Asian markets were mixed Wednesday as regional news outweighed the impact of an overnight decline on Wall Street. Tokyo and most other major markets advanced, while losses in telecoms shares pulled Hong Kong and mainland Chinese shares lower.
China's benchmark Shanghai Composite Index fell 1.9 percent to 3,369.91, while Hong Kong's blue chip Hang Seng Index dropped 1 percent to 24,123.25, as investors held back ahead of the release of U.S. employment data Friday.
"We are cautious about the U.S. market's performance in June, with investors turning their focus back onto weak economic data and the credit crisis," said ICEA Securities strategist Ernie Hon.
DBS Group Research said it expects the U.S. unemployment rate in April to edge up to 5.1 percent from 5 percent the previous month.
India's Sensex tumbled 2.8 percent to 15,514.79 amid news that the government was raising fuel prices. India sets retail gasoline and cooking oil prices, and the hike is meant to help cut losses at state-run oil companies, which have been unable to pass on to consumers the surge in global crude prices.
Tokyo's benchmark Nikkei 225 index gained 1.6 percent to 14,435.57 on buying of export-related shares due to the yen's weakness, which makes Japanese goods more competitive overseas.
"In particular, investors chased gains in the auto sector," said Yutaka Miura, a senior strategist at Shinko Securities Co.
Toyota Motor Corp. gained 3.2 percent while rival Honda Motor Co. jumped 8.6 percent. Sony Corp. rose 2.8 percent.
Shares were mixed in other markets. The Korea Composite Stock Price Index, or Kospi, gained 0.8 percent to 1,833.81, while bargain-hunting pushed Taiwan shares up 0.6 percent to 8,627.80.
In Australia, the benchmark S&P/ASX 200 edged 0.2 percent higher to 5,584.50 in choppy trading after hitting a five-week low as financial shares rallied.
Westpac rose 1.3 percent and Macquarie Group advanced 2.9 percent.
Analysts said the announcement that first quarter economic growth expanded 0.6 percent, versus market expectations of a 0.2 percent rise, had little impact on share prices.
Mainland Chinese telecoms companies extended losses as investors cashed in on gains over the past few weeks ahead of a major industry restructuring, details of which were announced Monday.
China United Telecommunications tumbled 8.9 percent to 8.74 yuan, computer and telecom services provider Bright Oceans Inter-Telecom lost 7.9 percent to 14.92 yuan and equipment maker Wuhan Yangtze Communications shed 6.4 percent to 9.58 yuan.
"Early investor enthusiasm for telecom firms immediately fizzled out after the sector's overhaul was announced, reflecting the broader stock market's gloom," said Wu Feng, an analyst at TX investment.
In currencies, the yen stood around 105.12 to the U.S. dollar midafternoon Wednesday in Tokyo, up from 105.10 in New York late Tuesday. The euro was also almost flat against the greenback at US$1.5554.
In Shanghai, the U.S. dollar was at 6.9440 yuan late Wednesday on the over-the-counter market, up from its close Tuesday of 6.9250 yuan.
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