Asian shares mixed, quake fears linger

HONG KONG – Asian shares were mixed Friday in cautious trade ahead of key US jobs data as a weak yen provided support for Japanese exporters, but concerns over the effect of last month’s quake hurt sentiment.

Hong Kong gained 0.10 percent, Sydney was up 0.58 percent and Shanghai rose 0.32 percent while Seoul was flat and Tokyo edged up 0.40 percent in the early afternoon.

As workers struggle to avert a catastrophe at the Fukushima Daiichi nuclear plant that was battered by the March 11 quake-tsunami, dealers looked to its impact on corporate Japan following production halts and rolling blackouts.

The closely watched Tankan survey of business confidence showed an improvement in March but the Bank of Japan said most of the firms that took part submitted their responses before the earthquake.

The central bank said it would release a separate survey on Monday to reflect results after the tragedy, with Tsuyoshi Segawa, an equity strategist at Mizuho Securities, telling Dow Jones Newswires they “are expected to be severe”.

Tokyo Electric Power (TEPCO), which operates the stricken atomic plant, was down 9.65 percent at 421 yen, the company now having lost around 80 percent of its pre-crisis market value.

There was optimism at figures showing the number of first-time claims for unemployment insurance fell to a seasonally adjusted 388,000 last week, from an upwardly revised 394,000 the week before.

The data came a day after a study by payrolls firm ADP showed US companies added 201,000 jobs in March, the third straight month in which more than 200,000 jobs were created.

It also provided a lift for investors ahead of key non-farm payrolls figures later Friday, which will paint a clearer picture of the state of the world’s biggest economy.
Expectations of an interest rate hike by the European Central Bank put upward pressure on the euro after data showed inflation in the region continues to rise.
The euro bought $1.4159 in early Asian trade, up from $1.4155 in New York late Thursday, while it also gained to 118.35 yen from 117.11.
The dollar traded at 83.58 yen compared with 83.20.

“Stronger than expected inflation data affirmed the case for ECB to raise rates in April and increases the possibility for more rate hikes down the road this year,” Action Forex said in a report.

The ECB is due to meet on April 7, and president Jean-Claude Trichet hinted at the beginning of March that the central bank would raise rates at the coming meeting.

Data Thursday showed eurozone March inflation rising to 2.6 percent from 2.4 percent in February, its highest since October 2008 and well above the ECB’s two percent target for a fourth month.

Meanwhile the Wall Street Journal said that the central banks of Malaysia and South Korea had stepped into the currency markets to halt the rise of their currencies against the dollar.

The report comes as a number of Asian nations struggle to halt a huge influx of capital from the West, which they fear could destabilise their economies.
On oil markets the conflict in Libya and hopes for the global economic recovery sent crude to a two-and-a-half-year high.

New York’s main contract, West Texas Intermediate light sweet crude for May delivery rose 54 cents to $107.26 per barrel, surpassing the $107 level last seen in September 2008.

Brent North Sea crude for delivery in May advanced 28 cents to $117.64.

Dealers bought up the black gold on news that forces fighting for strongman Moamer Kadhafi had wrested two ports as well as key oil hub Ras Lanuf from rebel hands while successfully defending another city.

The gains indicated prolonged civil strife in the war-torn oil-exporting nation.

Gold opened at $1,430.80-$1,431.80 an ounce in Hong Kong, up from Thursday’s close of $1,427.50-$1,428.50.