By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- Asia stocks lost ground Friday, with the
Japanese market dented by a stronger yen, and earnings working to
depress Australian shares, while Hong Kong came under some pressure
from weak European data.
Japan's Nikkei Stock Average declined 1.1%, while South Korea's
Kospi and Australia's S&P/ASX 200 index traded fractionally
lower.
Hong Kong's Hang Seng Index slipped 0.2%, while Mainland Chinese
markets remained closed all week for a holiday.
The Nikkei Average was showing a week-to-date gain of 0.3% while
Sydney's S&P/ASX 200 was up 1.3%, the Kospi was higher by 1.6%,
and the Hang Seng Index was up 0.6%.
Friday's action followed a lackluster U.S. lead, as Wall Street
held in a tight range Thursday.
While U.S. jobless claims surprised positively, international
economic news remained bleak, with data showing gross domestic
product in the 17-nation euro zone contracted by 0.6% during the
fourth quarter.
In Hong Kong, globally exposed ports operator Cosco Pacific Ltd.
(CSPKY) fell 1.1%, while Europe-exposed apparel firm Esprit
Holdings Ltd. (ESHDF) fell 0.6%.
Banking giant HSBC Holdings PLC (HBC), which is based in London
and has significant operations across Europe, fell 0.5%.
Hong Kong-listed property companies were losing ground as well,
with Wharf Holdings Ltd. (WARFY) down 1.5% and Cheung Kong Holdings
Ltd. (CHEUY) losing 0.9%.
Yen in focus ahead of G-7
Delegates from the overlapping Group of 20 and Group of Seven
blocs of major economies were due to meet later Friday in Moscow,
and may make some references to Japan's recent aggressive measures
to weaken its currency.
Those actions have included strong rhetoric on the yen's level
and the setting of a formal 2% inflation target, as well as a
commitment to open-ended asset purchases from next year.
Earlier in the week a joint G-7 statement sparked a bought of
volatility in the yen. The dollar slipped below the Yen93 level
overnight as "markets remain alert to G-7/G-20 headlines,"
according to currency strategists at BNP Paribas.
A stronger yen tends to depress investor appetite for Japanese
companies that make a significant portion of their profit
overseas.
Currency-sensitive auto stocks were among the worst performers
Friday in Tokyo, with Mazda Motor Corp. (7261.TO) down 5.5%, and
Subaru maker Fuji Heavy Industries Ltd. (FUJHY) losing 4.3%.
Technology exporters' losses included a 2.7% drop for Casio
Computer Co. (CSIOY) and a 3% loss for Panasonic Corp. (PC)
Shares of Sony Corp. (SNE) fell 4%. U.S. videogame-console and
software sales dropped in January, according to NPD Group. Sony is
widely expected to unveil its new gaming console at an event Feb.
20.
In the metals sector, Nippon Steel & Sumitomo Metal Corp.
declined 3.9%, after it posted a quarterly profit but released a
weaker-than-expected earnings forecast for its fiscal year on
Thursday.
Other steel firms likewise dropped, with Kobe Steel Ltd. losing
6.3%, and Sumitomo Metal Mining Co. (5713.TO) down 4.2%.
Also trading lower after posting earnings, Trend Micro Inc.
(TMICY) lost 8%. Kirin Holdings Co. (KNBWY) fell 4.9% after the
Japanese brewer posted a sharp gain in full-year profit but said
2013 pretax profit will likely fall 5% on sales promotion costs,
according to a Nikkei news report.
In Australia, banking group Australia & New Zealand Banking
Group Ltd. (ANEWF) declined 0.6% after the lender reported a 20%
drop in first-quarter net profit amid soft economic conditions.
Miners were the worst performers by sector, with Rio Tinto Ltd.
(RIO) weighing on the market as it traded 2.3% lower after posting
a fiscal-year loss late Thursday.
Rival BHP Billiton Ltd. (BHP) fell 0.6%.
In South Korea, steel giant Posco (PKX) advanced 0.1%, while
Samsung Electronics Inc. (SSNLF) also inched up 0.1%.
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