Asian shares rise, Tokyo down on nuclear fears

HONG KONG: Asian shares mostly gained Thursday on bargain hunting but Tokyo slipped amid uncertainty over contaminated food and water and the ongoing struggle to avoid a meltdown at a stricken nuclear plant.

Japan's Nikkei began the day on a high as traders picked up cheap stocks following Wednesday's late fall caused by news that authorities in the capital had found dangerously high levels of radioactive iodine in the tap water.

However, the index fell back to end the day 0.15 percent, or 14.46 points, lower at 9,435 on reports of more smoke rising from the Fukushima No.1 plant, which was hammered by the deadly March 11 quake and tsunami.

"The rebound from Wednesday is over, and now the market lacks direction, waiting for more information on the nuclear crisis," Yumi Nishimura, deputy general manager of investment strategy at Daiwa Securities, told Dow Jones Newswires.

The market did briefly find positive territory in the afternoon after news that the radioactive iodine levels were now safe, but nervousness soon returned.

Leakages from the Fukushima No.1 complex have found their way into the local environment and vegetation, leading governments including the United States, Hong Kong, Australia and Singapore to ban imports of food from the area.

But regional markets were broadly up following last week's heavy sell-off.

Hong Kong gained 0.77 percent in the afternoon and Shanghai rose 0.10 percent.

Sydney added 1.01 percent, or 47.2 points, to end at 4,699.6 and Seoul gained 1.22 percent, or 24.60 points, to 2,036.78.

On the Nikkei exporters continue to be hurt as they are forced to keep plants closed, halting production and adding to growing concerns about the economic cost of the double tragedy and nuclear crisis.

Tatsunori Kawai, chief strategist at kabu.com Securities, said government estimates that it could cost the nation up $309 billion only accounted for the quake-tsunami and did not include subsequent problems at Fukushima.

The yen remained in a tight range against the dollar after the Group of Seven joint intervention in currency markets on Friday. The Japanese unit was at 81.01 against the greenback, slightly down from 80.93 late Wednesday in New York.

However, the euro fell to 114.12 yen from 114.61 after Portugal's prime minister resigned following parliament's rejection of an austerity package, which could mean Lisbon will need an international bailout.

The loss will deal a blow to the eurozone, which has been hammered by a sovereign debt crisis in which Ireland and Greece have already gone cap-in-hand to the European Union and International Monetary Fund.

The euro also traded at $1.4087, from $1.4080 late Thursday. It had been sitting at $1.4186 ahead of the vote.

On oil markets crude slipped slightly after US data showed a rise in stockpiles, although continuing troubles across the Middle East and North Africa provided support.

New York's main contract, light sweet crude for delivery in May, lost 28 cents to $105.47 per barrel while Brent North Sea crude for May was down 32 cents to $115.23.

Among "the bearish news yesterday was the buildup of inventories data... Crude stockpiles rose 2.1 million barrels last week, which was more than expected," said Phillip Futures analyst Ong Yi Ling in Singapore.

But traders are monitoring the wave of unrest in the oil-rich Middle East, which has seen anti-government protests in Yemen, Bahrain and Syria while Libya is still being hit by UN-backed air strikes, slashing crude exports.

Gold closed at $1,437.00-$1,438.00 an ounce in Hong Kong, up from Wednesday's close of $1,428.00-$1,429.00.

In other markets:

-- Wellington rose 0.34 percent, or 11.46 points, to end at 3,387.25.

Dealers welcomed data showing gross domestic product grew 0.2 percent in the October-December quarter, narrowly avoiding slipping into recession after a contraction in the previous three months.

Officials said performance was hampered by an earthquake in Christchurch in September, which claiming no lives but caused extensive damage.

However, a second quake in the city in February that caused even more destruction and killed an estimated 182 people will likely cripple growth in the first half of 2011, the government said.

Fletcher Building added 1.1 percent to NZ$8.95 but Telecom dipped 0.3 percent to NZ$2.00.

-- Taipei gained 0.37 percent, or 31.32 points, to 8,576.40.

Hon Hai was up 1.46 percent at Tw$104.5 while Taiwan Semiconductor Manufacturing Co added 1.02 percent at Tw$69.4.

-- Manila closed 0.36 percent, or 13.98 points, lower at 3,841.54.

Semirara Mining fell 4.7 percent 216.20 pesos, International Container Terminal was unchanged at 41.00 pesos and Digital Telecommunications was off 2.4 percent at 1.62.