Asian Shares Mixed Despite Fujii Resignation offer

HONG KONG : Asian shares were mixed on Wednesday as dealers eased off after two days of advances, as reports Japan’s finance minister offered to resign on health grounds failed to ruffle investors.

The Nikkei in Tokyo closed up 0.46 percent at 10,731.45 while Sydney ended flat at 4,925.90 points as optimism about resources stocks was offset by a fall in banking shares.

Hong Kong was 0.33 percent stronger in afternoon trade as Chinese shares rose 0.26 percent, rebounding from early losses with metals companies leading the gains. Singapore was 0.33 percent up.

Commodities companies were higher, although a stronger dollar offset crude’s recent gains on a severe winter in the northern hemisphere and expectations of further demand growth due to hopes for the global economy.

Japanese stocks gained in the first trading session since news broke that 77-year-old Finance Minister Hirohisa Fujii had offered to resign for health reasons.

The market was awaiting developments as Prime Minister Yukio Hatoyama has reiterated his desire for his minister to remain in his post.

“The market is very calm about this,” said Masamichi Adachi, a senior economist at JPMorgan Chase.

“We don’t expect major changes from this. The budget proposal for the next fiscal year is already finished. It is unlikely that it will be changed.”

Asian auto makers were given a boost overnight when data showed they had overtaken their American counterparts in sales in the United States market.

The overall share of the Detroit Three — General Motors, Ford and Chrysler — fell to 44.2 percent of their home market from 47.5 percent in 2008.

Asian brands captured a 47.4 percent share in 2009.

The news boosted Toyota Motors 2.4 percent.

And in Australia Jetstar and AirAsia unveiled plans Wednesday to slash costs and ticket prices by pooling some resources, taking the first step in an alliance which could transform the Asian budget market.

The arrangement was described by Jetstar chief executive Bruce Buchanan as a world first between low-cost airlines.

Shares in Qantas, of which Jetstar is a subsidiary, rose 1.4 percent to 3.0 Australian dollars (2.7 US) shortly after the announcement but ended down one cent at 2.95 dollars.

Overnight, New York’s main futures contract, light sweet crude for delivery in February, edged down two cents to close at 81.75 dollars a barrel, while Brent North Sea crude was steady at 80.59 dollars in London trading.

Despite oil’s losses commodities companies were still upbeat on the general upward trend. In Australia miner BHP Billiton added 1.25 percent to 43.82 Australian dollars, while rival Rio Tinto was 2.92 percent higher at 78.58.

The US dollar rose to 92.09 yen in Tokyo afternoon trade, from 91.70 yen in New York late Tuesday. The euro dropped to 1.4345 dollars after 1.4367 but rose to 132.18 yen against 131.74.

In Hong Kong, gold was at 1,123.70 US dollars an ounce in the afternoon, slightly lower than Tuesday’s close of 1,127.50 dollars.

Elsewhere, Seoul gained 0.87 percent to 1,705.32, helped by the US auto market data, while Taipei added 1.42 percent to 8,327.62.

Wellington was 0.10 percent up at 3,271.57 and Manila edged 0.38 percent higher to 3,039.93.

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Asian Shares Mixed Despite Fujii Resignation offer was first posted on January 6, 2010 at 3:35 pm.