UPDATE: Asian Shares Mixed; Investors Mull China Data

SINGAPORE -- Asian stock markets were mixed Wednesday as investors digested recent gains and mulled a mixed bag of Chinese data. In Australia, property trusts were surging after Investa Property Group abandoned its plans for an initial public offer.

Wall Street's tepid performance Tuesday provided little impetus for Asia, Jjust 0.2% and the S&P 500 flat.

Japan's Nikkei 225 was up 0.2% but off earlier highs, while South Korea's Kospi Composite had reversed an early rise and was down 0.2%. Hong Kong's Hang Seng was 0.7% higher, while China's Shanghai Composite was down 0.6% and Taiwan's main index was up 0.4%.

The focus in markets turned to a raft of data from China. The country's industrial production rose 16.1% on year in October ahead of September's 13.9% rise and better than the 15.5% forecast by analysts. "China's recovery has extended into the fourth quarter and this momentum looks set to continue into 2010," said RBC Capital Markets senior strategist Brian Jackson.

But consumer and producer prices fell more than anticipated and China's new yuan loans hit their lowest monthly level for this year in October at CNY253 billion, well down from September's CNY516.7 billion. Sharp growth in end-October M1 money supply was also causing jitters.

"The sharp growth in M1 is a dangerous signal because it was far beyond government's previous plan; Beijing is likely to take action... a tightening of monetary measures is likely," said Capital Securities analyst Amy Lin.

Australia's S&P/ASX 200 was 0.6% higher and New Zealand's NZX-50 was off 0.1%. DJIA futures were 31 points higher in screen trade.

The Japanese stock market was lifted by data showing September core machinery orders rose 10.5% from the month before, well above the 3.2% rise tipped by analysts.

"The results are positive, but the data may not be strong enough to lift the index further higher," said Shinichiro Matsushita, market analyst at Daiwa Securities in Tokyo.

Japanese machinery stocks were stronger after the orders data with Fanuc rising 0.9% and Mori Seiki advancing 1.7%.

Japan Airlines surged 5.7% on news the Development Bank of Japan will extend bridge loans to the firm before the month's end, under a rehabilitation framework for the ailing airline operator. The Nikkei reported Wednesday that DBJ would likely provide a line of credit worth about Y100 billion.

"DBJ loans would send a clear message that the government will never let Japan Airlines fail," said SMBC Friend Research Center analyst Mitsuru Miyazaki. While bridge loans should ease the company's financing concerns, "worries remain over whether the rights of existing shareholders will be fully protected," he said.

Australian real estate investment trusts were surging after Investa Property Group spiked plans for an initial public offer of a portfolio of Australian office tower assets. REITs had recently seen investors sell property trusts to fund their participation in the IPO.

Sydney-based Investa had conducted a roadshow to gauge support for a A$1 billion equity raising for a portfolio of seven office towers, according to a person familiar with the presentations. "The Investa float is not proceeding," a spokesman for the company said. "(The company) is not going ahead with an IPO."

Among Australian REITs, GPT Group was up 5.7%, Mirvac added 4.0% and Stockland rose 5.2%.

Hong Kong shares were getting a lift from HSBC's bullish trading update with the bank's shares up 4.2%.

But Korean stocks were moving off early highs in subdued trading. "The Kospi is repeating its recent trading pattern of opening higher and ending lower amid a lack of momentum," said Kwak Joong-bo at Hana Daetoo Securities in Seoul.

Seoul's bulk shipping firms were outperforming though after the Baltic Dry Index breached the 3500 level yesterday; STX Pan Ocean was up 2.3% with Kospi debutant SK C&C extending gains and was recently up 9.5%.

Shipping stocks were also doing well in Taiwan with U-Ming Marine Transport 3.2% higher.

New Zealand shares were weighed by Fletcher Building's 1.1% drop, after somewhat cautious comments by the company at its annual general meeting.

Among other regional markets, Singapore's Straits Times Index was up 0.2% while Malaysia's main index was down 0.2%. Indonesian shares were up 0.4% and Philippine shares were 0.3% higher.

In foreign exchange markets, the U.S. dollar dropped sharply against the yen after the core machinery orders data. That helped risk appetite and stoked demand for the euro as well.

The U.S. dollar was at Y89.54 from Y89.84 in late New York trade Tuesday, the euro was at $1.4983 from $1.4985. The euro got an initial boost against the yen as the raft of China's October economic data bolstered risk appetite. But the single currency failed to sustain the gains and fell back to trade at Y134.20 from Y134.58.

The lead December Japanese government bond futures contract was up 0.15 point at 137.70, tracking the rise in U.S. Treasurys Tuesday, though the market was cautious ahead of a five-year JGB tender Thursday and following the stronger-than-expected machinery orders data.

Spot gold was at $1,106.65 per troy ounce, up $0.85 from the New York close. December Nymex crude oil futures were up five cents at $79.10 per barrel, after settling 38 cents lower Tuesday.