Asian stocks fluctuated as mining companies and banks rose after oil and metal prices gained and Standard Chartered Plc's Asia head said he is ``cautiously optimistic.'' Japanese automakers fell as the yen strengthened.
BHP Billiton, the world's biggest mining company, gained 1.2 per cent in Sydney. Newcrest Mining, Australia's biggest gold producer, increased 1.8 per cent as gold climbed to a six-week high in New York. Standard Chartered, the British bank that makes 90 per cent of its earnings in Asia, climbed 5 per cent in Hong Kong. Mitsubishi Motors Corp. slumped 7.6 per cent in Tokyo after the carmaker and Paris-based PSA Peugeot Citroen said they won't form an alliance.
The MSCI Asia Pacific Index was little changed at 120.83 in Tokyo, after a four-day, 3.3 per cent climb. It swung between gains and losses at least eight times. The gauge has fallen 4.7 per cent from a 17-month high on Jan. 15 on concern about budget deficits in Europe and speculation governments around the world will start withdrawing stimulus.
``We've had a few scares out of left field recently, but nothing seems to be blowing out into a full-blown systemic issue as it did in the thick of the credit crisis,'' said Prasad Patkar, who helps manage about $1.8 billion at Platypus Asset Management in Sydney. ``While companies are cautious in their comments, they're becoming fairly bullish in their actions.''
Hong Kong's Hang Seng Index slumped 0.5 per cent, while China's Shanghai Composite Index declined 0.6 per cent. South Korea's Kospi Index lost 0.2 per cent. Japan's Nikkei 225 Stock Average was little changed.
US recovery
Futures on the US Standard & Poor's 500 Index dropped 0.2 per cent. The gauge rose less than 0.1 per cent yesterday as ADP Employer Services said companies last month cut the fewest jobs in two years. The Institute for Supply Management's index of non-manufacturing businesses, which make up almost 90 per cent of the economy, rose more than economists estimated.
``So far, the US recovery has been driven mainly by manufacturing, so the improvement in the non-manufacturing sector is bolstering investor confidence in the American economy,'' said Mitsushige Akino, who oversees about $US450 million at Tokyo-based Ichiyoshi Investment Management Co.
A gauge of material producers on the MSCI Asia Pacific Index rose 0.7 per cent, the most of 10 industry groups.
BHP Billiton gained 1.2 per cent to $42.16. Yesterday in New York, crude oil for April delivery increased 1.5 per cent to $US80.87 a barrel, the highest settlement since Jan. 11, while in London, a gauge of six metals climbed 1.7 per cent.
Cnooc, Newcrest
Mincor Resources NL, an Australian nickel producer that supplies BHP, surged 3.7 per cent to $1.70. Cnooc Ltd., China's largest offshore oil producer, rose 1.1 per cent to HK$12.38 in Hong Kong.
Newcrest gained 1.8 per cent to $33.55. Gold for April delivery rose to as high as $US1,145.80 an ounce in New York trading, a level not seen since Jan. 15. Futures were recently at $US1,138.40.
In Hong Kong, Standard Chartered, which reported a record full-year profit yesterday, climbed 5 per cent to HK$192.20. Jaspal Bindra, the bank's Asia chief executive officer, said he is ``cautiously optimistic'' about 2010 after the lender had a ``good'' start to the year. Bindra spoke in an interview with Bloomberg television in Hong Kong today.
STX Pan Ocean Co., South Korea's biggest bulk carrier, jumped 2.1 per cent to 12,050 won after the Baltic Dry Index, a measure of shipping rates for commodities, surged 4.3 per cent, the most since Jan. 4. Nippon Yusen K.K., a Japanese shipping line, climbed 3.1 per cent to 335 yen.
Yen appreciation
Japanese automakers fell as a stronger yen threatened to reduce the value of overseas income when converted into their home currency. Toyota Motor Corp. lost 0.9 per cent to 3,390 yen. Bridgestone Corp., the world's largest tiremaker by sales, dropped 1.3 per cent to 1,520 yen.
The yen appreciated to as much as 88.32 per dollar yesterday in New York, the highest level since Dec. 14, from 88.87 at the 3 p.m. close of stock trading in Tokyo yesterday.
Mitsubishi Motors slumped 7.6 per cent to 122 yen. The company and Peugeot, Europe's second-biggest carmaker, said yesterday they ended talks about Peugeot buying a stake in Mitsubishi. A tie-up with Peugeot would have boosted Mitsubishi's capital.
``Given that Japan is a shrinking market, without overseas expansion there's no way Mitsubishi can survive,'' said Mitsuo Shimizu, an analyst at Cosmo Securities Co. in Tokyo. ``Without capital coming in, it may be difficult to accomplish that.''
