Asian shares lost ground on Thursday as weak data on European business activity and China's manufacturing sector rekindled global growth worries. A weak lead from Wall Street overnight, disappointing earnings from computer makers Dell and HP and concerns surrounding Europe after the downgrading of Greece's credit rating by Fitch also undermined investor appetite for riskier assets.
Copper and oil pared early losses as the euro rose to a 2-1/2 month high against the dollar, boosted by better-than-expected German business confidence data.
Japan's Nikkei index rose 0.4 percent to its highest level since early August, as the yen's drop to its lowest against the dollar since July boosted export-related shares. The broader Topix index ended half a percent higher. Among exporters, Honda Motor rose half a percent, Sharp added 2.7 percent and Fujitsu jumped 3.1 percent.
Brokerage stocks also gained ground on hopes the recent market rally will sustain, aided by the wave of liquidity unleashed by major central banks. Daiwa Securities Group and Nomura Holdings both jumped around 4 percent each. Mazda Motor plunged 6.8 percent to a two-week low after saying it plans to raise up to $2 billion in a public share offering.
Realtor Mitsui Fudosan and Sumitomo Realty & Development rose 2-3 percent on expectations the Bank of Japan's decision to pursue "powerful monetary easing" will hep boost land prices in major cities.
Chinese shares gained ground for the fifth day, with the benchmark Shanghai Composite index rising 0.3 percent to a near three-month high, helped by strength in gold stocks and property developers. Hong Kong's Hang Seng index fell 0.8 percent, dragged down by financial stocks ahead of key earnings in the next few days.
Australian shares closed slightly lower as companies reported mixed earnings and uncertainty about the stability of the Australian political scene undermined appetite for risk. The benchmark S&P/ASX 200 fell 0.2 percent while the broader All Ordinaries index edged down 0.1 percent.
Miner BHP Billiton lost half a percent, Rio Tinto shed 1.5 percent and Fortescue ended down 1.6 percent. Iluka Resources tumbled 3.3 percent after saying that it expects to post lower zircon and rutile production in 2012.
The big four banks fell between 0.2 percent and one percent, investment bank Macquarie Group fell 2 percent and insurer Suncorp lost 2.3 percent. Meanwhile, insurance Australia Group soared 8.3 percent after the insurer said it was on track to meet its full-year forecast.
Energy shares edged higher, with Oil Search and Woodside climbing 2-3 percent driven by higher oil prices. Virgin Australia jumped 8.2 percent after the airline reported net income of $51.8 million for the half year to December, up 117.6 percent from $23.8 million a year earlier. Shares of rival Qantas slipped 0.3 percent.
South Korea's Kospi average lost a percent, with tech shares bearing the brunt of the selling, as overseas investors sold shares after recent surges. Samsung Electronics fell 3.1 percent, the most in two months, on concerns high oil prices and continuing global uncertainty could dent demand for consumer goods.
LG Electronics slumped 4.4 percent, LG Display declined 1.4 percent and Hynix Semiconductor edged down half a percent. Brokerages also lost ground, with Daewoo Securities, Samsung Securities and Woori Investment & Securities ending down around 2 percent each.
New Zealand shares fell modestly, with benchmark NZX index falling 0.2 percent in volatile trading. Fletcher Building, the nation's largest construction firm, lost 0.8 percent on earnings disappointment while Port of Tauranga rose 0.6 percent after posting record first-half earnings.
Mainfreight, the transport group which reported disappointing quarterly earnings last week, shed half a percent, rubber goods manufacturer Skellerup Holdings lost 0.7 percent and whiteware manufacturer Fisher & Paykel Appliances slumped 6.9 percent. Vector rose 1.6 percent after the Auckland-based electricity and gas distributor reported a 6.9 percent rise in half-year profit. Telecom gained 0.7 percent ahead of its results tomorrow and carpet maker Cavalier advanced 3.8 percent.
Indian shares reversed early losses as European shares steadied after a two-day drop and investors cut short positions on the expiry of F&O contracts. The benchmark Sensex was last trading up 0.3 percent.
Elsewhere, Indonesia's Jakarta Composite index fell 0.9 percent, Malaysia's KLSE Composite shed 0.3 percent, Singapore's Straits Times lost a percent and the Taiwan Weighted average ended down 0.8 percent.
U.S. stocks posted modest losses overnight, snapping three days of gains, as disappointing earnings from computer maker Dell and downbeat reports on European business activity and Chinese manufacturing weighed on markets. Traders also reacted to news that Fitch Ratings downgraded Greece's credit rating further into junk status. The Dow edged down 0.2 percent, the tech-heavy Nasdaq lost half a percent and the S&P 500 slipped 0.3 percent.
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Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.