HONG KONG: Asian shares were mixed on Friday as traders took a breather after the previous day's huge gains while awaiting the release of US jobs figures later in the day and a crucial European summit next week.
Tokyo gained 0.18 percent by the break and Sydney was 0.43 percent higher, while Hong Kong slipped 0.22 percent, Shanghai fell 0.77 percent and Seoul lost 0.16 percent.
Regional markets soared Thursday after the central banks of United States, the eurozone, Britain, Japan, Canada and Switzerland cut the cost of providing dollars to banks, providing more liquidity to financial markets.
The move came as European banks struggle to find cash on the markets due to concerns over the eurozone debt crisis, which is threatening Italy, Spain and even France.
However, Chinese figures showing manufacturing contracted for the first time in almost three years highlighted the fragile state of the global economy, while investors are still waiting for a comprehensive plan from Europe's leaders to tackle their woes.
"The confidence boost from central bank action came at a right time, but it won't last unless there is follow up from the politicians in getting the eurozone's fiscal house in order," said ANZ Bank senior economist Khoon Goh in Wellington.
"This makes the December 9 EU leaders' summit a key focus for markets," he told Dow Jones Newswires.
"Failure there mean (Wednesday's) coordinated central bank action would only be akin to a sugar pill, and its effects will have worn out by then."
On Thursday French President Nicolas Sarkozy said he and German Chancellor Angela Merkel would push at next week's summit for a new European Union treaty to impose tough budgetary discipline.
As the euro enters what many see as a make-or-break period, Sarkozy said: "Europe will have to make crucial choices in the weeks to come.
"Europe is not a choice, it is a necessity, but it needs to be rethought, refounded."
"We must confront with total solidarity those who doubt the stability of the euro and speculate on its break-up," he declared.
And in Brussels the European Central Bank head Mario Draghi reaffirmed his position that it will not act as lender of last resort for struggling eurozone countries but left the door open to other measures.
He told European lawmakers that its only role was to ensure price stability and not to create liquidity or subsidise governments.
But he implied the ECB could do more if eurozone heads adopt a pact to avoid another crisis.
He hinted the pact could also be the means for opening the way to other ECB action, saying "other elements might follow but the sequencing matters."
Asian investors were also awaiting the release Friday of US November non-farm payroll data for an indication of the state of the world's biggest economy.
While it is expected to show the unemployment rate stuck at nine percent, there is some confidence after private sector jobs increased 206,000 from the previous month.
Sydney was unmoved by Standard & Poor's decision to downgrade the credit ratings of the big four Australian banks as part of changes to the way it assesses risk.
Westpac Banking Corporation, Commonwealth Bank of Australia, ANZ Banking Group and National Australia Bank all had their issuer credit ratings downgraded by one notch from AA to AA minus.
The move was widely expected and comes after S&P said it was revisiting ratings on 37 of the world's largest banks as part of "applying its new ratings criteria for banks".
Earlier in the week, it downgraded the ratings of major US banks, including Citigroup, Goldman Sachs, Wells Fargo, JPMorgan Chase, Morgan Stanley and Bank of America.
In Sydney Commonwealth Bank of Australia rose one percent after saying it does not expect any material impact on its funding plans, while National Australia Bank tacked on 0.3 percent.
On currency markets the euro held on to its gains that were stoked by the central banks' move on Wednesday.
In Tokyo trade the common unit bought $1.3466 and 104.84 yen in early Asian trade, compared with $1.3461 and 104.56 yen in New York late Thursday.
The dollar edged up to 77.84 yen from 77.66 yen.
New York's main oil contract, light sweet crude for delivery in January, fell 12 cents to $100.08 per barrel.
Brent North Sea crude for January delivery added eight cents to $109.07.
Gold was trading at $1,741.50 an ounce at 0200 GMT, from $1,750.10 late Thursday.
Comments
Comments are closed for this article.