By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- Most major Asia stock markets stuck
close to the flat-line Friday, but Japan was an exception, falling
sharply as the yen gained strength ahead of a meeting of top
finance ministers.
South Korea's Kospi and Australia's S&P/ASX 200 index each
traded fractionally higher, while Hong Kong's Hang Seng Index
slipped 0.1%, and mainland Chinese markets remained closed for a
holiday.
But the most prominent mover in the region -- Japan's Nikkei
Stock Average -- dropped 2%.
"Japan continues to grab headlines in Asia with plenty of yen
positioning ahead of the [Group of 20] meetings. The Nikkei
[Average] has lost ground as the yen appreciates, heading into the
meeting," said IG Markets strategist Stan Shamu.
Delegates from the overlapping Group of 20 and Group of Seven
blocs of major economies were due to meet later Friday in Moscow,
and may make some references to Japan's recently aggressive
measures to weaken its currency.
Those actions have included strong rhetoric on the yen's level
and the setting of a formal 2% inflation target, as well as a
commitment to open-ended asset purchases from next year.
Earlier in the week, a joint G-7 statement sparked a bought of
volatility in the yen, and the "markets remain alert to G-7/G-20
headlines," according to currency strategists at BNP Paribas.
On Friday, the dollar (USDJPY) slipped to Yen92.44, down from
Yen92.85 late Thursday after spending much of the week above
Yen93.
A stronger yen tends to depress investor appetite for Japanese
companies that make a significant portion of their profit
overseas.
Currency-sensitive auto stocks were among the worst performers
Friday in Tokyo, with Mazda Motor Corp. (7261.TO) down 5.9%, and
Subaru maker Fuji Heavy Industries Ltd. (FUJHY) losing 4.5%.
Technology exporters' losses included a 2% drop for Casio
Computer Co. (CSIOY) and a 3.4% loss for Panasonic Corp. (PC)
Shares of Sony Corp. (SNE) fell 4.6%. U.S. videogame-console and
software sales dropped in January, according to NPD Group, and Sony
is widely expected to unveil its new gaming console at an event
Feb. 20.
Earnings sway Tokyo, Sydney
In the Japanese metals sector, Nippon Steel & Sumitomo Metal
Corp. declined 4.3% after it posted a quarterly profit but released
a weaker-than-expected earnings forecast for its fiscal year on
Thursday.
Other steel firms likewise dropped, with Kobe Steel Ltd. losing
5.5%, and Sumitomo Metal Mining Co. (5713.TO) down 4.6%.
Kirin Holdings Co. (KNBWY) fell 5% after the Japanese brewer
posted a sharp gain in full-year profit but said 2013 pretax profit
will likely fall 5% on sales promotion costs, according to a Nikkei
news report.
Also trading lower after posting earnings, Trend Micro Inc. (TMICY) lost 7.8%.
In Australia, banking group Australia & New Zealand Banking
Group Ltd. (ANEWF) declined 0.6% after the lender reported a 20%
drop in first-quarter net profit amid soft economic conditions.
Miners were the worst performers by sector, with Rio Tinto Ltd.
(RIO) weighing on the market as it traded 2.1% lower after posting
its first fiscal-year loss late Thursday.
Rival BHP Billiton Ltd. (BHP) fell 0.4%, while gold major
Newcrest Mining Ltd. (NCMGF) declined 0.9%.
Offsetting those losses, supermarket operator Wesfarmers Ltd.
climbed 1.5%, and Westpac Banking Corp. (WBK) rose 1.7%.
South Korean trading saw steel giant Posco (PKX) advance 0.4%,
while electronics major Samsung Electronics Inc. (SSNLF) edged up
0.3%.
In Hong Kong, globally exposed ports operator Cosco Pacific Ltd.
(CSPKY) fell 1.1%, while Europe-exposed apparel firm Esprit
Holdings Ltd. (ESHDF) fell 0.6%.
Banking giant HSBC Holdings PLC (HBC), which is based in London
and has significant operations across Europe, fell 0.5%.
While U.S. jobless claims surprised positively, international
economic news remained bleak on Thursday, with data showing gross
domestic product in the 17-nation euro zone contracted by 0.6%
during the fourth quarter.
That combination led to a lackluster performance on Wall Street
Thursday, where stocks held in a tight range.
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