CANBERA (dpa-AFX) - Asian stocks reversed early gains to close mostly lower on Friday, as oil extended overnight losses and the dollar stood tall on expectations of a U.S. rate rise in the wake of disappointment from the ECB meeting.
The European Central Bank on Thursday left its ultra-loose monetary policy unchanged and left the door open for more stimulus, but didn't discuss an extension of its monthly €80 billion ($88 billion) bond-buying program.
The dollar hovered near a seven-month high against a basket of currencies after the ECB left is policy mix unchanged and Fed voting member William Dudley reiterated that a rate hike is on the cards by the end of 2016.
Chinese shares eked out modest gains, led by gains in infrastructure-related stocks, after China's finance ministry issued rules for the management of government funds used in private-public partnership projects. The benchmark Shanghai Composite index rose by 6.48 points or 0.21 percent to 3,090.94.
The yuan hit a fresh six-year low after ECB President Mario Draghi signaled that quantitative easing won't come to an 'abrupt' end. Hong Kong stock markets were shut for the day due to a typhoon warning.
Japanese shares snapped a five-day winning streak, as the dollar held flat against the yen and investors waited for major corporate earnings next week. The Nikkei average fell 50.91 points or 0.30 percent to 17,184.59 while the broader Topix index dropped 0.40 percent to 1,365.29.
Nintendo slumped 6.6 percent after unveiling its ambitious Switch device. Nissan Motor rose 0.6 percent after it completed takeover of Mitsubishi Motors. Shares of Mitsubishi Motors soared 4.5 percent. Showa Denko rallied 3.3 percent following an acquisition announcement.
Australian shares lost ground, with weak cues from Wall Street, lower commodity prices and Chinese yuan weakness weighing on sentiment. The benchmark S&P/ASX 200 slid 11.80 points or 0.22 percent to finish at 5,430.30 while the broader All Ordinaries index closed 12.30 points or 0.22 percent lower at 5,513.90.
The healthcare sector underperformed, with shares of hospital operator Healthscope plunging almost 19 percent after a profit warning. Rival CSL dropped 1.5 percent and Ramsay Health Care tumbled 5.9 percent. Gold miners Newcrest, Northern Star and Evolution lost 2-4 percent as gold succumbed to selling on dollar strength after three days of gains.
Woodside Petroleum, Origin Energy and Oil Search retreated 1-2 percent after oil prices fell more than 2 percent overnight on a stronger dollar. Mining giant BHP Billiton rose 0.8 percent as Jac Nasser announced his decision to step down as chairman of the company. Banks Commonwealth, ANZ and Westpac closed up between 0.4 percent and 0.9 percent.
Seoul shares ended a tad lower as Samsung shares once again succumbed to selling pressure on renewed worries over its Galaxy Note 7 smartphones. The benchmark Kospi edged down 7.60 points or 0.37 percent to 2,033.00 while shares of Samsung Electronics declined 1.9 percent.
New Zealand shares closed slightly lower after SkyCity Entertainment's disappointing quarterly result. The benchmark S&P/NZX-50 index dropped 15.38 points or 0.22 percent to 6,958.40, although gainers outpaced decliners.
SkyCity shares slumped nearly 12 percent to hit a one-year low after the casino operator reported lower first-quarter revenue due to a drop in its VIP gambling business, and warned that it is likely to be adversely affected by the recent arrests of Crown employees in China.
Elsewhere, benchmark indexes in India, Indonesia, Malaysia, Singapore and Taiwan were down between 0.1 percent and 0.4 percent.
Overnight, U.S. stocks fluctuated before closing modestly lower, as oil prices tumbled and investors digested a mixed bag of earnings results and economic data.
A rally in American Express and health care stocks helped offset losses in the telecom and technology sectors. The Dow dropped 0.2 percent, while the tech-heavy Nasdaq and the S&P 500 slipped around 0.1 percent each.
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