Asian markets mixed in quiet holiday trade

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(Agencies)
Updated: 2008-12-26 15:03

HONG KONG -- Asian stock markets were mixed Friday in quiet holiday trade amid new evidence that companies and consumers alike were struggling as the global economy slumps.

In Japan, automakers and other manufacturers slashed their output last month by 8.1 percent, the biggest drop since records were started in 1953, in the face of slowing demand overseas. Production was expected to slide further in the months ahead with an 8 percent fall estimated in December, the government said, aggravating the recession in the world's No. 2 economy.

Major exporters from Toyota Motor Corp. to Sony Corp. have taken a beating since the American economy, a huge buyer of Asian goods, slipped into recession and American consumers began cutting back their spending.

There was more bad news overnight as data showed holiday sales at US retailers shrank between 5.5 percent and 8 percent from a year ago last month, according to a MasterCard Advisors unit that tracks total sales paid during the period. A weak economy and strong winter storms were mostly to blame.

"Sentiment is relatively cautious given the slew of numbers have been pretty poor. On the economic front and the corporate front there's nothing to cheer about," said Song Seng Wun, economist at CIMB-GK in Singapore.

In Japan, the Nikkei 225 stock average advanced 140.02 points, or 1.6 percent, to 8,739.52 as some investors picked up beaten-down shares.

South Korea's Kospi fell 0.6 percent to 1,121.43, while Shanghai's key index lost 0.5 percent to 1,843.56.

Hong Kong and Australian markets were closed, as were those in Britain, Germany and France.

US markets were set to reopen Friday after being closed for the Christmas holiday. Wall Street gained in a shortened session Tuesday, and futures were modestly higher. Dow futures were up 35 points, or 0.4 percent, to 8,423, while S&P futures were up 6.4 points, or 0.75 percent, to 865.

In Japan, automakers rebounded after seeing heavy selling in recent days, with Toyota rising more than 2 percent. China's biggest steel company, Baoshan Iron & Steel, shed 0.8 percent in Shanghai.

In currencies, the dollar traded at 90.37 yen, down from 90.31. The euro rose to $1.4069 from $1.4014.

Oil prices recovered moderately, with light, sweet crude for February delivery adding 83 cents to $36.18 a barrel in Asian trade on the New York Mercantile Exchange by midday in Singapore. The contract on Wednesday fell $3.63 to settle at $35.35.