to a strong yen, higher procurement costs
and a slowdown in demand from the United States.
"There is also emerging wariness about the sustainability of the latest
rebound, given the fact that the Nikkei 225 index has nearly regained the
2,500-point level after hitting a year-to-date-low earlier this year," said
Naito Securities market analyst Yuzo Asai.
The S&P/ASX 200 rose 1.4 percent to 5,804.8 and the All Ordinaries rose 1.3
percent to 5,876.9.
"The banking sector is being very much propped up by a record result from
National Australia Bank and we're also seeing resources stocks perform quite
with another record oil price overnight and higher gold price," said Juilette
Saly, an equities analyst with CommSec.
NAB rose 3.9 percent to A$32.21 after the nation's largest bank reported an
8 percent rise in cash net profit to A$2.2 billion and announced a
higher-than-expected interim dividend of A$0.97 a share.
BHP Billiton advanced 2.1 percent to A$45.90 and Rio Tinto rose 1 percent to
A$146.61.
The Hang Seng lost 1.7 percent to 25,012.37 as investors hunkered down ahead
of a holiday weekend. The Hong Kong market will be closed Monday for a public
holiday.
The Shanghai Composite fell 1.9 percent to 3,586.26 and the Taiwanese Taiex
lost 0.4 percent to 8,832.20.
The Kospi shed 1.2 percent to 1,825.11 and the Singapore Straits Times was
flat at 3,169.37.
The Malaysian KLSE was up 0.4 percent at 1,285.30 and the Philippines
Composite was up 0.6 percent at 2,777.30.
Consumer holds up
The major U.S. stock indexes managed gains overnight after April retail
sales showed consumers are still willing to spend, even if they show a growing
preference for discounters such as Wal-Mart and Costco.
Same-store sales, or sales at stores open for at least a year, rebounded in
April from March and topped analyst estimates, buoyed by promotions and a shift
in the Easter holiday that created an extra selling day.
Wal-Mart and Costco beat forecasts, but clothes and luxury goods retailers
were weak, reflecting the pressure on the consumer from higher food and energy
prices.
Analysts weighing in on the numbers said the outlook remains grim.
"We expect May sales to decelerate, as tougher sales comparisons (+1.1% last
year), less favorable weather (particularly over Memorial Day weekend) and
continued uncertain macro-economic environment (record high gasoline prices and
inflation pressures for food and many product categories) will likely hurt
sales," said Kimberly Greenberger, analyst at Citigroup.
Inflation remains a key focus for Asian investors ahead of the release of
Chinese consumer inflation data on Monday. Analysts are expecting April CPI
growth to remain above 8 pct, even after a series of tightening measures.
China's producer price index rose 8.1 pct in April from a year earlier, the
National Bureau of Statistics said Friday.
" Inflation remains the most pressing issue in China but it seems that the
authorities are coming to terms with it and focusing on supporting growth," said
Tim Condon, chief economist for Asia at ING Bank. "Slowdown in yuans
appreciation, absence of PBOC interest rate hikes so far this year and last
months measures to revive stock market are evidences of pro-growth financial
policies."
Among individual stocks, HSBC fell 1.3 percent to HK$133.20 and China Life
was down 2 percent at HK$32.50.
Ping An Insurance was down 1.8 percent at HK$68.25 after briefly gaining on
news it will postpone an equity and bond offer because of the recent volatility
in the Chinese market.
In Singapore, commodities supplier Noble Group Ltd. climbed 7.5 percent to
S$2.73 after it said first-quarter net profit nearly quadrupled to a record
$167.09 million on the back of strong global demand.
ciara.linnane@thomsonreuters.com
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