Asia stocks mixed as China tightening fears lingerAsia stocks mixed as China tightening fears linger Updated at: 1607 PST, Friday, March 12, 2010

Asia stocks mixed as China tightening fears linger

Updated at: 1607 PST, Friday, March 12, 2010 HONG KONG: Japanese Prime Minister Yukio Hatoyama's call Friday for a weaker yen boosted sentiment but fears of credit tightening in China lingered in a mixed day for Asian stocks. Hatoyama told a session of parliament that the world's second largest economy was not as strong as the yen's value might suggest and called for "firm steps" to prevent it from strengthening further. After the comments the dollar picked up against the Japanese unit, trading at 90.62 yen in Tokyo from 90.48 in New York late Thursday. The euro was also higher at 124.21 yen from 123.77. The yen surged to 14-year highs against the greenback in November, hitting 86.28 to the dollar at one point. A strong yen hurts the competitiveness of Japanese exporters and erodes their overseas earnings when they are repatriated. The Nikkei finished at its best level since January 21, with the index 0.81 percent, or 86.31 points, higher at 10,751.26. Hatoyama's intervention comes as the government ups pressure on the central bank to take more action to shore up the economy and combat deflation. The market will now focus on a Bank of Japan meeting next week that could herald further moves to boost the economy. Sydney edged 3.9 points higher to 4,818.1. BHP Billiton fell 0.4 percent to 42.85 Australian dollars, Rio Tinto rose 0.5 percent to 75.96 and Newcrest Mining was up 0.9 percent at 34.21. Seoul rose 0.37 percent, or 6.12 points, to 1,662.74. However, Shanghai fell 1.24 percent, or 37.87 points, to 3,013.41 on increasing concern Beijing will further tighten monetary policy to cap the economy's strong growth after figures showed inflation continued to accelerate, The consumer price index rose 2.7 percent year on year in February, up from 1.5 percent in January and higher than a forecast 2.4 percent rise. The government has already ordered banks to increase their capital reserves three times since December -- effectively limiting the amount of money they can lend. "The last time a hike in the reserve requirement ratio was announced on a Friday evening, so investors are remaining on the sidelines in case something similar happens later," Southwest Securities analyst Zhang Gang told Dow Jones Newswires. Hong Kong ended marginally lower, dropping 18.46 points to 21,209.74. Meanwhile China Friday hit back at US President Barack Obama after he called for Beijing to adopt a "market-oriented" exchange rate policy, increasing pressure for a stronger yuan. The United States and the European Union, key trade partners for China, say the leadership has intentionally kept the currency low to boost exports. "We believe the yuan exchange rate issue will not help shrink or increase our trade surpluses and deficits," People's Bank of China vice governor Su Ning said. "We don't agree with politicising the renminbi exchange rate issue." "We also don't agree with a country taking its own problems and having another country solve them." Oil was slightly higher, with New York's main contract, light sweet crude for April delivery, up nine cents to 82.20 dollars a barrel. London's Brent North Sea crude was up eight cents to 80.36 dollars. Gold closed at 1,112.00-1,113.00 US dollars an ounce in Hong Kong, up from Thursday's close of 1,107.00-1,108.00 dollars. In other markets: -- Singapore closed 0.26 percent or 7.45 points higher at 2,881.36. United Overseas Bank rose 18 cents to 18.70 Singapore dollars, Keppel Corp rose 15 cents to 8.83 but Singapore Telecom dipped three cents to 3.14. -- Taipei ended flat, edging down 1.33 points to 7,748.33. Taiwan Semiconductor Manufacturing Co fell 0.98 percent to 60.80 taiwan dollars, while United Microelectronics Corp gained 0.30 percent to 16.75. -- Jakarta lost 0.37 percent, or 10.01 points, to 2,666.51. Profit-taking on recent rally offset news of Indonesia's ratings upgrade by Standard & Poor's. "It's good news, because it confirms the good fundamentals of our economy, but shares are already overbought," a trader said. Astra Agro gained one percent to 24,650 rupiah but Telkom fell 2.3 percent to 8,400. -- Kuala Lumpur lost 0.77 percent, or 10.23 points, to close at 1,311.20. Plantations giant KL Kepong fell 1.7 percent to 16.62 ringgit but national carrier MAS rose 3.2 percent to close at 1.96 ringgit. -- Manila closed 1.68 percent, or 52.65 points, lower at 3,072.91. Jomar Lacson of Campos, Lanuza and Co. said dealers were "reacting to the central bank's withdrawal of emergency liquidity-enhancing measures, which signals they'll soon raise interest rates". On Thursday the bank said it had kept rates unchanged but would phase out from next week "crisis response" measures introduced during the meltdown. Philippine Long Distance Telephone Co shed 4.48 percent to 2,560 pesos, while Universal Robina Corp. lost 3.26 percent to 22.25 pesos. -- Wellington was flat, edging 1.69 points higher to 3,225.14. Telecom fell 0.5 percent to 2.23 New Zealand dollars after a consortium announced plans to build a rival high-speed, submarine, fibre cable linking New Zealand, Australia and the US. Fletcher Building ended up 0.5 percent at 8.15. -- Bangkok closed 1.02 percent, or 7.39 points, higher at 733.34, despite demonstrations in the capital ahead of a mass anti-government rally this weekend. Banpu added 4 baht to finish at 588 baht and PTT Plc rose 3 baht to 240. -- Mumbai closed flat, edging down 1.34 points to 17,166.62. The market ignored industrial output data showing a rise of 16.7 percent in January year on year, broadly in line with forecasts. India's largest vehicle maker Tata Motors fell 1.22 percent or 9.4 rupees to 761.5.