(RTTNews) - Most Asian stocks fell on Monday as a spike in oil prices for a fourth day stoked concerns that economic growth will falter. Also, investors were directionless as the U.S. and European markets remained closed on the last day of the previous week for Good Friday. Activity remained mostly stock-specific in most markets with quarterly earnings results providing some direction.
Meanwhile, gold and silver prices climbed to record highs, as a weak dollar, rising geopolitical tensions in the MENA region and speculation that China may reduce its U.S. dollar holdings sparked a scramble for precious metals.
The U.S. dollar languished around its 16-month low against the euro on speculation that the Federal Reserve will keep borrowing costs near zero even as other central banks raise interest rates. Fed chairman Ben Bernanke is slated to conduct the first post-policy meeting media briefing on Wednesday, where market participants expect him to maintain an incredibly dovish stance and allow "quantitative easing" to run its full course.
Japanese stocks eased slightly as investors were reluctant to take fresh positions ahead of the earnings season this week. The 225-issue Nikkei Stock Average finished the day 0.11 percent lower while the broader Topix index of all First Section issues on The Tokyo Stock Exchange lost 0.18 percent. Stocks received some support early in the morning, helped by a softer yen, but they lost ground subsequently as the yen's slide came to a halt.
Honda Motor lost 1.27 percent, Toyota Motor shed 0.61 percent and Nissan Motors fell 1.81 percent after reporting sharply lower domestic production numbers for March due to the devastating earthquake and the resulting disruption of parts supply chains.
However, KDDI Corp. closed up 0.59 percent ahead of its results later in the day. Komatsu ended up 0.4 percent on a Nikkei report that it may report a 30 percent rise in group operating profit for the current fiscal year. Mitsubishi Heavy Industries rose over a percent lifted by positive earnings expectations.
China's Shanghai Composite Index, which tracks both A and B shares, ended down 1.51 percent on inflation concerns. Metal companies such as Zhongjin Gold and Jiangxi Copper led the decliners due to profit taking following recent sharp gains.
Yuan appreciation may have a limited effect on rising prices in China, as imported inflation accounts for only a part of price growth and the inflow of speculative capital may offset any price advantages, a government researcher said in remarks published Monday in the Securities Times.
