CANBERA (dpa-AFX) - Asian stocks turned in a mixed performance on Thursday, as investors took some profits off the table awaiting the outcome of ECB and Bank of England's policy meetings due later in the session and Friday's U.S. non-farm payroll data.
Investors hesitated to extend their long positions despite the Dow Jones industrial average hitting a fresh record high for a second day overnight on optimism over the U.S. economy. The Federal Reserve's Beige Book report showed that most of the 12 Fed districts expanded 'at a modest to moderate pace' in January and February.
Japanese shares extended gains for a sixth straight session, as shares like Bridgestone and Olympus rose sharply, offsetting weakness in heavyweights like Fast Retailing and Softbank. The Nikkei average rose 0.3 percent to its highest level since late September 2008, while the broader Topix index edged up 0.1 percent. The Nikkei hit a high of 12,070 early in the session before paring gains to close well below the psychologically important 12,000 mark.
Tire maker Bridgestone rallied 4.2 percent on expectations for a record operating profit for the fiscal year through December. Yokohama Rubber rose 1.4 percent and Sumitomo Rubber added 2.2 percent. Olympus soared 5.5 percent, benefiting from a Nikkei report that it is aiming to slash its interest-bearing debt burden by around Y100 billion by the end of the next fiscal.
Fast Retailing lost 0.9 percent and Softbank retreated 2.1 percent on profit taking following recent sharp gains. Sharp slumped 7.9 percent after rallying 14 percent yesterday on reports of a deal with rival Samsung. The Japanese firm confirmed it will receive a 10.4 billion yen investment from Samsung for a 3 percent stake in the company. Lender Sumitomo Mitsui Financial Group fell 2.5 percent and Mitsubishi UFJ Financial Group declined 1.5 percent.
China's Shanghai Composite index lost a percent, dragged down by banks as investors awaited a slew of data due later this week for direction. Trade data is scheduled for Friday, while reports on inflation, industrial output and retail sales are due on Saturday. Hong Kong's Hang Seng index ended on a flat note with a negative bias.
Australian shares lost ground following an early upmove, as disappointing trade figures dragged down financial and telecommunication stocks. The benchmark S&P/ASX 200 as well as the broader All Ordinaries index slipped about 0.2 percent each. ANZ shed 0.8 percent and Westpac fell 1.2 percent, but Commonwealth rose half a percent and NAB added 0.8 percent. Global miners BHP Billiton and Rio Tinto ended on a flat note, oil & gas firm Woodside Petroleum slipped 0.2 percent and Telstra lost 0.7 percent after announcing a bond issue.
Australia's trade deficit widened by more than expected in January as exports fell and imports rose, the Australian Bureau of Statistics reported. The country's trade deficit in the month widened to A$1.057 billion from $688 million in December 2012.
South Korea's Kospi average lost 0.8 percent, dragged down by heavyweight Samsung and other exporters as foreign investors took some profits following two strong days of gains. Shares of Samsung Electronics lost 2.6 percent, while Hyundai Motor shed 0.7 percent and Kia Motors edged down 0.2 percent.
New Zealand shares rose, lifting the benchmark NZX-50 index up 0.8 percent to a record high. Shares of cloud accounting software firm Xero soared 5.5 percent, technology company Diligent Board Member Services jumped 4.6 percent, utility Contact Energy advanced 2.7 percent and heavyweight Telecom gained 2 percent. Sky Network Television rose 2.6 percent after News Corp completed the sale of its 44 percent stake in the nation's largest pay-TV operator.
Rural services firm PGG Wrightson closed unchanged amid news A2 Corp will replace the company in the NZX-50 index on March 18. Restaurant Brands New Zealand eased 0.7 percent as the fast food operator reported a modest 4.5 percent rise in fourth-quarter sales.
Elsewhere, India's benchmark Sensex was moving up 0.2 percent, extending gains for a third straight session, as gains in technology shares offset losses in heavyweights like Tata Motors and Reliance Industries. Indonesia's Jakarta Composite index was up half a percent, Singapore's Straits Times index was gaining 0.2 percent and the Taiwan Weighted average edged up 0.1 percent, but Malaysia's KLSE Composite index edged down marginally.
U.S. stocks turned in a relatively lackluster performance overnight as investors paused for breath following recent gains. An upbeat employment report and a smaller-than-forecast fall in factory orders helped to support the markets to some extent. The Dow rose 0.3 percent to reach a fresh record high and the S&P 500 inched up 0.1 percent, while the tech-heavy Nasdaq slipped marginally.
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