Asia stocks resume losses, yen hits post-WWII high

HONG KONG: Asian stocks resumed their downward track Thursday as Japan's nuclear crisis cast a shadow over trade and the yen soared to a post-War high.

However, investors pared earlier losses as crews fought to douse an overheating power plant while the Bank of Japan pumped another six trillion yen ($73 billion) into the short-term money market to soothe concerns.

A day after shares regained some of their huge losses of Monday and Tuesday, dealers were back in selling mood as they eyed events in Japan while the US warned citizens living within 50 miles (80 kilometres) of the crippled Japanese Fukushima nuclear plant to evacuate.

The exclusion zone given by the US Nuclear Regulatory Commission (NRC) was wider than the 20 kilometres ordered by Japan and rang alarm bells with investors.

Tokyo ended 1.44 percent, or 131.05 points, lower at 8,962.67, although the index was well off earlier lows that had seen it sink more than four percent.

The index, and especially exporters, was helped by an easing of the yen to 79.14 against the dollar after it surged to 76.52 in earlier trade, its highest since the end of World War Two.

The euro traded at 110.54 yen, compared with 112.89 in late Asian trade on Wednesday.

Dealers said the yen's sharp rise might be at least partly due to Japanese companies repatriating funds to pay for reconstruction but Tokyo laid some of the blame with speculators.

Finance chiefs from the G7 rich nations were set to hold telephone talks on the crisis on Friday Tokyo time, as market talk grew that Tokyo might be preparing measures to rein in the soaring yen.

"There is intensifying market speculation the Bank of Japan will soon intervene to cap support of the yen," said NAB Capital analyst David de Garis.

Hong Kong fell 1.83 percent, or 416.45 points, to 22,284.43 and Taipei closed 0.50 percent, or 41.89 points, lower at 8,282.69.

Shanghai shed 1.14 percent, or 33.50 points, to 2,897.30 with nuclear energy firms hit by news that China's government had suspended approval of new projects in response to the Japan crisis.

However, Sydney pared earlier losses to end flat, edging down just 2.9 points to 4,555.3, although uranium firms were dumped.

Paladin Energy dived 9.5 percent to Aus$3.35 ($3.33) and Energy Resources of Australia, one of the largest uranium producers in the world, shed 6.15 percent to Aus$7.32.

Seoul also closed flat, adding 1.06 points to 1,959.03.

Regional shares dived on Monday and Tuesday -- with the Nikkei losing 16 percent, its heaviest fall in 24 years -- due to the deepening atomic crisis in Japan following Friday's record earthquake and resulting tsunami.

"It was a massive quake at first and the tsunami right after, and then the nuclear crisis. The most scary thing for the market is no one knows what's coming next," KB Investment & Securities analyst Kim Soo-young in Seoul told Dow Jones Newswires.

Crews have been battling all week at the Fukushima power plant to avoid a nuclear meltdown following several explosions and fires.

The Japanese central bank has injected 34 trillion yen into the system this week as it tries to ensure that financial institutions in disaster-hit regions do not run out of funds.

Corporate giants slipped but eased earlier losses, with Toyota closing down 2.2 percent, Sony edging 0.5 percent lower and Canon ending off 3.3 percent.

Tokyo Electric Power (TEPCO), operator of the troubled nuclear power facility, shed 13.35 percent after slumping around 25 percent on each of the past three days, leaving it at about one-third of its value before the disaster struck.

On oil markets New York's main contract, light sweet crude for delivery in April gained 58 cents to $98.56 per barrel and Brent North Sea crude for May was up 12 cents at $110.72.

Gold slipped as dealers cashed in the precious metal, closing at $1,396.20-$1,397.20 an ounce in Hong Kong, down from Wednesday's close of $1,400.00-$1,401.00.

In other markets:

-- Singapore fell 0.95 percent, or 28.12 points, to end at 2,942.88.

DBS Bank was down 0.28 percent to Sg$14.04 and Singapore Airlines lost 1.52 percent to Sg$13.00.

-- Manila fell 1.57 percent, or 61.06 points, to 3,817.38.

Philippine Long Distance Telephone closed down 2.7 percent at 2,014 pesos and SM Investments fell 1.0 percent to 510.50, while Alliance Global lost 2.8 percent to 11.56.

-- Jakarta fell 1.34 percent, or 47.26 points, to 3,484.22.

Telkom ended down 3.6 percent at 6,800 rupiah, Bank Mandiri fell 2.5 percent to 5,950 and Bank Rakyat was off 1.0 percent at 5,050.

-- Kuala Lumpur ended flat, edging down 0.35 points to 1,492.09.

-- Kuala Lumpur closed flat at 1,492.09.

Auto firm Tan Chong slid 1.3 percent to 4.61 ringgit while consrtuction giant Gamuda dropped 1.6 percent to 3.63 and investment holding firm Ta Ann climbed 10.0 percent to 5.48.

-- Wellington closed flat, edging up 2.79 points to 3,329.59.

Air New Zealand surged 4.6 percent to NZ$1.13 and retailer Kathmandu added 4.6 percent to NZ$2.03.