Market Update
Asian shares closed mixed as regional concerns weighed on investor sentiment after a largely positive day of trade Friday.
The Shanghai Composite closed in the red for the seventh straight session, recording its biggest weekly fall in six months, down 1%. A stronger yen caused widespread selling on the Nikkei as the benchmark closed 0.4% lower. The Hang Seng and the S&P/ASX 200 closed up 0.9% and 0.5% respectively. The Sensex gained 1.3%.
Frontline stocks on the Nikkei declined as reports showed the US economy grew at a slower than estimated pace, reducing earnings visibility for Japanese exporters. Data showing consumer prices rose for the first time in two years also dampened the market mood.
Stocks on the Move
Sony Corp lost 3.2% after forecasting profit that fell short of street expectations. The world's largest camera-company, Canon, and industrial robot-maker Fanuc, both of whom get a major part of their revenues outside Japan, fell 0.4% and 1.2% respectively. Toyota, the world's largest carmaker, slipped 0.6% after the company said its production in Japan declined the most in 35 years in April after a historic earthquake disrupted output. Honda Motor also closed 0.8% lower.
Hitachi Construction Machinery Co closed 1.4% higher after it forecast a doubling of net income from a year earlier.
In earnings news, China's biggest computer maker Lenovo jumped 5.3% after tripling fourth quarter net profit. Gome Electrical Appliances Holding, China's second- largest electronics retailer, jumped 8.2% after it posted a rise of 66% in first quarter profit.
But inflationary pressures and fears of an economic slowdown weighed down almost all sectors. Banks and power producers led the fall. Huadian Power International Corp ended down 1.07% and Huaneng Power International fell 3.3%.
Agricultural Bank of China fell 0.7% while Industrial & Commercial Bank of China lost 0.7%. China Construction Bank Corp erased 0.6%. Earlier, the state-run China Daily reported the country's banking regulator would adopt stricter capital requirement calculations.
In India, billionaire industrialist Anil Ambani's group companies stole the limelight as Reliance Infrastructure and Reliance Power closed 3.8% and 5% higher ahead of their results declaration after the bell. Another group company, Reliance Communications was among the top gainers of the day, up 5.6%. Other stocks that advanced were Hindalco, up 5.8%, ICICI Bank, up 4.2% and state-run ONGC, up 3.2%.
Resources stocks buoyed the Australian benchmark with major miners BHP Billiton and Rio Tinto closing 0.5% and 0.6% higher respectively. Fortescue closed up 1.1%.
Woodside Petroleum gained 0.7% while Oil Search also closed 0.4% higher.
Financial stocks closed the day mixed, on news that big banks are set to cut their wholesale term debt borrowings by a third this year.
Online gaming company jumped almost 6% after it said it would be acquired by London-listed Sportingbet for $183 million.