Shaky economic data from the U.S. cancelled out gains on Wall Street to keep Asian shares in check on Friday.
Oil prices crept higher to near $101 a barrel in Asia as traders shrugged off signs of tepid U.S. economic growth. The dollar slipped against the yen and the euro.
Sony Corp. plunged 3 per cent, a day after reporting a 259.6 billion yen ($3.2 billion) loss for the fiscal year ended March 2011, the third year in a row of losses. Costs of online security breaches around the world and the March 11 earthquake in north-eastern Japan battered the electronics and entertainment giant.
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A stronger yen pushed other Japanese exporters down, including Toyota Motor Corp. by 0.2 per cent and Sharp Corp. by 0.6 per cent.
Shares in mainland China were down amid concerns over the impact of the country’s worst drought in a half-century on power. Shanghai’s electricity utility has warned that some stores and factories may have to close in the hottest days of summer to limit demand. The Shanghai Composite Index dropped 0.1 per cent to 2,733.48 and the smaller Shenzhen Composite Index lost 0.7 per cent.
But Hong Kong’s Hang Seng index rose 0.4 per cent to 23,000.06, and Australia’s S&P ASX 200 was 0.4 per cent higher to 4,677.40. South Korea’s Kospi index was 0.7 per cent higher at 2,106.09.
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On Wall Street, strong earnings helped push stocks higher Thursday, despite two reports suggesting the U.S. economic recovery is slowing. The Commerce Department reported the economy grew at an annual rate of 1.8 per cent in the first quarter, lower than many economists expected. Higher prices for gasoline and weak consumer spending have held back the economy. The Labour Department also said more people applied for unemployment benefits last week.
The Dow Jones industrial average rose 8.10 points to close at 12,402.76. It was the second day of gains for the Dow after three days of losses driven by new concerns about Greece’s debt crisis. The Standard & Poor’s 500 index rose 5.22 points to 1,325.69. The Nasdaq composite rose 21.54 to 2,782.92.
Concerns about the European debt crisis have caused the market to wobble in recent weeks as the likelihood seemed to increase that Greece would need to renegotiate its debts, even after receiving a package of emergency loans last year. Greece’s debt troubles sent global markets reeling last spring as investors shunned the debt of other European nations. Investors are fearful that scenario might repeat itself.
Benchmark oil for July delivery rose 23 cents to $100.46 per barrel on the New York Mercantile Exchange. The contract settled at $100.23 on the Nymex on Thursday.
The euro strengthened to $1.4173 from $1.4140 in late trading Thursday in New York. The dollar also slipped to 81.07 yen from 81.30 yen.