By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- Asia stocks lost ground Friday, with the
Japanese market dented by a stronger yen, and with earnings working
to depress Australian shares.
Japan's Nikkei Stock Average declined 0.6%, South Korea's Kospi
traded fractionally lower, and Australia's S&P/ASX 200 index
lost 0.2%.
The action followed a lackluster U.S. lead, as Wall Street held
in a tight range overnight, and the Dow Jones Industrial Average
(DJI) posted another marginal loss
While U.S. jobless claims surprised positively Thursday,
international economic news remained bleak, with data showing gross
domestic product in the 17-nation euro zone contracted by 0.6%
during the fourth quarter.
A stronger yen weighed on Japanese shares, with the dollar
slipping below the Yen93 level overnight, and BNP Paribas currency
strategists noting the greenback's move to the bottom of its recent
range ahead of a meeting of the Group of 20 major economies.
"Markets remain alert to G-7/G-20 headlines," the BNP Paribas
said.
The delegates from the overlapping G-20 and Group of Seven blocs
are due to meet later in the day in Russia, and may make some
references to Japan's recent aggressive measures to weaken its
currency.
A stronger yen tends to depress investor appetite for Japanese
companies that make a significant portion of their profit
overseas.
Currency-sensitive auto stocks were among the worst performers
Friday in Tokyo, with Mazda Motor Corp. (7261.TO) down 4%, and
Subaru maker Fuji Heavy Industries Ltd. (FUJHY) losing 3.3%.
Technology exporters' losses included a 2.3% drop for Casio
Computer Co. (CSIOY) and a 3% loss for Panasonic Corp. (PC)
Shares of Sony Corp. (SNE) surrendered 3.2%, also weighed by a
drop in U.S. January videogame-console and software sales,
according to NPD Group. Sony is widely expected to unveil its new
gaming console at an event Feb. 20.
In the metals sector, Nippon Steel & Sumitomo Metal Corp.
failed to get a bump from a solid profit in its first earnings as a
merged company, as its shares lost 3.1%.
Other steel firms likewise dropped, with Kobe Steel Ltd. losing
4.7%, and Sumitomo Metal Metal Mining Co. (5713.TO). down 3.7%.
While a stronger yen cuts input prices for Japanese steel mills,
they generally favor a weaker yen due to their strong export
business.
Also trading lower after posting earnings, Trend Micro Inc.
(TMICY) lost 8.4%, while Kirin Holdings Co. (KNBWY) fell 6.8% after
a recent run-up in the stock, even as the Japanese brewer posted a
sharp gain in full-year profit.
In Australia, banking group Australia & New Zealand Banking
Group Ltd. (ANEWF) declined 0.8% after the lender reported a 20%
drop in first-quarter net profit amid soft economic conditions.
Miners were the worst performers by sector, with Rio Tinto Ltd.
(RIO) weighing as it traded 2.6% lower after posting a fiscal-year
loss late Thursday.
Rival BHP Billiton Ltd. (BHP) fell 0.7%.
Steel giant Posco (PKX) advanced in South Korea, however, while
Samsung Electronics Inc. (SSNLF) inched up 0.1%.
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