HONG KONG - ASIAN stock markets were mixed on Friday in quiet holiday trade amid new evidence that companies and consumers alike were struggling as the global economy slumps.

In Japan, automakers and other manufacturers slashed their output last month by 8.1 per cent - the biggest drop since records were started in 1953 - in the face of slowing demand overseas. Production was expected to slide further in the months ahead with an 8 per cent fall estimated in December, the government said, aggravating the recession in the world's No. 2 economy.

Major exporters from Toyota Motor Corp to Sony Corp have taken a beating since the American economy, a huge buyer of Asian goods, slipped into recession and American consumers began cutting back their spending.

There was more bad news overnight as data showed holiday sales at US retailers shrank between 5.5 percent and 8 per cent from a year ago last month, according to a MasterCard Advisors unit that tracks total sales paid during the period. A weak economy and strong winter storms were mostly to blame.

'Sentiment is relatively cautious given the slew of numbers have been pretty poor. On the economic front and the corporate front there's nothing to cheer about,' said Mr Song Seng Wun, economist at CIMB-GK in Singapore.

In Japan, the Nikkei 225 stock average advanced 140.02 points, or 1.6 per cent, to 8,739.52 as some investors picked up beaten-down shares. Markets in Taiwan and India were also higher.

South Korea's Kospi fell 0.6 per cent to 1,121.43, while Shanghai's key index lost 0.5 per cent to 1,843.56.

Hong Kong and Australian markets were closed, as were those in Britain, Germany and France.

US markets were set to reopen Friday after being closed for the Christmas holiday. Wall Street gained in a shortened session on Tuesday, and futures were modestly higher. Dow futures were up 35 points, or 0.4 per cent, to 8,423, while S&P futures were up 6.4 points, or 0.75 per cent, to 865.

In Japan, automakers rebounded after seeing heavy selling in recent days, with Toyota rising more than 2 per cent. China's biggest steel company, Baoshan Iron & Steel, shed 0.8 per cent in Shanghai.

In currencies, the dollar traded at 90.37 yen, down from 90.31.

The euro rose to US$1.4069 from US$1.4014.

Oil prices recovered moderately, with light, sweet crude for February delivery adding 83 cents to US$36.18 a barrel in Asian trade on the New York Mercantile Exchange by midday in Singapore. The contract on Wednesday fell US$3.63 to settle at US$35.35. -- AP

KUALA LUMPUR
Malaysian shares closed 0.3 per cent lower on Friday on thin trading with most investors still away for year-end holidays, dealers said.

The Kuala Lumpur Composite Index lost 2.27 points to close at 867.35.

SHANGHAI
Chinese shares closed almost flat on Friday as new data showing weak industrial profits highlighted the country's slowing economy, dealers said.

The benchmark Shanghai Composite Index, which covers A and B shares, closed down 0.90 points or 0.05 per cent at 1,851.52 on turnover of 34.9 billion yuan.

The Shanghai A-share index shed 1.00 points, or 0.05 per cent, to 1,944.21 on turnover of 34.8 billion yuan, while the Shenzhen A-share index was down 3.91 points, or 0.65 per cent, at 598.78 on turnover of 22.3 billion yuan.

TOKYO
Japanese share prices closed up 1.63 per cent on Friday as dealers brushed aside grim economic data and welcomed an easing of the yen, whose recent spike has scared exporters.

Dealers sought out holiday bargains after this year's heavy falls, but volume was slim with many dealers away for the holiday season.

The Tokyo Stock Exchange's benchmark Nikkei index rose 140.02 points to close at 8,739.52. The broader Topix index of all the Tokyo Stock Exchange First Section issues gained 10.56 points or 1.26 per cent to 846.58.

HONG KONG
Hong Kong stock markets were closed for public holiday on Friday. -- AFP, BERNAMA