Asian markets end mixed

Shanghai, Hang Seng turned lower while Sensex bucked the regional trend

Stock markets in Asian region closed mixed on Wednesday following the modest gains overnight on Wall Street. Most of the regional stocks steadied near 11-month highs, as investors paused for breath before more earnings reports.

On Wall Street, stocks loafed after Monday's rally, but still ended slightly in the green with some help from much better than expected pending home sales data and a gentle, final push of late-afternoon buying. The Dow Jones Industrial Average rose 33.63 points, or 0.4%, to 9320.19, and the S&P 500 advanced 3.02 points, or 0.3%, to 1005.65. The Nasdaq Composite tacked on 2.7 points, or 0.1%, to 2011.31.

In the commodity market, crude oil traded little changed before a government report that’s expected to show U.S. crude inventories increased. Crude oil for September delivery traded at $71.18 a barrel, down 24 cents, on the New York Mercantile Exchange at 2:52 p.m. in Singapore. Earlier, it rose 45 cents, or 0.6%, to $71.87 a barrel. Yesterday, oil dropped 16 cents, or 0.2%, to settle at $71.42 a barrel.

Brent crude oil for September settlement was at $74.25 a barrel on London’s ICE Futures Europe Exchange at 2:52 p.m. in Singapore, having earlier risen as much as 53 cents, or 0.7%, to $74.81. Yesterday, the contract gained 73 cents, or 1%, to $74.28.

Gold dropped, ending a four-day rally, on speculation investors will sell holdings after bullion neared a key resistance level. Immediate-delivery gold dropped as low as $963.74 an ounce and was at $963.92 at 1:24 p.m. in Singapore.

In the currency market, the Japanese yen strengthened against its major counterparts as a decline in some Asian stocks prompted investors toward safer-assets. The Japanese yen was quoted at 95.30 against the US dollar, up from Tuesday’s quote of 94.94 yen.

The Hong Kong dollar was trading at HK$ 7.7500 against the dollar. Actually The Hong Kong dollar is pegged at HK$ 7.8 to the U.S. dollar but can trade between HK$ 7.75 and HK$7.85 to the U.S. dollar.

In Sydney trade, the Australian dollar fell today despite finding some support after the release of better-than-expected trade data and improved investor appetite for the currency. At the local close, the dollar was trading at $US0.8404, down slightly from Tuesday's close of $US0.8433. During the day, the unit moved between $US0.8408 and $US0.8453.

In Wellington trade, a strong rises in milk powder prices at Fonterra's monthly Internet auction sent the New Zealand dollar surging up. The kiwi reached a 10-month high around US67.20c a few minutes after the 8am local open today, having been around US66.60c less than an hour earlier.

The South Korean won ended at 1,224.3 won to the U.S. dollar, down 6.3 won from Tuesday's close, as foreign investors reduced their holdings in local stocks.

Coming back in equities, Asian stock markets were mixed on Wednesday as investors awaited fresh clues on whether recent upwards momentum can be sustained. Still, the Hong Kong market was getting support from continued strength in HSBC following its recent strong results.

In Japan, the equity market tumbled with investors taking a breather after the index set a 10-month closing high the previous day. Profit The market witnessed selling especially between auto and financial share amid caution about an overheated. Losses from Isuzu Motors and Elpida Memory dragged auto and technology companies lower. Materials and resources and oil & coal shares tumbled on profit booking. At the closing bell, the Nikkei 225 Stock Average index slid 1.18%, or 122.48 points, to 10,252.53, while the broader Topix index slipped 9.44 points, 0.98%, to 949.58.

In Mainland China, share market tumbled with the benchmark index snapped four days of winning streak as investors locked profits from fourteen-month highs in recent rallies. Financials tumbled amid fears that tightening measures might be introduced to cool the market. Properties plunged on report property sales dropped previous week Materials stocks dived amid worries about companies’ valuation. Shares of coal, steel, oil sectors dived after major index closes at fresh 14-month high yesterday.

At the closing bell, the Shanghai Composite Index, measuring A shares and B shares on the Shanghai Stock Exchange, dropped 1.24%, or 42.94 points, to 3,428.50, while the CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, dived 1.21% to 3,740.98.

In Hong Kong, the benchmark index erased gains as investors locked profits from year-to-date highs in recent rallies. Banks dragged down the market amid renewed credit tightening concerns. Properties and other major heavyweight plummeted amid worries about companies’ valuation. Shares of coal, steel, and energy sectors dived on profit booking after major index closes above eleven month high on Monday. The Hang Seng Index tumbled 301.66 points, or 1.45%, to 20,494.77, while the Hang Seng China Enterprise has lost 250.19 points, or 2.05%, to 11,968.48.

In Australia, the stock market dipped taking a breather from a strong run over the last couple of weeks. The big four banks all retreated, while energy stocks also weighed. Materials and Resources stocks turned lower, despite another gain in metal prices overnight. At the closing bell, the benchmark S&P/ASX200 index slid 44.8 points, or 1.04%, to 4,264.5, meanwhile the broader All Ordinaries stumbled 41.70 points, or 0.97%, to 4,272.2.

On the economic front, the Australian Bureau of Statistics data showed that the nation’s balance of goods and services was a deficit of A$441 million in June2009, seasonally adjusted, from a downwardly revised deficit of A$737 million in May2009. In June, exports rose 2.0% in adjusted terms, while imports were flat.

In New Zealand, stock market fell in line with most of the Asian markets as Wall Street witnessed marginal gains overnight. The benchmark index ended its four-day winning streak on Wednesday. The NZX50 decreased by 0.28% or 8.73 points to 3084.07. The NZX 15 declined 0.43% or 24.50 points to close at 5693.86.

In South Korea, stocks closed lower on profit taking following recent surges. The benchmark Korea Composite Stock Price Index (KOSPI) lost 6.90 points to close at 1,559.47.

In Singapore, the stock market shrunk as investors took profits in major blue chip following a strong recent rally. Manufacturing and multi-industries shares dropped on profit booking. Banks and properties stumbled amid renewed jitters about credit tightening on the China. The blue chip Straits Times Index slid 41.63 points, or 0.6%, to 2,606.83.

In Taiwan, stock markets finished the session at three-week closing low, with leading banking stocks dragged the index lower after it revised downward its first-half earnings. The main TAIEX share index finished down 107.63 points at 6,848.24, reaching its lowest level since 17 July 2009 and extending its loss from Tuesday and Wednesday to 3%.

In India, a recovery in European stocks helped Indian equities score gains in what was a choppy trading session. Sustained buying by foreign funds and on an expected economic recovery in India underpinned sentiment. Oil & gas and IT stocks rose even as auto and realty stocks fell.

The BSE 30-share Sensex was up 72.85 points or 0.46% to 15,903.83. The Sensex rose 142.12 points at the day's high of 15,973.10 in early trade. The Sensex fell 135.87 points at the day's low of 15,695.11 in early afternoon trade. The S&P CNX Nifty was up 13.65 points or 0.29% to 4,694.15.

Elsewhere, Malaysia's Kula Lumpur Composite index went down 0.03% or 0.39 points to 1179.49 while stock markets in Indonesia’s Jakarta Composite index ended the day lower at 2317.06.