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Asia stocks mixed as Greece concerns linger; Nikkei up 0.2%

Published 09/28/2011, 02:10 AM
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Investing.com – Asian stock markets were mixed on Wednesday, as optimism over Europe’s sovereign debt rescue plan faded amid lingering concerns over Greece’s sovereign debt woes. 

During late Asian trade, Hong Kong's Hang Seng Index tumbled 1.2%, Australia’s ASX/200 Index rose 0.4%, while Japan’s Nikkei 225 Index edged 0.2% higher.

Global equity markets rallied sharply on Tuesday, boosted by hopes that euro zone policy makers were working to increase the size of the European Financial Stability Facility, the region’s bailout fund.

However, a Financial Times report saying that euro zone countries are divided over the terms of Greece’s second bailout package weighed on market sentiment.

Shares in the financial sector were mixed, with Japan’s largest lender Mitsubishi UFJ Financial Group gaining 0.9%, while the nation’s third largest lender Mizuho Financial Group slumped 0.8%.

Exporters were also mixed, amid the uncertain global outlook. Consumer electronics giant Sony jumped 1.9% and Toyota saw shares added 0.8%, while semiconductor manufacturer Elpida Memory saw shares tumbled 3.5%.

The world’s third largest cigarette-maker Japan Tobacco saw shares drop 2.3% on news that the Japanese government may sell its 50% stake in the company to fund the reconstruction of areas of northeast Japan that were hit by the March earthquake and tsunami.

Elsewhere, in Hong Kong, shares in the financial sector led losses, as traders booked profits after rallying sharply in the previous session.

China’s largest lender Industrial and Commercial Bank of China shares dropped 4.1%, after adding 9.9% on Tuesday. Rival China Construction Bank saw shares fall 3.3%, while Bank of China Hong Kong shares tumbled 4.6%.
 
Property developers also contributed to losses, with Sino Land shares slumping 2.7%, while shares in Sun Hung Kai Properties declined 1.75%.

Meanwhile, European stock market futures were sharply lower ahead of a vote in the Finnish parliament on a potential enhancement of the EFSF.

The EURO STOXX 50 futures pointed to a loss of 1.3%, France’s CAC 40 futures retreated 1.4%, the FTSE 100 futures slumped 1.3%, while Germany's DAX futures pointed to a drop of 1.05%.

Later in the day, the U.S. was to produce official data on durable goods orders, while Federal Reserve Chairman Ben Bernanke was to speak.


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