Choppy moves for Asia

Investors eye slightly negative cues from overnight trades and renewed worries on European debt crisis

Asian markets ended mixed, extending its recent trend of choppy moves as the investors eyed slightly negative cues from overnight trades and renewed worries on the European debt crisis kept the sentiments uncertain. Though the select indices ended up, bearing Hong Kong, none of the other markets logged sizeable gains. In overnight moves, the US stocks ended moderately lower, as a slightly weak retail sales led to some bearish moves. The Dow dropped 41.55 points or 0.3 percent to 12,226.64. On the economic front, the Commerce Department released a report showing that retail sales rose 0.3 percent in January.

The stock markets in Japan closed in green, extending gains for the third successive day on optimism about the local economic recovery and weaker yet supported overall sentiments. The benchmark Nikkei 225 Index added 61.62 points, or 0.6%, to close at 10,808.29. On the economic front, a report released by the Ministry of Economy, Trade and Industry revealed that an index measuring tertiary industry activity in in Japan was down a seasonally adjusted 0.8 percent in December compared to the previous month, standing at 97.7. However, markets still eyed the recent upbeat forecasts about the economy from the central bank.

The Australian stocks closed almost unchanged after the recent gains on weak cues from Wall Street and broad based sell off in major mining stocks. The losses were curtailed as a leading indicator of the Australian economy picked up in growth for the first time since March last year. The Westpac-Melbourne Institute leading index, which indicates the likely pace of economic activity three to nine months into the future, was 4.2% higher on an annualized basis in December, after advancing 3.6% in the previous month. On a month-over-month basis, the leading index rose 0.8% in December to 280.7. The coincident index, which is an indicator of current economic conditions also rose 0.3% on a monthly basis. The benchmark S&P/ASX200 Index dropped 0.80 points to close at 4,930.80 points.

In China, stocks moved higher, maintaining the latest buoyancy as the moderation in the recent inflation numbers kept the buyers interested. The benchmark Shanghai Composite Index added 24.95 points, or 0.86% to end at 2,924.19. Steel stocks led the gainers as prices of steel have risen in cities such as Shanghai, Wuhan and Guangzhou after the Chinese Spring Festival holiday, boosted by reports of government plans to build 10 million units of affordable housing this year.

In Mumbai, the stocks gained for a fourth day with decent gains emerged in reality, metals and infrastructure majors. At the close, the benchmark 30-share index, BSE Sensex added 48.39 points or 0.26% at 18,322.19 by the close. The market slipped into the red after initial small gains. The market soon regained positive zone. The Sensex moved between the positive and negative terrain in morning trade. The market swung between gains and losses in choppy mid-morning trade. The market recovered after hitting a fresh intraday low in early afternoon trade. The market struck a fresh intraday high in afternoon trade. It regained strength after slipping into the red for a brief period from the day's high in mid-afternoon trade.

In other markets, the HangSeng Index In Hong Kong gained 1.12%, the Strait Times Index In Singapore edged higher by 0.46% while KOSPI Index in South Korea lost more than 1%%. Gold soared in afternoon trades, adding massive gains as the buying interest picked up and made the commodity extend its run from a four month lows. The US dollar remained mixed, hovering above 1.3500 after hitting its three and half week highs earlier in the week. The commodities witnessed steady moves with COMEX Gold futures quoting at $1375.30, up $1.2 per ounce on the day after testing one month highs near $1380 earlier.