UPDATE: Asian Shares Mixed; Tech Stocks Helped By Dell

SINGAPORE -- Asian share markets were mixed Friday as weakness in China's stock markets continued to hurt investor sentiment despite mild gains on Wall Street. Technology stocks were higher in Seoul and Taipei after reassuring comments on the PC sector's outlook from computer maker Dell.

Japan's Nikkei was up 0.2%, Australia's S&P/ASX 20 was up 0.4%, while South Korea's Kospi Composite gained 0.3% and Taiwan's main index was 1.7% higher. But Hong Kong's Hang Seng Index fell 0.5% and Dow Jones Industrial Average futures were seven points lower in screen trade.

"As profit-taking kicked in yesterday, positive external cues like U.S. stocks and crude futures can more easily lift the market," said Mizuho Securities market analyst Yukio Takahashi in Tokyo.

Still, gains for the Tokyo stock market were limited by caution before Sunday's Lower House elections in Japan, in an absence of other domestic cues, said Yumi Nishimura, a market analyst at Daiwa Securities SMBC. Though a victory for the opposition Democratic Party of Japan was widely expected and priced into stocks, players were watching for details from the election outcome, she added.

Front-month Nymex crude futures rose $1.06 in New York and were up another 18 cents at $72.67 a barrel in electronic trade in Asia, helping energy-related stocks. In Tokyo, Inpex gained 1.5%, while Australia's Woodside was up 1.3%.

"Oil (inventories) are still at very high levels but improving demand amid continued supply tightness should accelerate the pace of erosion of the inventory overhang, lending support to prices," said Barclays Capital.

The Shanghai Composite Index was 2.4% lower, while the Shenzhen Index fell 2.3% on concerns that there could be more large-scale fund-raising activity, after Bank of China president Li Lihui late Thursday said the bank may issue new shares to boost its capital base.

"Recent equity fund-raising announcements from large companies, and a slew of listings of small- and medium-sized enterprises will pressure the market in the medium to longer term," said Capital Financial Management analyst Jacky Zhang.

In Japan, All Nippon Airways gained 1.8% after Boeing said it would make its inaugural test flight for the 787 Dreamliner at the end of the year and deliver its first plane at the end of 2010. Analysts said this eased some uncertainty about the timeline for the Dreamliners.

In Korea, tech shares were broadly higher with Samsung Electronics up 0.9% and Hynix up 1.9%. After-hours in the U.S., Dell said its quarterly profit fell 23% as it continued to be squeezed by depressed corporate spending and plunging PC prices, but executives said they were seeing signs the PC industry was beginning to recover. Dell gained 3.2% in the U.S. in late trading.

Tech shares were also higher in Taiwan with Quanta Computer 3.0% higher and Compal Electronics 2.7%. Acer was up 3.4% after posting second-quarter net profits that were largely in line with expectations.

In Australia, Sims Metal Management was down 3.3% while Caltex fell 7.1%, with news of big dividend cuts from both companies.

There was another China/Australia deal on the resources front, with Aquila Resources up 8.0% on news it had entered into a strategic cooperation agreement with China's largest steel mill, Baosteel Group Corp, to fast track developments of its iron ore, coal and manganese projects. Baosteel would invest up to A$285.6 million in Aquila via a placement of up to 43.95 million shares at A$6.50 each, to give it a 15% stake.

Brambles rose 1.6% after an Australian Financial Review report it had been approached with an offer to merge with Paul Little's Toll Holdings. Toll was up 3.7%.

In Hong Kong, BOC Hong Kong (Holdings) Ltd reported a 5.6% fall in its first-half net profit at HK$6.69 billion but the stock gained 4.0% as the result beat expectations.

In New Zealand, Auckland Airport rose 2.9% after its earnings report. "We've had enough disappointing results in New Zealand, so it's good to see there were no nasty surprises in Auckland Airport's earnings," said Dave Schaper, an adviser at Forsyth Barr.

Malaysian shares fell 0.3%, Philippine shares eased 0.2%, Indonesian shares were 0.4% higher and Singapore's Straits Times Index was down 0.1%. Thailand's headline stock index was 0.1% higher.

In foreign exchange markets the euro was at Y134.55 from Y134.22 in New York, and at $1.4358, from $1.4362. The U.S. dollar was at Y93.70, from Y93.50. Traders in Tokyo said Japanese importers were buying both the U.S. dollar and the euro against the yen, but the market was otherwise fairly quiet.

Japanese government bonds were slightly lower, down 0.02 points at 139.04 points. JGBs were not moving much ahead as investors looks to Sunday's elections.

The market "appears to be expecting a more realistic and responsible approach to the handling of public finances, as there will presumably be less of a need to pander to various constituents," said Barclays Capital chief strategist Chotaro Morita.

Whether or not the DPJ (if it wins the elections as expected) can materialize "smooth formulation of supportive policy" and "realistic management of public finances" may not be immediately evident from poll results, though that should start to be discounted around Sep. 14, when the new administration is formed, added Morita.

LME metals were higher, with three-month copper up $140 from the London kerb at $6,410 a metric ton, aided by a rise in the euro in late U.S. trade. Spot gold was at $949.10 per troy ounce, up 90 cents from the New York close.