Asian markets were mixed Thursday as the region's two major bourses in Japan and Hong Kong advanced, shrugging off a 5.3 percent plunge in Chinese shares, AP REPORTED. Markets in Hong Kong, Indonesia, South Korea and the Philippines hit records even as other markets sagged. In Hong Kong, the Hang Seng Index added 34.44 points, or 0.2 percent, to 22,252.99, the third straight record closing high. Analysts said the market was likely to consolidate in the near term after it gained 1,670 points since May 31. They added potential credit-tightening measures from China remain an overhang on the market. «Hong Kong stocks need a new slew of positive news from China to break through the strong resistance level of 22,500,» said Y.K. Chan, strategist at Phillip Capital Management (HK) Ltd. Blue chips were mixed. Heavyweight HSBC rose 0.14 percent to HK$143.20 while mobile giant China Mobile (Hong Kong) Ltd. fell 0.1 percent to HK$86.50 on profit-taking activities. China-related banks made further gains on prospects of further strength in the yuan, traders said. China Construction Bank ended up 2.9 percent at HK$5.77. On the Chinese mainland, stocks tumbled amid worries about possible government tightening measures and the concerns about the slew of new share listings. The Shanghai Composite Index fell 5.3 percent to 3,615.87 while the Shenzhen Composite Index of China's smaller, second market plunged 5.8 percent to 1,015.85. Analysts said the lack of apparent support from state-controlled institutional investors for blue chip shares, often viewed as an indication for government policy intentions, was undermining confidence. Declines in heavyweight banks, such as Industrial & Commercial Bank of China, and Baosteel Group suggest that the market is yielding to downward pressure. «People usually have lots of confidence in those government-backed companies. After they begin to drop, the whole market followed,» said Peng Yunliang, a senior analyst at Shanghai Securities. In Tokyo, the Nikkei 225 index climbed 52.76 points, or 0.29 percent, to close at 18,221.48 points. The index has risen for a sixth straight session, gaining 2.09 percent over the period, bringing it near a seven-year high reached June 21. Despite the market's gain, trading volume was thin, and traders said further gains will likely be limited as overseas investors are reluctant to take new positions amid uncertainty ahead of Japan's Upper House elections at the end of the month. But Mitsushige Akino, general manager at Ichiyoshi Asset Management, said the market overall remains upbeat as corporate earnings results for the April-June quarter due later this month will likely be positive, and U.S. markets have already factored in the impact of the subprime-loan sector problems. Gainers included Mitsui O.S.K. Lines Ltd., which rose 1.89 percent to 1,725 yen (US$14.02), and Sony Corp., which climbed 2.38 percent to 6,460 yen (US$52.52). In currencies, the U.S. dollar was trading at 122.65 yen late Thursday, up from 122.61 yen late Wednesday in London. The euro was up US$1.3641 from US$1.3611 in late-morning European trading. U.S. markets were closed Wednesday for the Fourth of July holiday.
