Asia Roundup: Mixed in cautious trading

HONG KONG: Asian markets were mixed yesterday as dealers bought back cheap stocks after a week of heavy selling, although trading remained cautious amid fears of a debt default by the US.

The dollar was pressured after another agency warned of a downgrade for Washington's credit rating, although it was supported by comments from the Fed chief that the bank was not ready for a new round of monetary easing.

Tokyo's Nikkei 225 Index gained 0.39 per cent, or 38.35 points, to 9,974.47.

The Nikkei was supported as upbeat US retail and jobs data and stellar Google earnings on Thursday raised expectations for a robust US earnings season, said Hideyuki Ishiguro, a strategist at Okasan Securities.

Shanghai's composite index rose 0.35 per cent, or 9.73 points, to 2,820.17.

However, dealers said the gains were limited due to lingering fears over inflation, which hit a three-year high of 6.4 per cent last month.

"The index may lack strong upward momentum in the short run as liquidity conditions haven't improved significantly and there is little indication that new money is flowing into the stock market," Shenyin Wanguo Securities analyst Li Xiaoxuan told Dow Jones Newswires.

Sydney closed 0.38 per cent, or 17.2 points, lower at 4,473.5 .

Mining giant BHP Billiton fell 1.63 per cent after it announced it was buying US firm Petrohawk Energy in a deal with a total value of US$15.1 billion.

Seoul added 0.71 per cent, or 15.13 points, to 2,145.20.

In other markets:

* Taipei rose 1.10 per cent, or 93.56 points, to 8,574.91.

* Manila rose 0.80 per cent, or 35.19 points, to 4,458.74.

* Jakarta rose 0.64 per cent, or 25.56 points, to 4,023.20.

* Mumbai fell 0.30 per cent in rangebound trade. The benchmark 30-share Sensex index ended down 56.28 points to 18,561.9.Bangkok was closed for a public holiday. - AFP