UPDATE: Asian Shares Mixed; Tech Cos Track US Peers Higher

SINGAPORE -- Asian stock markets were mixed Monday as investors remained cautious before a string of U.S. earnings reports this week. Technology stocks in the region were higher, tracking gains for U.S. tech heavyweights.

"Markets are focussed on the earnings season out of the U.S.," said Macquarie Equities adviser Brad Gordon. "This will provide the next leg of leads for all markets and investors are keenly looking out for the results."

South Korea's Kospi Composite was down 0.8%, Australia's S&P/ASX 200 was 0.2% lower while New Zealand's NZX-50 was up 0.3%. China's Shanghai Composite Index was flat and Hong Kong's Hang Seng Index slipped 0.1% while Taiwan shares were up 0.4%. Japan markets were closed for Health-Sports Day.

The Industrial Average futures contract was four points lower in screen trade, after the DJIA added 0.8% Friday.

Technology stocks were leading gains as they tracked the positive showing for their U.S. peers. In Seoul, Hynix Semiconductor rose 2.3% while in Taiwan, Hon Hai was up 0.8% after IBM added 3.0% Friday, Intel climbed 1.5% and Advanced Micro Devices rose 6.7%.

In Australia, banks were underperforming the market despite gains for their U.S. peers Friday. National Australia Bank was leading the sector lower with a 1.5% fall, after Credit Suisse labeled banks as expensive compared with industrial stocks. The resource and energy sectors were firm, with BHP Billiton up 0.5% and Woodside Petroleum up 1.2% despite mixed leads from commodity prices.

Crown was up 6.3% at A$9.03 after a large parcel of stock was purchased at a premium late Friday, prompting speculation that billionaire part-owner James Packer could be building his stake in the casino company ahead of a potential privatization.

In Hong Kong, ICBC was up 0.8%, China Construction Bank rose 0.5% and Bank of China was 1.4% higher. The three Chinese banks were lifted by expectations of better third-quarter results as well as news that Central Huijin Investment, the domestic investment arm of China's sovereign wealth fund, intended to raise its stakes in them.

Their A-share counterparts listed in Shanghai were also higher with ICBC up 2.0%, China Construction up 2.6% and Bank of China climbing 1.0%.

Korean steelmakers and refiners were dragging down the Seoul market on worries over their third quarter performance. SK Energy was down 7.9%, S-Oil lost 1.6% while Posco fell 2.1% and Hyundai Steel was 1.7% lower.

Philippine shares were up 0.3%. "We'll likely see a tempered market rise. The moved up but we're still assessing the impact of the recent typhoons,"

In Singapore, the Straits Times Index rose 0.5% while Malaysia's Kuala Lumpur Composite Index was 0.2% higher. Indonesia shares were up 0.3% and shares in Thailand were down 0.1%.

In foreign exchange markets the dollar was slightly higher although the major pairs were trading in very tight ranges. Many investors were sidelined with Japanese markets closed and as many U.S. traders were expected to be away for Columbus Day later.

The U.S. dollar was at Y90.06 from Y89.83 in late New York trade on Friday, while the euro was at $1.4703 from $1.4734 and Y132.47 from Y132.34.

The Singapore dollar was weaker against the U.S. dollar following the Monetary Authority of Singapore's decision to keep its neutral stance on the local currency policy despite raising its economic outlook for the year.

The U.S. dollar was at S$1.3987 from S$1.3950 just before the statement was released.

Spot gold was at $1,049.00 per troy ounce, up $1.20 from its New York close. After the yellow metal lost some ground on Friday, "long liquidation and profit-taking could extend precious metals' losses in the near term," said HSBC's James Steel. Although he added that the bullion rally "still appears essentially intact."

The three-month London Metals Exchange futures copper contract was at $6,259 per ton, up $29 from Friday's London afternoon kerb, while LME aluminum was at $1,893 per ton down $16.

Base metals prices were likely to pull back in near future, having priced in a "very rosy" demand outlook, said commodities economist Ben Westmore at National Australia Bank.

But near-term price direction is also likely to depend on news flow from LME Week, an annual gathering for players in the industry, which starts later Monday. "One of the main questions on people's minds will be the sustainability of China's recovery," said Westmore.

Crude oil futures for November were last up 36 cents at $72.13 per barrel on Globex.