By Chris Oliver, MarketWatch , Shri Navaratnam
HONG KONG (MarketWatch) -- Asian shares ended mostly higher Thursday as investors concluded that tensions on the Korean peninsula and other matters that have weighed on the region’s markets have been priced in already.
The mood was also helped by upbeat expectations for a solid start to the U.S. holiday-shopping season, which unofficially kicks off on Friday.
Export-related shares were higher in Tokyo, helped by a brighter U.S. spending outlook for the holiday season and the Japanese yen’s softening against the dollar.
Japan’s Nikkei Stock Average (JP:NI225 10,080, +49.65, +0.50%) advanced 0.5%, Australia’s S&P/ASX 200 was up 0.2% and South Korea’s Kospi ended up 0.1%.
China’s Shanghai Composite Index (CN:SHCOMP 2,898, +38.33, +1.34%) rose 1.3%, Hong Kong’s Hang Seng Index (HK:HANGSENG 23,055, +30.82, +0.13%) rose 0.1%, while India’s Sensex was down 0.8% late in trading.
Regional sentiment got a lift from Wednesday’s solid rise on Wall Street as well as from improved U.S. November consumer confidence.
“While the [U.S.] labor and housing markets continue to be sluggish, consumption and industrial activity are picking up,” said Tatsunori Kawai, chief strategist at Kabu.com Securities.
He added that expectations are growing for relatively strong sales for Black Friday, as the day after the U.S. Thanksgiving holiday is sometimes known, and the ensuing U.S. holiday-shopping season.
January Nymex crude-oil futures rose to a seven-session high at $84.38 in early Asia trade, but then fell back. They were recently down 10 cents at $83.76 a barrel on Globex.
Oil firms traded mixed as a result, with Woodside Petroleum (AU:WPL 40.65, -0.12, -0.29%) (WOPEY 40.20, +0.71, +1.80%) down 0.3%, while in Hong Kong China Petroleum & Chemical — known as Sinopec (HK:386 7.37, +0.12, +1.66%) (SNP 94.17, +1.37, +1.48%) — rose 1.7% and Cnooc (HK:883 17.06, -0.10, -0.58%) (CEO 225.18, +6.32, +2.89%) fell 0.6%.
In Seoul, market action was muted by concern about continuing sovereign-debt issues in Europe and further tightening moves in China. While tensions on the Korean peninsula have eased after Tuesday’s North Korean artillery barrage on a South Korean island, investors remained cautious.
“The market is searching for a direction now,” said Kim Seung-han at HI Investment & Securities.
Tech shares were mostly lower, with Samsung Electronics off 0.7% and Hynix Semiconductor down 2.1%.
Exporter shares led the Tokyo market higher on the back of the improved U.S. consumer outlook and as the yen retreated versus the U.S. dollar.
Sony (JP:6758 2,871, -61.00, -2.08%) (SNE 35.00, +0.55, +1.60%) was up 0.8%, Sharp (JP:6753 807.00, -13.00, -1.59%) (SHCAY 9.65, +0.10, +1.05%) added 0.4% and Toyota Motor (JP:7203 3,270, -30.00, -0.91%) (TM 78.93, +1.50, +1.94%) rose 1.1%.
