HONG KONG : Asian stocks were mixed on Thursday as lingering positive sentiment from rate moves by the Japanese and US central banks was balanced by profit-taking.
Hopes for an economic recovery were boosted on Wednesday after the Bank of Japan (BoJ) held rates at a record low and said it would double a loan facility available to other banks.
That announcement came after the US Federal Reserve pledged to keep rates near zero "for an extended period" in light of tame inflation and high unemployment to help a fragile recover from severe recession.
The news gave impetus to the markets, sending shares higher Wednesday on hopes for the global recovery.
Hong Kong extended gains on Thursday, edging up 0.16 percent, Shanghai rose 0.12 percent, while Seoul grew 0.18 percent and Taipei 0.30 percent.
The BoJ said Wednesday it would raise to 20 trillion yen (220 billion dollars) a short-term loan facility that banks could access to free up money, as it tries to kickstart the nation's faltering recovery.
It also said it would keep interest rates at near-zero percent -- where they have been since December 2008 -- to fight deflation, which is holding back a rebound.
Some dealers on Thursday also took their lead from Wall Street, which was 0.45 percent stronger after a Labor Department report showed US producer prices fell in February, snapping a four-month increase and stoking share-buying sentiment.
However, with little else to give direction, many investors chose to sell up or stay on the sidelines.
Tokyo was 0.21 percent lower by the break while Sydney edged lower and Singapore was down 0.38 percent.
"The Dow has had seven consecutive days of gains and I think some people are looking for the market to pull back, because they want to buy and you're seeing a bit of profit-taking as well," said RBS Morgans analyst Craig Walker.
The greenback fell to 90.20 yen in Tokyo morning trade from 90.33 yen late Wednesday in New York. The euro fetched 1.3713 dollars from 1.3735 dollars in New York, while dropping to 123.75 yen from 124.05 yen.
Oil was lower, with New York's main contract, light sweet crude for April delivery, down 27 cents to 82.66 dollars a barrel and Brent North Sea crude for May delivery dropping 37 cents to 81.59 dollars.
Gold opened at 1,122.00-1,123.00 US dollars an ounce in Hong Kong, down from Wednesday's close of 1,130.00-1,131.00 US dollars an ounce.
Copyright AFP (Agence France-Presse), 2010 |
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