Asian shares mixed, Tokyo hit by GDP data

HONG KONG, May 19 (AFP): Asian markets were mixed Thursday with Tokyo slipping after data showed Japan's economy was hit harder than expected by the March 11 earthquake. Tokyo ended 0.43 per cent, or 41.26 points, lower at 9,620.82 on news that the economy shrank 3.7 per cent year on year in January-March, the second consecutive quarter of contraction that puts the country in a technical recession. The contraction was sharper than an average market forecast for a drop of around two per cent. "The Japanese economy is expected to remain weak for the time being," Economy Minister Kauro Yosano told reporters, adding that a third straight contraction in April-June was likely. Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley, told Dow Jones Newswires: "The market was expecting a V-shaped recovery, but today's GDP numbers are raising doubts that we will get out of the slump anytime soon." However, the Nikkei's losses were softened by a weaker yen and rising commodity prices. And Hisatsune Kobayashi, general manager at SMBC Nikko Securities, said: "On the other hand, we are seeing faster-than-expected resumption of production by Nissan Motor, Toyota Motor and Renesas Electronics." Hong Kong ended 0.66 per cent, or 152.24 points, higher at 23,163.38 and Sydney added 1.34 per cent, or 62.7 points, to end at 4,756.4. But Seoul dived 1.89 per cent, or 40.27 points, to 2,095.51 and Shanghai fell 0.46 per cent, or 13.20 points, to 2,859.57. Analysts said stock and currency markets gave little reaction to the resignation of International Monetary Fund chief Dominique Strauss-Kahn, who has been held in New York on charges of sexually assaulting a hotel maid, claims he denies. On Wall Street the Dow finished 0.65 per cent higher after minutes from the Federal Reserve's policy setting committee revealed it is in discussions about how to bring to an end its $600 billion bond-purchasing scheme, otherwise known as quantitative easing. The US market was also boosted by computer giant Dell, which beat expectations by nearly tripling first-quarter profit from a year ago to $945 million. Oil eased slightly in the afternoon after earlier gains. New York's main contract, light sweet crude for June delivery, dipped 26 cents to $99.84 a barrel and Brent North Sea crude for July delivery lost 16 cents to $112.14. On money markets the dollar bought 81.66 yen in Tokyo morning trade, after topping 81.80 yen earlier in the day. The dollar traded at 81.64 yen in New York late Wednesday. The euro fetched $1.4260 in the morning, up from $1.4236. Against the yen, the euro traded at 116.45 yen compared with 116.38 yen in New York. The euro continued to be strained as officials tried to hammer out a deal to help Greece solve its debt problems. Gold closed at $1,490.00-$1,491.00 per ounce, down from its Wednesday close of $1,493.00-$1,494.00.