HONG KONG - ASIAN stock markets were mixed on Tuesday, with Tokyo rising despite grim economic data from Japan, as hope remained for fresh stimulus steps by the US government to fight recession.
Tokyo ended 0.80 per cent higher despite the announcement that Japan's own recession was worse than previously estimated.
Official data showing Japan's economy shrank 0.5 per cent in the third quarter 'became a trigger for profit-taking,' Daiwa Securities market analyst Kenji Shiomura told Dow Jones Newswires.
Another wave of job cuts further darkened the outlook in Tokyo when elecronics giant Sony announced 8,000 layoffs.
In Hong Kong, shares were down 1.9 per cent, largely on profit-taking.
'The short-term bias is still on the upside due to improving sentiment, expectations of more government economic stimulus measures and some year-end window-dressing,' said Ben Kwong, chief operating officer at KGI Asia here.
ICEA Securities strategist Ernie Hon said: 'Investors may still expect more stimulus measures from China, but I think it's time to take profit ahead of the outcome.' Sydney fell 0.8 per cent and Shanghai dropped 2.54 per cent.
Asian stocks had rocketed on Monday, following Wall Street's lead on similar hopes for US stimulus moves after poor US jobs data last week.
At the weekend, US president-elect Barack Obama vowed to make the largest investment in infrastructure since the 1950s to revitalise the slumping economy. The Dow Jones Industrial Average then leapt 3.46 per cent on Monday.
'Gains reflected optimism that massive infrastructure spending planned by the Obama administration will end recession in the world's biggest economy,' said Dariusz Kowalczyk, chief strategist at CFC Seymour in Hong Kong.
More US job cuts and a bankruptcy filing by one of America's biggest newspaper publishers also prompted caution on markets.
Dow Chemical announced it would cut about 5,000 full-time jobs, while industrial conglomerate 3M said it was laying off nearly 1,800 people.
US media conglomerate Tribune Co, the owner of The Los Angeles Times and The Chicago Tribune, said it filed for bankruptcy protection in the face of a sharp drop in revenue and a heavy debt load.
At the same time, expectations mounted after Democratic lawmakers in Congress announced Monday that they would introduce a bill making available as much as US$15 billion (S$22.5 billion) in immediate aid for troubled US automakers.
KUALA LUMPUR Malaysian shares closed 0.4 per cent lower Tuesday after profit taking erased earlier gains, dealers said.
The Kuala Lumpur Composite Index lost 3.11 points to end the day at 835.17.
The market was closed on Monday.
SHANGHAI Chinese shares closed down 2.54 per cent on Tuesday as concerns over weak November macroeconomic data due to be released this week weighed down sentiment, dealers said.
The benchmark Shanghai Composite Index, which covers A and B shares, closed down 53.03 points at 2,037.74 on turnover of 104.0 billion yuan (S$22.9 billion).
The Shanghai A-share index shed 55.70 points, or 2.54 per cent, to 2,139.88 on turnover of 103.7 billion yuan, while the Shenzhen A-share index fell 13.36 points, or 2.04 per cent, to 641.70 on turnover of 47.0 billion yuan.
HONG KONG Hong Kong share prices closed 1.9 per cent lower on Tuesday, as investors took profits after the market surged 8.7 per cent the previous day, dealers said.
The benchmark Hang Seng Index closed down 291.65 points at 14,753.22. Turnover was HK$56.93 billion (S$11 billion).
TOKYO Japanese stocks ended 0.80 per cent higher on Tuesday, tracking overnight gains on Wall Street where hopes mounted for fresh stimulus steps by the US government to fight the recession.
The benchmark Nikkei-225 index gained 66.82 points to 8,395.87. The broader Topix index of all first section issues climbed 5.86 points, or 0.72 per cent. -- AFP, AP, BERNAMA
