(RTTNews) - The stock markets across the Asia-Pacific region were trading mixed on Friday after U.S. stocks finished higher overnight on a lower-than-expected decline in economic activity in the third quarter. Resources stocks fell on the back of weaker commodity prices. While the Japanese market traded lower on profit taking following three previous sessions of sharp gains, the South Korean market rebounded after a weak start. The Australian market traded lower amid weakness among resources stocks. Crude oil prices continued to decline Friday on worries about slowing demand.
The U.S. Commerce Department's report showed that GDP fell by 0.3% in the third quarter compared to the 2.8% growth that was seen in the second quarter. Economists had been expecting a slightly more significant decrease of about 0.5%. U.S. stocks closed higher Thursday, with the Dow closing up 190 points or 2.1% at 9,181, the Nasdaq gaining 41 points or 2.5% to 1,699, and the S&P 500 advancing 24 points or 2.7% to 954.
Crude oil prices fell Thursday on the New York Mercantile Exchange after the U.S. gross domestic product decreased in the third quarter. Oil settled at $65.40 a barrel, down $0.79. In the Asian session Friday, oil for December delivery was quoted at $64.65 a barrel, down $1.31, by 9:36 p.m. ET.
The U.S. dollar traded in the lower 98-yen levels in early Tokyo deals, down from Thursday's close in the upper 98-yen range in Tokyo. In South Korea, the won plunged against the dollar for the first time in three days. The won was quoted at 1,283.3 a dollar compared to Thursday's close of 1,250.0 a dollar. The Australian dollar opened weaker at US$0.6799-0.6806 and the New Zealand dollar opened little changed at US$0.5931.
The Japanese market was trading sharply lower as investors resorted to profit-taking following the sharp gains recorded over the past three sessions and ahead of the Bank of Japan's decision later in the day whether to cut interest rates. The Bank of Japan will conclude its one-day monetary policy meeting on Friday in Tokyo. After keeping rates on hold for the past 22 meetings, there is heavy speculation that the bank will follow the lead of other global central banks in trimming interest rates, paring the rate by 25 basis points to 0.25%.
At 8.52 P.M. ET, the benchmark Nikkei 225 Index was declining 345.70 points or 3.86% to 8,684.06 and the broader Topix Index of all First Section Issues was down 13.13 points to 886.24.
Among a raft of economic news, the Ministry of Internal Affairs and Communications said that core consumer prices in Japan were up 2.3% on year in September, moving higher for the twelfth consecutive month. Core CPI, excluding volatile fresh food prices, was in line with analyst expectations and follows a 2.4% annual expansion in August. Overall inflation was unchanged in September at 2.1%, in line with forecasts.
Tokyo core CPI for October, considered a leading indicator for the nationwide trend, was up 1.5% on year after a 1.7% annual increase in the previous month. Overall Tokyo inflation was up an annual 1.2% versus expectations for a 1.3% climb and following a 1.4% gain a month earlier. Minus food and energy costs, Tokyo CPI is up 0.4% after a 0.5% annual gain a month earlier.
Meanwhile, activity in Japan's manufacturing sector contracted in October for the eighth straight month, according to the latest survey from Nomura Holdings and the JMMA. The group's Purchasing Managers Index dropped to a seven year low of 42.2 in October, lower than the 50.0 reading that separates contraction in the sector from expansion. The accompanying PMI industrial production index fell in October to 39.7, also the lowest since December 2001.
Later in the day, Japan is also slated to release jobless data, housing starts and construction orders for September.
Banking stocks were trading mixed. Mitsubishi UFJ slid 3.16% and Resona Holdings eased 0.30% while Mizuho Financial added 0.16% and Sumitomo Mitsui advanced 1.83%.
Automaker Toyota slid 4.10%, Honda shed 6.70% and Nissan dipped 3.72%. Mazda slumped 9.31% after it lowered its profit outlook on Thursday. Among export-oriented stocks, Sony lost 3.72% and Canon rose 2.96%. In the tech space, Advantest gained 5.01%, Kyocera slid 3.71%, Fujitsu dropped 5.93% and Fanuc fell 6.27%.
In the oil sector, Inpex Holdings rose 3.46%, while Nippon Oil shed 5.86% and Showa Shell slumped 6.35%. Trading house Marubeni dropped 4.27% and Sojitz lost 2.45%.
The South Korean stock market was trading higher, extending Thursday's sharp gains. Wall Street's gains overnight prompted investors to buy stocks. At 9:13 p.m. ET, the benchmark Korea Composite Stock Price Index or KOSPI was up 10.41 points or 0.96% at 1,095.13 after a weak start.
On the economic front, a central bank report showed that South Korean manufacturers' confidence dropped to the lowest level in nearly five years in November, as companies expected a global economic downturn to hurt their business. The business survey index for manufacturers' expectations declined to 65 in November from 78 in the previous month.
In the tech space, Hynix Semiconductors fell 1.4%, market heavyweight Samsung Electronics plunged 2.8%, and LG Electronics lost 1.1%, while LG Display gained 3.1%.
Automaker Hyundai Motor shed 3.6%, but top steelmaker POSCO gained 3.1%.
In the financial sector, Shinhan Financial Group dropped 2.6% and Woori Finance plunged 5.3%, while Mirae Asset Securities jumped 11.2%.
The Australian stock market was trading lower, despite a triple-digit gain on Wall Street overnight. Resources stocks fell as commodities prices resumed their decline. At 9:18 p.m. ET, the benchmark S&P/ASX 200 index was losing 42 points or 1.05% to 3,959, after closing up 4.04% on Thursday. The broader All Ordinaries index was falling 35 points or 0.89% to 3,922.
On the economic front, the Australia's Housing Industry Association report showed that home sales in Australia declined for a third straight month in September. Sales of new homes decreased 1.8%, following a 1.3% drop in August. Sales of stand-alone houses fell 2.3% in September, the eighth consecutive month of declines for detached house sales.
The Australian Bureau of Statistics also released its data on private sector credit for September. Australia's private sector credit was up 0.7% on month. On an annual basis, private sector credit was up 10.1%. Housing sector credit increased 0.6%, while business sector credit rose 1.1% and personal sector credit was down 0.3% on month.
Among banking stocks, Commonwealth Bank of Australia lost 1.34%, ANZ Banking Group declined 3.13%, and National Australia Bank fell 3.31%. Westpac was down 1.33%, and St. George bank slid 0.93%, while investment bank Macquarie Group edged up 0.24%.
In the resources sector, index leader BHP Billiton fell 3.81% and Rio Tinto lost 3.14%. Gold miners were weaker, after gold closed lower on Thursday. Sino Gold fell 3.29%, Lihir Gold dropped 5.85% and Newcrest Mining edged down 0.83%.
Among energy stocks, Oil Search advanced 1.40%, Woodside fell 3.61% and Santos dropped 3.23%.
In the retail sector, David Jones fell 6.52%, while giant retailer Woolworths gained 1.27%, and Coles' owner Wesfarmers rose 1.01%.
Macquarie Communications Infrastructure Group climbed 31% after said that it would lower its FY09 distribution guidance as part of a strategy to repay $780 million of debt obligations over the next three years.
The New Zealand stock market opened moderately higher on a strong overnight lead from Wall Street. The benchmark NZX 50 index was up 23.86 points or 0.86% to 2,786.68 shortly after the market opened for the day, while the broader NZX All Capital Index gained 20.73 points or 0.74% to 2,827.17.
In the early trading on the New Zealand stock market on Friday, the country's top ranked share Telecom gained 1.30%, while the second ranked Contact Energy collected 0.56%. Fletcher Building, the third best stock, surged 3.83%.
In the retail sector Hallenstein Glasson, jewelry retailer Michael Hill International and Pumpkin Patch remained unchanged, while the Warehouse advanced 1.01%.
In the energy sector Vector inched up 0.49%, while TrustPower remained unchanged in the day's early trading.
Among the dual listed issues AMP, Australia and NZ Banking Corp, APN News & Media, Lion Nathan, Telstra and Westpac Bank remained unchanged.
Other Asian markets
Hong Kong's Hang Seng index is down 3.8% at 13,787; China's Shanghai composite index is down 0.8% at 1,749; Singapore's Straits Times index is down 0.6% at 1,791; Taiwan's weighted index is up 1.2% at 4,741; and Malaysia's KLCI is up 5 points at 858.
