Most Asian markets heading lower


Things are looking up for the Japanese economy

HONG KONG, China -- Asian markets are trading mostly lower heading into the afternoon Thursday, as profit-taking sets in following recent gains. Hong Kong is off about 1.6 percent.

But stocks in Tokyo are defying the downtrend, thanks to further data pointing towards an economic turnaround in Japan.

The benchmark Nikkei average closed the morning up 30.85 points, or 0.26 percent, at 11,992.83. The broader capital weighted Topix index rose 7.99 points, or 0.71 percent, to 1,137.66.

Taiwan is also moving higher as efforts to establish direct trade links with the mainland lift China plays and transport shares.

Among other markets, South Korea, Australia, Singapore, and Hong Kong are lower in cautious trade.

After a late turnaround Wednesday, the Dow Jones industrial average closed 0.52 percent firmer at 10,157.88, while the tech-laden Nasdaq composite index rose 0.56 percent to 1,673.45.

Economic rebound

Evidence pointing to a recovery in the Japanese economy helped offset the negative effects of a firmer yen. A government report Thursday said Japan's exports rose in April from a year ago for the first time in 13 months.

On Wednesday, the Bank of Japan upgraded its view of the economy for a third straight month.

Mizuho Bank rose 3.51 percent to 295,000 yen, UFJ Holdings climbed 3.87 percent to 376,000 yen and Sumitomo Realty jumped 6.56 percent to 829 yen.

Auto exporters were lower on worries the yen's firmer trend may harm their earnings. Honda Motor fell 3.22 percent to 5410 yen, Nissan dropped 2.27 percent to 946 yen and Toyota Motor lost 1.45 percent to 3410 yen.

South Korea's market was dragged down by index heavyweight, chipmaker Samsung Electronics, which shed 1.89 percent to 363,000 won.

The main Kospi is down 1.78 percent at 847.69 heading into the afternoon.

But top mobile carrier SK Telecom added 1.43 percent to 283,500 won.

Gold up

Australian shares are also lower moving into the afternoon, but gold shares continue to dazzle investors as a safe haven. The gold bullion price set a new high for the year near $320 an ounce, over growing fears about tensions between India and Pakistan.

The benchmark S&P/ASX 200 Index is down 0.53 percent at 3371.9.

Shares in media company John Fairfax fell 3.8 percent to A$3.54, while News Corp. slid 15 cents to A$13.52

Banking shares are mostly strong with National Australia Bank, Westpac Bank, and the Commonwealth Bank all making gains.

Aurion Gold rallied to new highs, rising 1.2 percent to A$3.40. Lihir Gold was also up more than one percent to A$1.48.

In Taiwan, stocks are moving higher as investors hunt for China plays and transportation stocks.

The main Taiex share index is up slightly at 5,542.96, lifted by EVA Airways which surged the seven percent daily trading limit to T$12.17.

But memory chipmaker Mosel Vitelic lost 2.25 percent to T$10.85, reversing earlier gains.

Phone carriers down

Hong Kong stocks are lower in morning trade led by top Chinese cellular phone carrier China Mobile on concerns over an uncertain outlook for the global telecoms sector.

The benchmark Hang Seng Index is down 1.6 percent at 11,7606.68.

China Mobile fell 1.69 percent to HK$26.15, while its smaller rival China Unicom dropped 1.32 percent to HK$7.45.

China Unicom said Wednesday it was having difficulty attracting high-end users to its CDMA-standard service.

China's dominant personal computer maker Legend Group was unchanged at HK$3.325 ahead of its results announcement later in the day.

In Singapore, shares are moving lower. The Straits Times Index is down 0.58 percent to 1727.48 by late morning.

Electronics components distributor WesTech Electronics made a good debut, up S$0.60, or a 71 percent jump from its initial public offering price of S$0.35.

OCBC Bank slipped 0.8 percent to S$13.00.