Asian Shares Mixed, Lag Wall Street But Miners Rise Again

SINGAPORE -- Most Asian share markets were only a little higher Tuesday despite a strong performance on Wall Street and even as mining stocks found buyers, with some broad fatigue setting in after recent gains.

Japan's Nikkei 225 was up 0.3% with Australia's S&P/ASX 200 up 0.3% and South Korea's Kospi Composite up 0.2%. New Zealand's NZX-50 was down 0.3%. Dow Jones Industrial Average futures were flat in screen trade.

The region was not mirroring the size of gains in the U.S., where all three major indexes rose to new closing highs on the year, helped by energy and materials firms.

The continued decline in the U.S. dollar - and consequent strength in Asia-Pacific domestic currencies - was causing some concern for exporter-related stocks. "Most exporters may underperform the market," said Yukio Takahashi, a market analyst at Mizuho Securities in Tokyo.

Commodity-related shares were however rising in Tokyo and Sydney after base metals gained Monday, with LME three-month copper hitting 14-month highs in London, rising more than 5.0%. Spot gold also briefly touched a record high of $1,143.30 a troy ounce in electronic trade.

In Japan, Inpex was up 1.4% with Sumitomo Metal Mining up 1.8% and Mitsui & Co rising 1.5%, while in Sydney BHP Billiton was up 1.8%, Fortescue up 0.5% and Macarthur Coal higher by 3.6%.

"As long as U.S. interest rates remain at current low levels, liquidity and dollar selling will continue to support commodity markets," said Mizuho's Takahashi.

Canon shares meanwhile gained 2.1% in Tokyo, after news it would buy Dutch printer maker Oce NV for EUR730 million in cash, with the Japanese office machine maker aiming to grow amid shaky prospects for corporate spending.

Textile maker Daiwabo Holdings though was ask-only after saying Monday it planned to issue 35 million new shares to raise up to Y11.84 billion in order to pay back loans.

Sellers were coming into Australian banks, with Westpac off 0.9% and ANZ down 0.8%.

"We're seeing a continuation of yesterday's theme -- a switch out of the banks into the resources," said Chris Blair, head of retail broking at Patersons in Sydney. "The market's thinking banks aren't great value where they are, with yields a little low and valuations a little high."

Hynix Semiconductor fell 5.0% in Seoul after creditors said they may attempt to sell their collective 28% stake through a block deal if a public auction proved unsuccessful. Last week, Hyosung Corp. withdrew its bid for the controlling stake in Hynix.

New Zealand share investors were closely watching the currency market, with the Kiwi dollar briefly rising over US$0.75 against the U.S. dollar for the first time since late October.

Infratil slipped 1.3% after the infrastructure investor posted a first-half net loss, largely due to significant write-downs on existing assets.

In currency trade the euro was nudging higher against the U.S. dollar and Japanese yen, at $1.4980 from $1.4972 in New York, and Y133.44 from Y133.34, with the U.S. dollar at Y89.10 against the Japanese yen, from Y89.08.

"The main focus in the G3 space is whether the euro can soon push through its 2009 high of $1.5063," said analysts at UBS. "With positioning a lot lighter than a few weeks ago, if the market makes it through the next stopping point could arguably be $1.55."

Lead Japanese government bond futures were 0.35 higher at 139.21 points, but traders expected some resistance around 139.40. "Given the new government's stance on debt issuance remains uncertain, it's difficult for players to keep buying JGBs actively," said Katsutoshi Inadome, an analyst at Mitsubishi UFJ Securities.

Spot gold was down 25 cents from New York levels, at $1,139.15 a troy ounce, though traders said momentum pointed to further gains in the short term. Some were still talking about heavy Comex call option positioning at a strike price of $1,200, which may cause some volatility until its expiry next week.

Front-month Nymex crude oil futures were five cents higher on Globex at $78.95 a barrel, having risen $2.55 or 3.3% in New York.