Asian markets show mixed trend
Some bourses advanced early in the session on reassurances from Fed chief.
HONG KONG: Asian shares were mixed Tuesday on a lack of direction from Wall Street but Tokyo hit a 32-month high on hopes for new easing even after giving up early gains as the yen rebounded.
Some bourses advanced early in the session on reassurances from Fed chief Ben Bernanke that quantitative easing was set to continue in the United States despite divisions at a Fed meeting, only to lose ground later in the day.
The Japanese currency, which has fallen in recent weeks as new Prime Minister Shinzo Abe came to power vowing to kick-start the economy, strengthened after Japan s economy minister said a weak yen could hurt consumers.
Tokyo put on 0.72 percent, or 77.51 points, to 10,879.08 -- its highest level since April 30, 2010 -- and Shanghai added 0.60 percent in afternoon trade. But Sydney closed flat, edging down 3.1 points to 4,716.6, Hong Kong lost 0.26 percent in the afternoon and Seoul was off 1.16 percent, or 23.30 points, to 1,983.74, led by falls in technology stocks due to a stronger won.
The yen slipped earlier in the session as the Bank of Japan governor called for "aggressive" easing to lift the country s moribund economy, fuelling speculation the central bank could launch new policy measures after a meeting next week.
The BoJ has been under heavy pressure from Abe s government to adopt an annual two-percent inflation target to fight chronic deflation that has haunted the world s third-largest economy for years.
Easing measures tend to weigh on the yen, and a weaker Japanese unit boosts the country s exporters by making their products more competitive overseas and increasing the value of repatriated foreign income. But Economy Minister Akira Amari warned later that the decline in the yen would make imports more expensive.
A weak yen "might help exports, but it could also have negative effects on the lives of the public," he told a regular Tokyo press briefing.
The dollar -- which changed hands at 89.56 yen in morning trade and 89.45 yen in New York on Monday -- dropped to 88.78 yen after Amari s comments.
His remarks also helped send the euro lower to 118.50 yen from 119.93 yen Tuesday morning and 119.65 yen in New York. Against the dollar, the euro dipped to $1.3345 from $1.3376 in US trading.
The fall in the yen pared back some of Tokyo s gains -- it had earlier been up more than 1.2 percent. There was a note of relief on markets after US Federal Reserve chief Bernanke indicated on Monday, after Asian markets had closed, that the central bank s latest round of quantitative easing would continue, dealers said.
He told an audience at the University of Michigan that "while we ve made some progress there is still quite a way to go", in comments reported by Dow Jones Newswires. It came after minutes from the December meeting of Fed policymakers showed they were divided over how long the central bank should continue its $85-billion-a-month bond-buying programme.
Asian traders were also looking ahead to fourth quarter Chinese growth data due to be released on Friday, which analysts hope will confirm that the world s number two economy is picking up following a slowdown.
There was no clear lead from Wall Street, with the Dow Jones Industrial Average gaining 0.14 percent, but the broad-based S&P 500 falling 0.09 percent and the Nasdaq Composite shedding 0.26 percent.
Oil prices fell. New York s main contract, light sweet crude for delivery in February, slipped 32 cents to $93.82 a barrel in the afternoon and Brent North Sea crude for February delivery dipped 23 cents to $111.65.
Gold was at $1,672.12 at 0710 GMT compared with $1,668.39 late Monday.
