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Asia stocks mixed as markets await Italy; Nikkei down 1.3%

Published 11/08/2011, 02:44 AM
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Investing.com – Asian stock markets were mixed on Tuesday, as shares in Japanese exporters declined ahead of a critical Italian parliamentary vote on budget reforms later in the day, while hopes for policy easing in China lifted shares in Hong Kong.  

During late Asian trade, Hong Kong's Hang Seng Index climbed 0.5%, Australia’s ASX/200 Index eased up 0.15%, while Japan’s Nikkei 225 Index dropped 1.3%.

Italian Prime Minister Silvio Berlusconi’s government faces a key parliamentary vote later in the day, amid growing opposition from within his own political party. Berlusconi resisted calls to resign on Monday, as Italian borrowing costs surged to euro-lifetime highs. 

Meanwhile, Greek Prime Minister Papandreou and opposition leader Antonis Samaras “made progress in talks yesterday to name a head of a national unity government,” according to a government spokesman.

Japanese exporters with high exposure to Europe traded lower, with consumer electronics giant Sony tumbling 4.1%, Hitachi shares falling 2.3%, while semiconductor manufacturer Elpida Memory plunged 10.4%, amid concerns over a slowdown in demand for memory chips.

Automaker Toyota saw shares slump 1.7% ahead of the release of its earnings report due out after the closing bell.

The biggest loser on the Nikkei was Olympus, which saw shares plunge 29% after revelations that its senior management had covered up investment losses, an admission that could lead to legal charges and a delisting of the stock.

Elsewhere, in Hong Kong, shares in lenders performed strongly as markets looked towards Wednesday’s release of monthly inflation data from China. Price increases are expected to ease, reinforcing expectations that the government will refrain in the near-term from monetary tightening.

China’s largest lender Industrial and Commercial Bank of China saw shares gain 1.1%, Bank of Communications rose 1.7%, while Hong Kong-listed shares of Bank of China advanced 1.5%.

Oil producers also contributed to gains, as crude prices traded near a three-month high on the New York Mercantile Exchange. Oil giant PetroChina saw shares climb 2.8%, while CNOOC shares rose 2.3%.

Meanwhile, the outlook for European stock markets was modestly upbeat. The EURO STOXX 50 futures pointed to a gain of 0.35%, France’s CAC 40 futures added 0.3%, the FTSE 100 futures edged 0.25% higher, while Germany's DAX futures rose 0.45%. 

Later in the day, finance ministers from the European Union member states were to meet in Brussels to discuss the region’s ongoing financial crisis.


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