Asian Shares Nudge Up; United Minerals Jumps But JAL Slumps

SINGAPORE -- Asian share markets were a little higher Friday after mild gains on Wall Street. United Minerals jumped in Sydney on a friendly takeover offer from BHP Billiton, though Japan Airlines Corp dropped on concerns about its recovery plan.

Japan's Nikkei 225 was up 0.2% with Australia's S&P/ASX 200 up 0.1% and South Korea's Kospi Composite higher by 0.2%. New Zealand's NZX-50 had gained 0.5%.

"We are being helped by buying catalysts from overseas markets," said Yoshinori Nagano, a senior strategist at Daiwa Asset Management.

Overall trade was subdued before the weekend and amid signs of some fatigue in the market. "The Australian market is up about 2.6% on the week, so it's prone to some profit-taking," said IG Markets institutional dealer Chris Weston.

In Sydney, Commonwealth Bank of Australia was down 0.8% while gold miners fell back further, with Newcrest off 2.3%.

But junior miner United Minerals raced 40% higher after an A$204 million takeover bid from BHP.

Oil-related shares were leading in Japan, with a slightly weaker yen helping exporter stocks like technology plays. Inpex was up 3.0% with Sony up 2.5% and Panasonic up 1.1%.

There wasn't any major help though from the after-hours quarterly earnings reports of U.S. tech majors Google, IBM and Advanced Micro Devices, with Nasdaq futures flat in screen trade. AMD shares fell 4.7% after-hours while IBM dropped 3.7%, even as the firm's third-quarter profit jumped 14% and it lifted its full-year profit target. Google gained 3.0% after-hours with its earnings topping Wall Street expectations.

JAL shares dropped 11.0% in Tokyo, with hedge funds and others spotted selling as the financially-strapped airline continues its work to come up with a viable restructuring plan.

Debt-laden rural services company PGG Wrightson was a standout in New Zealand, gaining 20% after announcing a strategic partnership with China's Agria, under which Agria will become its new cornerstone investor. "The PGG Wrightson news is incredibly positive," said Peter Sigley, an institutional dealer at Goldman Sachs JBwere.

Energy stocks were higher in Seoul, alongside steelmakers, though the recent rapid rise in the Korean won was causing some concern for exporters. Posco was up 1.1% with SK Energy 3.5% higher, while LG Electronics fell 1.7% and Hyundai Motor shed 3.3%.

LG Display fell 3.3% after the flat-panel maker signaled a weaker profit in the current quarter.

In currency markets the euro and Australian dollar remained well-bid against the U.S. dollar, with the Australian dollar rising to US$0.9262, its best level since early August 2008.

Goldman Sachs JBWere upgraded its forecasts and now expects the Australian dollar at US$0.95 in three months, from a previous call of US$0.87. "On virtually every...determinant, the Australian dollar looks set to move higher," it said.

The euro rose to $1.4964, from $1.4920 late in New York, and against the yen it was at Y135.78, from Y135.32, having briefly risen over Y136 for the first time in two months. The U.S. dollar was slightly higher against the yen, at Y90.81 from Y90.70.

Japanese government bond futures were falling with the front-month contract down 0.18 at 138.87 points, given weakness Thursday in U.S. Treasurys.

Spot gold slipped 60 cents from New York levels, to $1,050 a troy ounce.

Front-month Nymex crude oil futures were 37 cents higher at $77.95 a barrel on Globex, adding to a 3.2% gain in New York.

GA Global Markets broker Tony Rosado said oil was poised to break $79 before long, even as supply-demand fundamentals weren't helpful. "The funds have the ball in their court."