By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Most Asian markets declined Thursday
as sentiment took hits from falling commodity prices and weak U.S.
corporate results, with some technology stocks dropping after a
sharp fall in Apple Inc. shares.
Mainland Chinese and Hong Kong stocks were supported by economic
data showing an improvement in foreign direct investment inflows
and home prices in China.
Japan's Nikkei Stock Average gave up 0.4%, Australia's
S&P/ASX 200 dropped 0.7%, and South Korea's Kospi shed
0.3%.
"Once again, bottom-up views continue to miss analysts' lofty
expectations," said IG Markets strategist Evan Lucas, referring to
recent downbeat results, including from Dow industrial components
Bank of America Corp. (BAC) on Wednesday and Intel Corp. (INTC) a
day earlier.
China markets volatile
The Shanghai Composite Index and Hong Kong's Hang Seng Index
briefly turned positive after the Chinese economic data, before
sliding back again.
By the late morning, the Shanghai Composite was down 0.3%, while
the Hang Seng Index was 0.2% lower after a four-day losing
streak.
The foreign direct investment data showed flows into China rose
to $12.4 billion in March, rising 5.7% from the year-ago
period.
Property shares in particularly advanced in the wake of figures
showing that new-home prices climbed in 68 of 70 top Chinese cities
surveyed in March from levels seen in February, despite recent
measures to further tighten policies on the property sector.
"The rolling out of property loan/price restrictions are clearly
designed to take some of the froth out of the top end of the
market, not intended to destroy the sector altogether," said
Annette Beacher, head of Asia-Pacific research at TD
Securities.
Shares of China Overseas Land & Investment Ltd. (CAOVY)
climbed 2%, and China Resources Land Ltd. (CRBJF) gained 2.5% in
Hong Kong, while Gemdale Corp. added 0.1% in Shanghai, and China
Vanke Co. rose 0.3% in Shenzhen to support the respective
markets.
The advance, however, contrasted with losses elsewhere in the
region after a poor set of U.S. corporate earnings dragged on Wall
Street overnight.
Several exporters and companies with a global exposure were
pulled lower, with industrial-automation major Fanuc Corp. (FANUY)
losing 2%, and camera maker Nikon Corp. (NINOY) shedding 1.6% in
Tokyo.
Logistics firm Li & Fung Ltd. (LFUGY) dropped 0.8% in Hong
Kong, and Hyundai Motor Co. (HYMTF) shrank 1.3% in Seoul.
Resource stocks came under renewed selling pressure as crude-oil
and metals lost further ground.
Heavyweight miner BHP Billiton Ltd. (BHP) tumbled 3.3% in
Sydney, as gold miner Zijin Mining Group Co. (601899.SH) lost 1.8%
in Hong Kong and 0.6% in Shanghai. Steel maker Posco (PKX) gave up
0.9% in Seoul.
Some shares of technology firms in Apple's (AAPL) supply-chain
suffered broad losses after stock in the iPhone maker dropped below
$400 overnight, following a tepid revenue outlook from the
company's chips supplier Cirrus Logic Inc.(CRUS).
LG Display Co. (LPL) lost 3.5% in Seoul, and Hon Hai Precision
Industry Co. retreated 0.9% in Taipei, while Apple's partner
Softbank Corp. (9984.TO) lost 1.7% in Tokyo.
Taiwan's Taiex rose 0.2% in choppy trade.
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