Asian markets mostly lower despite U.S. gains

Hong Kong lost 0.13 percent after hitting a more than 15-month closing high Monday, while Sydney ended 0.54 percent down. Tokyo drifted 0.63 percent lower. Shanghai ended up 0.24 percent, but gains were capped by cautious investor sentiment following a report that Beijing planned to review its economic policy sooner than expected.

Asia's lackluster performance came despite a strong lead from Wall Street overnight where the Dow Jones jumped 1.33 percent to a fresh 2009 high.

Market action came after the U.S. government said retail sales jumped 1.4 percent in October, well ahead of expectations, even though a large portion was from the volatile auto sector.

A warning from U.S. Federal Reserve chairman Ben Bernanke that the U.S. economy faced “important headwinds” of tight credit and weak employment as it looks to sustain growth into 2010 also hit sentiment, traders said.

However Bernanke said he sees the economy maintaining growth — after expanding in the third quarter following four quarters of declines — despite fears of a so-called double-dip recession.

TOKYO: Down 0.63 percent. The Nikkei-225 index fell 61.25 points to 9,729.93.

Investors fretted about the impact of a stronger yen on exports and corporate fund raising activities.

“Investors don't want to chase the market higher while there is such tension,” Naoki Fujiwara, fund manager at Shinkin Asset Management, told Dow Jones Newswires.

HONG KONG: Down 0.13 percent. The Hang Seng Index slipped 29.83 points to 22,914.15.

The index ended at a more than 15-month closing high Monday, led by financial companies on talk of a possible yuan appreciation, as President Barack Obama visited China.

SYDNEY: Down 0.54 percent. The S&P/ASX 200 dropped 25.8 points to 4,729.4.

“We're seeing a large dose of profit-taking in the financial space following the huge run they've had over the last three months” said IG Markets research analyst Ben Potter.

SHANGHAI: Up 0.24 percent. The Shanghai Composite Index, which covers both A and B shares, rose 7.84 points to 3,282.89.

Gains were capped by cautious investor sentiment following a report that Beijing planned to review its economic policy sooner than expected, dealers said, highlighting economic uncertainties faced by China.

Stocks listed on the Nasdaq-style ChiNext board ended mixed. SEOUL: Down 0.41 percent. The KOSPI fell 6.49 points to 1,585.98 points.

SINGAPORE: Down 0.68 percent. The blue-chip Straits Times Index fell 18.90 points to 2,764.95. BANGKOK: Flat. The Stock Exchange of Thailand composite index edged down 0.20 points or 0.03 percent to close at 706.55 points.

KUALA LUMPUR: Up 0.13 percent. The Kuala Lumpur Composite Index gained 1.64 points to 1,279.95.

JAKARTA: Up 0.21 percent. The Jakarta Composite Index gained 5.11 points to 2,473.78.

MANILA: Up 0.69 percent. The composite index added 20.73 points to 3,032.09

WELLINGTON: Down 1.34 percent. The NZX-50 index fell 42.45 points to 3,131.5.

MUMBAI: Up 0.11 percent. The 30-share Sensex index rose 18.14 points to 17,050.65.

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