Most Asian stock markets moved lower on Friday, extending recent losses, after a report showing slowing export growth in China outweighed positive sentiment generated by upbeat U.S. trade data.
Copper prices reversed gains to extend overnight losses and oil prices hovered below $102 a barrel after China reported lower growth in imports. The euro fell against most major currencies as Greek debt worries persisted and the fact that the ECB didn't raise interest rates immediately suggested the pace of euro zone interest rate hikes may be slower than previously thought.
The Japanese market rose, taking cues from a rebound in U.S. stocks overnight, where stocks recovered a little bit from their June weakness on data showing record exports and improving consumer confidence. Both the Nikkei and the broader Topix index ended up about half a percent, with the euro's weakness against the yen limiting the upside.
Toyota Motor closed up 0.9 percent ahead of its earnings forecast for the fiscal year from April released at the market close. The automotive giant said it expects its net profit to drop 31 percent in the current fiscal year, primarily due to the negative impact of the appreciation of the yen on its profits and the anticipated decline in vehicle sales due to the ongoing impact of the March 11 Great East Japan Earthquake.
Tokio Marine closed 1.5 percent higher on a Nikkei report that it is buying a 49 percent stake in U.S. insurance agency WNC as part of an industry-wide trend to expand overseas. Takeda Pharmaceutical tumbled 2.9 percent after France's drug safety authority suspended the use of the company's diabetes treatment Actos due to concerns on heightened cancer risks. Kansai Electric Power closed down 1.3 percent after the utility postponed a bond issue.
China's Shanghai Composite index finished marginally higher, after falling 1.7 percent on Thursday as investors were reluctant to take positions ahead of inflation data due next week.
China's trade surplus increased in May, but the growth was far below economists' expectations as imports surged along with a cool off in export growth, data from the General Customs Administration showed.
The trade balance rose to a surplus of $13.05 billion from a surplus of $11.4 billion in April. Exports grew 19.4 percent year-on-year in May to $157.16 billion, down from 29.9 percent growth reported in the previous month.
Hong Kong's Hang Seng index lost 0.8 percent, edging lower for the seventh straight session, as banking stocks came under selling pressure on concerns over Beijing's monetary policy.
The Australian market closed firm for a second consecutive session, with resource stocks leading the gainers ahead of the Queen's Birthday long weekend. The S&P-ASX 200 and the broader All Ordinaries edged up about 0.3 percent each.
Market heavyweight BHP Billiton and rival Rio Tinto closed up about half a percent. Oil Search led the gains in the energy sector, rising 2.9 percent, while Woodside and Santos fell about 0.4 percent each. Gold miner edged up 0.1 percent after the price of gold rose in Sydney.
Banks closed mixed, with Westpac gaining 0.3 percent and ANZ adding 0.1 percent, while NAB slipped half a percent and Commonwealth ended little changed. Consumer discretionary stocks such as David Jones and Billabong rose around 2 percent each after recent losses.
South Korea's Kospi gave up initial gains to end 1.2 percent lower after a surprise quarter percentage point rate hike by the Bank of Korea dragged down heavyweight shares such as Hyundai Motor.
Shares of the nation's top automaker lost 1.6 percent, heavyweight Samsung Electronics shed 1.6 percent, Hyundai Heavy Industries fell 1.3 percent and LG Electronics slumped 5.2 percent. Chipmaker Hynix Semiconductor plunged to a five-month low before ending down 7 percent on equity dilution worries.
The members of the Bank of Korea monetary policy board voted to hike benchmark interest rates for the third time this year to fight inflation that remains outside the central bank's target range of 3 to 4 percent.
New Zealand's benchmark NZX-50 pared its early gain to end little changed after losing a percent the day before. Fletcher Building added a little over a percent, Tower climbed 4 percent and Air New Zealand rose nearly 3 percent, while Contact Energy eased 0.3 percent, Telecom fell 0.4 percent and Nuplex ended down 0.6 percent.
Kathmandu Holdings gained 1.4 percent on news that former owner Jan Cameron has invested A$20 million in rival retailer Macpac. Cavalier Corp advanced 1.4 percent after the Commerce Commission cleared the way for the carpet maker's subsidiary Cavalier Wool to buy the wool scouring operations of rival NZ Wool Services International.
Elsewhere, India's benchmark Sensex was last trading down 0.8 percent near the day's low on persistent worries about potential interest rate hikes, notwithstanding disappointing industrial output data for April. Indonesia's Jakarta Composite and Singapore's Straits Times lost about half a percent each and the Taiwan Weighted fell 1.8 percent, while Malaysia's KLSE edged up 0.3 percent.
U.S. stocks closed notably higher on Thursday with an upbeat trade report and bargain hunting after recent losses contributing to the surge. The Dow rose 0.6 percent, the Nasdaq added 0.4 percent and the S&P 500 moved up 0.7 percent.
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