HONG KONG: Renewed concerns at unrest in Egypt hit Tokyo shares and sent oil prices higher Thursday, while insurance companies lifted Sydney stocks after a huge cyclone caused less damage than expected.
Most markets in Asia were closed for Lunar New Year holidays.
Tokyo ended 0.25 percent, or 26 points, lower at 10,431.36 after news that anti-government protests in Egypt had turned violent, with clashes between demonstrators and pro-government forces leaving several dead.
The battles erupted after almost a week of rallies against the three-decade rule of President Hosni Mubarak.
Sentiment had improved somewhat after Mubarak said he would stand down at the end of the year but fears rose again as demonstrations turned violent on Wednesday, continuing into Thursday.
The unrest weighed on US stocks late Wednesday, with the Dow closing just 0.02 percent higher as concerns over the wider implications for the Middle East overshadowed better-than-expected private-sector US jobs growth.
Oil continued its march upwards as Egypt sits astride the strategically vital Suez Canal and at the heart of the oil-rich Middle East.
Brent North Sea crude for March delivery soared 88 cents to 103.22 in early afternoon trade in Asia and New York's main futures contract, light sweet crude for March, climbed 65 cents to $91.51.
Ken Hasegawa, energy desk manager at Newedge brokerage in Tokyo, said: "The latest news from Egypt triggered short-covering and fresh buying from funds." He told AFP he expected Brent crude to reach $105 a barrel.
"So far there is no factor to prompt traders to sell. We don't see any sell-out in the market at the moment," he said.
Ric Spooner, a strategist at CMC Markets in Sydney, told Dow Jones Newswires: "The situation in Egypt represents a potential economic risk.
"However, at this stage it is unclear what form any transitional government will take and whether there may be disruption to oil and gas supplies or implications for regional stability."
In Sydney shares rose 0.50 percent, or 24.1 points, to 4,820.6 amid relief that Tropical Cyclone Yasi -- described as one of the biggest cyclones to hit the country -- had caused less damage than expected after slamming into Queensland's coast overnight.
The huge storm did however devastate several towns and cut power to 175,000 homes in a state still reeling from months of catastrophic floods.
Insurance companies were the main gainers, with Suncorp up 3.05 percent.
On forex markets the euro fetched $1.3794 in Tokyo afternoon trade, down from $1.3808 in New York late Wednesday and falling away from a near-three-month high of $1.3862 touched in earlier trading.
The euro traded at 112.62 yen, almost flat from New York late Wednesday. The dollar firmed to 81.63 yen from 81.54 yen.
In other markets:
-- Mumbai rose 1.98 percent, or 358.69 points, to 18,449.31 thanks to bargain-hunting, despite unrest in Egypt and rising crude oil prices.
Indian shares have fallen more than 13 percent so far this year on overseas funds outflows of $1.3 billion.
Auto, metal and property stocks made gains.
India's top property stock DLF rose 7.42 percent, or 16.85 rupees, to 243.95, while leading vehicle maker Tata Motors rose 4.08 percent, or 45.03 rupees, to 1,156.55.
India's largest private aluminium producer Hindalco rose 4.62 percent, or 10.85 rupees, to 245.7.
-- Bangkok rose 0.28 percent, or 2.76 points, to 980.60.
Coal miner Banpu rose 0.8 percent, or 6.00 baht, to 752.00, while energy firm PTT rose 1.00 baht to 345.00.
-- Manila ended 2.52 points lower at 3,888.55.
Philippine Long Distance Telephone was 0.2 percent off at 2,444 pesos and Banco De Oro Unibank rose 0.8 percent to 50.45, while San Miguel gained 6.4 percent to 179.20.
-- Wellington closed flat, edging down 2.41 points, to 3,349.89.
Fletcher Building closed 0.1 percent higher at NZ$7.91 and carpet maker Cavalier added 0.7 percent to NZ$3.10.
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