Asian markets ended mixed in a volatile session Thursday ahead of key corporate earnings reports from the U.S. and after data from China hinted that its economy may be on a recovery path. Several regional indexes either retreated or pared early gains as investors locked in profits after data showed an improvement in the China's industrial production and urban fixed investment, while first-quarter economic data came in slightly ahead of analysts' estimates. Japan's Nikkei 225 ended up 0.1% at 8755.26, failing for the third time in a week to finish above the 9000-point level after crossing the psychologically-important level during the session. China's Shanghai Composite also slipped 0.1%, Hong Kong's Hang Seng reversed initial gains to end down 0.6%, Australia's S&P/ASX 200 closed 0.8% higher at 3775.70, Taiwan's Taiex added 2.1%, South Korea's Kospi rose 0.3% and New Zealand's NZX 50 gained 2.4%. "The bottoming out talk is becoming more prevalent," said ABN Amro Craigs broker James Porteous in New Zealand. "We are seeing buying coming back in with people putting their toes back into the market, though the volumes are not great." In afternoon trading, India's Sensex fell 1.9% and Singapore's Straits Times declined 1%. U.S. stock futures were recently down 54 points in screen trade. Later in the U.S. day, Google is due to announce its results, while Citigroup and General Electric are among those reporting on Friday. Economic data from China showed the country's first-quarter GDP grew 6.1%, while January-March urban fixed-asset investment rose 28.6%, above the 26.5% forecast. Nomura economist Robert Subbaraman said GDP lagged other indicators suggesting the economy had started to turn around. "GDP is the most rear-view mirror of all the economic statistics. If you look at the March data for fixed asset investment, loan growth and industrial production, they have all picked up strongly from earlier in the quarter." Exporters declined in Tokyo on a strengthened yen, with Toyota Motor losing 2.4% while Nissan Motor ) gave up 1.5%. Among banks, Sumitomo Mitsui Financial Group shed 1.8%, Mitsubishi UFJ Financial Group ) lost 3.1% and Mizuho Financial Group ended flat after Fitch Ratings placed their ratings on negative watch, on concerns over their profitability. But steelmakers gained along with commodity stocks more broadly, with JFE Holdings rising 3.1% and Nippon Steel up 1.3%. Steelmakers also rose elsewhere, with Posco up 4.1% in Seoul, Baoshan Iron & Steel gaining 1.8% in Shanghai and Angang Steel Co. adding 2.4% in Shenzhen. Chip stocks were higher in Asia with Japan's NEC Electronics surging 12.1% after the Nikkei reported that the company and Renesas Technology were negotiating to integrate their businesses in a move that would create Japan's largest chip maker. In Taiwan, Inotera Memories jumped 6.8%, while Mediatek rose 1.9%. "The consensus is the technology sector and the economy hit bottom in the first quarter and will gradually recover in the second quarter," said Taiwan International Securities trader Cecelia Lu. Thai shares were recently down 1.3% amid strong volumes, giving up early gains, as investors returned from a long holiday. Fitch cut the country's local and foreign currency debt ratings, citing the violent political turmoil in the country. Malaysian shares lost 0.2%, Indonesian shares were up 1.3% and Philippine shares advanced 2.1%. In foreign-exchange markets the U.S. dollar was down at 98.68 yen, down from 99.46 yen late in New York and 99.53 yen earlier in Asia. The euro was at 130.03 yen versus 131.56 yen. Spot gold was up 90 cents from New York levels, at $891.50 a troy ounce. Front-month Nymex crude oil futures were up 70 cents on Globex at $49.95 a barrel, after slipping 16 cents in New York.

Source