SINGAPORE (Dow Jones)--Asian shares were mostly down Monday in volatile trade amid subdued sentiment, while traders in Tokyo remained on high alert for yen-selling intervention by Japanese authorities after the currency advanced to a fresh record high on Friday.
Gold was well-bid after surging to a fresh record high on Friday, while oil prices were down as Libyan rebels poured into Tripoli on Sunday after seizing a nearby military base, opening the way for a final strike against Col. Moammar Gadhafi's defenses.
"Another record level for gold and continued buying of bonds appear to indicate that globally investors are looking for a safety first approach," said Michael McCarthy, chief market strategist at CMC Markets in Sydney. "While shares look cheap on current measures, concerns about the global outlook may push them further into value territory (Monday)," he said.
A drop on Wall Street Friday dampened demand in regional markets. Japan's Nikkei Stock Average was off 0.1%, Australia's S&P/ASX 200 climbed 0.3%, South Korea's Kospi Composite shed 1.0%, China's Shanghai Composite Index fell 0.5%, Hong Kong's Hang Seng Index lost 0.9% and India's Sensex was 0.5% higher.
Dow Jones Industrial Average futures were down 16 points in screen trade.
The soggy equities and risk-aversion weighed on the euro, while the yen pulled back against the dollar on expectations of potential intervention by Japanese authorities after the safe-haven currency surged to a fresh record high of Y75.94 Friday. Japan's Finance Minister Yoshihiko Noda stepped up his rhetoric against the yen's strength Monday, saying decisive steps will be taken to counter any speculative moves.
The dollar was at Y76.74, from Y76.54 late Friday in New York. The euro was fetching $1.4368 against the greenback, from $1.4396, and Y110.27 against the yen, compared with Y110.20.
In Tokyo, tentative buying on the back of a modest pullback by the yen early Monday was offset by persistent concerns about the absolute level of the Japanese currency and the global growth outlook.
Fast Retailing advanced 2.0% on steady earnings prospects, but automakers underperformed with Toyota down 1.9% and Honda down 1.6% on an uncertain global economic outlook and the yen's strength.
Some investors zoomed in on defensive stocks. In Seoul, utility stocks bucked the broader market with Korea Electric Power up 6.0% and Korea Gas 6.5% higher, while telecommunications play China Mobile climbed 1.7% in Hong Kong, as investors sought to shelter their investments.
Corporate earnings had a mixed impact on the Australian market. BlueScope Steel fell 6.7% after reporting a full-year net loss of A$1.05 billion, while Amcor advanced 3.4% after its full-year earnings of A$571 million topped market expectations.
Gold prices were solidly bid though slightly off the record high of $1,878.18 per ounce tapped Friday. The yellow metal was recently at $1,870.60, up $17.50 from New York. September Nymex crude oil futures were down 25 cents at $82.01 per barrel.
September Japanese government bond futures were up 0.09 at 142.86.
-Shri Navaratnam, Dow Jones Newswires; +65-6415-4142; shri.navaratnam@dowjones.com
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