Asian stocks down, oil prices up on Mideast woes

HONG KONG: Asian shares were mixed Monday, as some markets extended gains made at the end of last week, while concerns over turmoil in the Arab world and higher oil prices continued to hit sentiment.

Tokyo ended 0.92 percent, or 97.33 points, higher at 10,624.09 and Hong Kong closed 1.42 percent, or 325.65 points higher at 23,338.02.

Shanghai closed 0.92 percent, or 26.48 points, higher at 2,905.05.

But Seoul dropped 1.23 percent, or 24.13 points, to 1,939.30 and Sydney was 0.12 percent, or 6.0 points, lower at 4,830.5 before trading was stopped early due to a technical glitch.

Indian shares closed up 0.69 percent, Mumbai's second straight day of gains, on hopes of strong economic growth after the government said it plans to bring down the fiscal deficit to 4.6 percent in the next financial year.

The benchmark 30-share Sensex index closed up 122.49 points at 17,823.4, off the day's high of 18,296.53, after Finance Minister Pranab Mukherjee presented the federal budget.

"The markets rose in a relief rally (after heavy selling last week)," said Alok Churiwala, director of brokerage Churiwala Securities.

India is one of the world's worst performing markets in 2011, down nearly 12 percent this year, on overseas funds sales of nearly $2 billion worth of stock.

The broad advances follow Friday's broad gains after a tough week that saw heavy selling as oil prices soared on the back of violence in the Arab world, which stoked supply concerns.

Libya's Moamer Kadhafi came under further pressure as he lost control of several towns while world leaders condemned his heavy-handed crackdown that has seen hundreds killed and the United Nations impose travel bans on his regime.

In Tunisia, prime minister Mohammed Ghannouchi resigned as security forces clashed with demonstrators in Tunis while Yemen's leader faced calls to end his three-decade rule and the sultanate of Oman was also hit by violence.

In afternoon trade oil was up, with New York's main contract, light sweet crude for delivery in April, gaining $1.62 to $99.50 per barrel.

Brent North Sea crude for April delivery gained $1.84 to $113.98.

"The unrest in the Middle East and fears that the situation will worsen are still supporting oil prices despite news that Saudi Arabia will increase output," said Ong Yi Ling, investment analyst for Phillip Futures in Singapore.

Chinese Premier Wen Jiabao's comments on Sunday that the government would aim for seven percent annual growth over the next five years had little impact on markets in the afternoon.

The new target is lower than China's usual target of eight percent and comes as the country tries to rein in its soaring economy and rising inflation, which it says is key to avoiding social instability.

The economy grew 10.3 percent in 2010.

"The comments (from Wen) suggest further, multi-pronged monetary tightening, more curbs on the real estate market, and a stronger yuan," Credit Agricole said in a note to clients, according to Dow Jones Newswires.

However, Zhou Lin, an analyst from Huatai Securities, said: "I can't see any impact of the number on the market for now" as historically the actual outcomes have mostly outpaced such targets.

And Li Xin, an analyst from China Development Bank Securities said the move had been flagged in advance and factored in by investors.

Seoul's KOSPI index was hurt by nervousness that North Korea may begin a new wave of missile attacks as South Korea and the United States kicked off fresh military exercises.

The euro fell to $1.3737 in Tokyo morning trade from 1.3749 in New York late Friday. The unit was at 112.32 yen compared with 112.25 yen.

The dollar fetched 81.63 yen, slightly down from 81.68 yen.

Gold closed at $1,411.30-$1,412.30 an ounce, up from Friday's close of $1,408.00-$1,409.00.

In other markets:

-- Singapore closed down 0.48 percent, or 14.65 points, at 3,010.51.

Keppel Corp dipped 1.40 percent to Sg$11.26 and SingTel lost 0.34 percent to Sg$2.97.

-- Kuala Lumpur closed up 0.13 percent or 1.98 points, at 1,491.25.

Construction firm SP Setia climbed 1.2 percent to 5.91 ringgit as lender EON Capital rose 2.0 percent to 7.14 and national automaker Proton slid 5.6 percent to 3.86.

-- Jakarta gained 0.78 percent, or 26.82 points, to 3,470.35.

-- Manila rose 0.79 percent, or 29.69 points, to 3,766.73.

Aboitiz Equity rose 17.5 percent to 47.00 pesos and Aboitiz Power gained 3.2 percent to 28.80.

-- Wellington closed 0.20 percent, or 6.61 points, higher at 3,370.52.

New Zealand stock exchange NZX added 5.6 percent to NZ$1.70 and New Zealand Refining gained 3.9 percent to NZ$4.82.

-- Bangkok edged up 0.20 percent, or 2.00 points, to close at 987.91.

Banpu lost 14.00 baht to 726.00, while PTT fell 6.00 baht to 337.00.

-- Taipei was closed for a public holiday.