CANBERA (dpa-AFX) - Asian stocks swung between gains and losses before ending on a mixed note on Wednesday after U.S. Federal Reserve chairman Ben Bernanke gave no hints that further stimulus was on the cards.
The Federal Reserve chief offered a gloomy view of the economy's prospects and warned of another recession and fewer jobs in 2013, but resisted demands for additional quantitative easing. Notwithstanding the disappointment, investors still retain some hope that he may give clues to new bond purchases program during his second testimony in front of U.S. lawmakers tonight.
Tokyo stocks fell, with short covering in battered export-linked shares helping limit the downside. Canon and Honda Motor ended up about 0.6 percent and 0.3 percent, respectively, while Sony edged up 0.1 percent.
Shares of Komatsu lost 2.1 percent on concerns about the Chinese economy after Shanghai shares fell to a three-year low yesterday. The Nikkei average ended down 28 points or 0.32 percent at 8,727, while the broader Topix index slid 0.4 percent, extending declines for the ninth consecutive session.
Hokuriku Electric Power plunged 21 percent and Kansai Electric Power tumbled 6.3 percent after seismologists warned that they may be sitting on active earthquake fault lines. Heavyweight Softbank retreated 3.2 percent on profit taking following recent sharp gains. Retailer Uny plunged almost 10 percent on equity dilution worries. Realtor Mitsui Fudoson rose 2 percent on a Nikkei report that the government could remove a barrier to foreign property ownership by Japan's REITs.
China's Shanghai Composite index rose 0.4 percent on expectations that the government will announce fresh policies to support growth after the upcoming central economic committee meeting, which is expected to take place in late July. Hong Kong's Hang Seng index fell 1.1 percent, dragged down by mainland property developers, as data from private companies showing a pickup in the housing market in June lessened the prospects of any policy easing.
Australian stocks snapped a three-day rally, as resource stocks came under selling pressure despite a positive overnight lead from Wall Street. The benchmark S&P/ASX 200 slid 0.42 percent, while broader All Ordinaries index eased 0.45 percent. BHP Billiton lost 2 percent after the release of its quarterly production report, which showed a 15 percent rise in iron ore output in the June quarter. Rio Tinto, smaller rival Fortescue and gold miner Newcrest fell 3-4 percent.
In the banking sector, Commonwealth rose 0.6 percent after it put a pay freeze on the base salaries of around 400 its senior staff in a bid to cut costs and prevent job losses. Westpac and ANZ rose about 0.4 percent each, while NAB edged up 0.3 percent.
Investment bank Macquarie Group retreated 2.4 percent. Retailer Wesfarmer edged up 0.1 percent after warning of wage pressure. Ariline Qantas ended flat after officially launching its online accommodation booking website, Hooroo.
South Korea's Kospi average fell 1.5 percent, with tech stocks pacing the declines, after chipmaker Intel reduced its 2012 revenue growth forecast to about 3-5 percent from a prior forecast of 'high single-digit growth'. Shares of SK Hynix plunged 4.9 percent.
Banks also lost ground, with Woori Finance Holdings and Hana Financial losing about 3 percent each after the nation's antitrust watchdog launched a probe into the country's top four commercial banks on suspicions that lenders colluded to rig rates on certificate of deposits.
Economy-sensitive shipbuilders such as Daewoo Shipbuilding and Samsung Heavy Industries slumped about 5 percent each on disappointment over the lack of a clear signal from the Fed to launch another round of bond purchases.
New Zealand shares rose modestly, led by Telecom, Chorus and Sky City after Bernanke's address to Congress yesterday gave mixed signals about efforts to support the sluggish U.S. growth. The benchmark NZX-50 index rose 0.15 percent. Telecom, the biggest company on the exchange, gained 2.2 percent, its demerged infrastructure arm Chorus added a percent and Sky City Entertainment Group ended 0.9 percent higher.
Chemicals and resins manufacturer Nuplex Industries rose 2.4 percent on expectations it would benefit from the government procurement program in the rebuild of Christchurch. Fletcher Building, the nation's largest construction firm, fell 0.7 percent amid criticism earlier this week from the Council of Trade Unions on the Christchurch rebuilding process. Xero fell 2.6 percent and Diligent Board Member Services lost a percent, as investors took some profits off the table following the previous session's sharp gains.
Elsewhere, India's benchmark Sensex was up 0.4 percent and Malaysia's KLSE Composite rose 0.3 percent, while Indonesia's Jakarta Composite index was down 0.2 percent, Singapore's Straits Times index was losing 0.1 percent and the Taiwan Weighted average fell 1.1 percent.
On Wall Street, stocks rose notably overnight, as investors reacted positively to the latest batch of earnings news from Coca-Cola and Goldman Sachs as well as some upbeat industrial production and homebuilder confidence data. The Dow rose 0.6 percent, the tech-heavy Nasdaq gained half a percent and the S&P 500 advanced 0.7 percent.
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