Asian Stocks Mixed Amid Greek Worries

(RTTNews) - Asian stocks ended mixed on Wednesday, with Chinese shares hitting fresh seven-year highs on hopes for further stimulus, while Japanese shares succumbed to selling pressure in the wake of a firmer yen. Traders continued to fret about falling oil prices and the likelihood of a Greek exit from the Eurozone after bailout negotiations between Greece and its international lenders ended in Brussels without new reform plans being agreed.

Chinese stocks rose sharply as mixed economic readings reinforced calls for further policy easing. The benchmark Shanghai Composite index climbed 62.40 points or 1.66 percent to 3,810.29, a fresh seven-year high, while Hong Kong's Hang Seng index closed up 0.73 percent at 25,082.75. Mainland banks, however, ended on a subdued note after China said it would introduce on May 1 a program to insure bank deposits.

Activity in China's vast manufacturing sector expanded for the first time since December in March, government data showed, easing fears of a slowdown in growth. The manufacturing Purchasing Managers' Index rose to 50.1 last month from 49.9 in February. However, the final HSBC/Market China manufacturing PMI fell to 49.6 in March from 50.7 in February, making a case for more stimulus.

Japanese shares lost further ground, with a stronger yen and a disappointing business survey weighing on investor sentiment. The benchmark Nikkei average fell 172.15 points or 0.90 percent to 19,034.84, while the broader Topix index shed 0.92 percent to close at 1,528.99. The Nikkei index fell as much as 1.4 percent earlier in the day. Among the prominent decliners, Mitsubishi Motors, Sumitomo Metal Mining and Nissan Chemical Industries fell more than 3 percent each.

ABC-Mart tumbled 3.4 percent on a Nikkei report that the shoe-store operator will likely report a 17 percent increase in group operating profit for the year ended February. Mizuho Financial Group eased 0.2 percent and Sumitomo Mitsui Financial Group slid 0.3 percent, while Mitsubishi UFJ Financial Group, Japan's largest bank, advanced 0.7 percent. Citigroup said that it would sell its Japanese credit card business to Sumitomo Mitsui Trust Bank by the end of 2015 for an undisclosed amount.

Sentiment among Japan's big manufacturers held steady in the first quarter, but both manufacturers and non-manufacturers expect conditions to worsen slightly in the coming three months, the closely-watched Tankan business survey showed. The large manufacturers' index came in with a score of 12, missing forecasts for 14, but unchanged from the third quarter. Separately, a survey by Markit Economics showed that its final manufacturing PMI dropped to 50.3 in March, just below the preliminary reading of 50.4 and below 51.6 in February.

Australian shares fell as weak commodity prices drove mining and energy stocks lower. The benchmark index S&P/ASX 200 shed 0.52 percent to close at 5,860.8. BHP Billiton, Rio Tinto and Fortescue Metals Group lost 1-3 percent after iron ore prices fell to fresh seven-year lows overnight amid a widening supply glut and fears about demand from top consumer China.

Gold miner Newcrest Mining fell 1.7 percent. Gold prices edged higher in Asian deals after falling for a second straight month in March, pressured by overall strength in the dollar and amid bets that the Federal Reserve is on course to raise interest rates this year.

The big four banks closed down between 0.1 percent and 0.5 percent. In the oil space, Woodside Petroleum, Oil Search and Santos fell 2-3 percent. Oil prices fell on Wednesday on expectations a nuclear deal between Iran and six world powers would raise the global glut in crude.

Vitamins maker Blackmores declined 0.7 percent on profit taking after climbing 11 percent yesterday. Shares of Lend Lease Group rose 0.3 percent. The construction giant has joined hands with a global investment partner to buy and develop a large urban regenerate site in Singapore.

On the economic front, approvals for the construction of new homes fell 3.2 percent in February from the previous month after jumping to a fresh record in January, official data showed. Economists had predicted a 4 percent fall in approvals during the month.

Separately, the latest survey from the Australian Industry Group revealed that the manufacturing sector in Australia continued to contract in March, albeit at a slower pace, with a Performance of Manufacturing Index score of 46.3.

Seoul shares fell as weak data prompted investors to lock in some profits after recent gains. The benchmark Kospi average dropped 0.62 percent to 2,028.45. The manufacturing sector in South Korea slid into contraction in March, the latest purchasing managers' index from HSBC showed with a score of 49.2, down sharply from 51.1 in February and representing a four-month low.

Another report showed that the consumer price index rose just 0.4 percent year-over-year in March, remaining below 1.0 percent for the fourth straight month and fueling concerns of deflation. The March reading is the lowest since July 1999. The South Korean won rose against the dollar after a government report revealed the country's trade surplus reached a new monthly high in March despite a fall in exports.

New Zealand shares ended marginally higher despite weak global cues. The benchmark NZX-50 index rose 1.60 points or 0.03 percent to 5,835.58. A2 Milk Co gained 3.6 percent, extending Tuesday's 12 percent rally, after shares of the milk marketing company debuted on the ASX. Spark New Zealand also rose 3 percent, extending the previous session's gains, while Xero, Freightways and Kathmandu Holdings all fell over 2 percent.

Elsewhere, Singapore's Straits Times index was little changed and the benchmark indexes in Indonesia, Malaysia and Taiwan were down between 0.2 percent and 1 percent, while India's Sensex was rising 0.6 percent ahead of a long weekend.

The manufacturing sector in Indonesia continued to contract in March, albeit at a faster pace than in the previous month, the latest survey from Markit Economics showed, with a PMI score of 46.4. The Taiwan PMI posted at 51.0 in March, down from 52.1 in February.

U.S. stocks fell overnight, giving back most of Monday's gains, as energy and healthcare stocks retreated and investors digested hawkish comments from Federal Reserve Bank of Richmond President Jeffrey Lacker making a case for the Fed to raise interest rates as early as June.

Economic reports were mixed, with consumer confidence rebounding strongly in March and house prices appreciating at a faster pace in the year ended January, while business activity in the Chicago area shrank for a second month in March. The Dow dropped 1.1 percent, while the tech-heavy Nasdaq and the S&P 500 slid about 0.9 percent each.