= Asian Shares End Mixed; Nikkei Reaches 8-Month Closing High

SINGAPORE, Jun 08, 2009 (Dow Jones Commodities News Select via Comtex) -- HSNGY | Quote | Chart | News | PowerRating -- Asian share markets ended mostly lower Monday although financials along with export-related stocks helped lift the Nikkei index in Tokyo to an eight-month closing high.

Sentiment in Hong Kong took a turn for the worse as Hang Seng Bank forecast the local economy would likely contract 5% in 2009, steeper than its earlier forecast for a 3% contraction. It also forecast exports would decline 12% this year. "The global economy is not out of the woods, even though the pace of contraction may be easing," Hang Seng Bank analysts said in a note.

Hong Kong's Hang Seng index fell 2.3%, Taiwan's Taiex shed 3.3% and South Korea's Kospi edged 0.1% lower. In afternoon trading, India's Sensex was off 3.3% and Singapore's Straits Times Index was down 2.6%.

U.S. stock futures were recently pointing to a weak opening there, with futures on the Dow Jones Industrial Average down around 95 points.

Among gainers, Tokyo's Nikkei 225 rose 1.0% to end at 9865.63. Financial, tech and auto stocks were behind the gains in Tokyo, with Nomura Holdings up 4.9%, Tokio Marine 3.2% higher, and Canon up 3.4%. Toyota Motor was up 1.3% following a report in the Nikkei it planned production cuts for compact and subcompact models by 2012. Mazda Motor added 6.1%.

Elsewhere, Shanghai's Composite Index added 0.5%. Markets in Sydney were shut for a public holiday.

"There seem to be worries about inflation and a potential rate hike in the U.S., but I think it's too early to worry about such possibilities," said Park Seok-hyun at KTB Securities in Seoul." I think investors should rather watch for signals of an economic recovery."

In Hong Kong, HSBC was down 2.7%, still hurt by concerns it may be headed for round two of its subprime woes. China Resources Power fell 4% on its first trading day as a component of the HSI.

Trade was halted in Shenzhen Development Bank and Ping An Insurance, with both attributing the suspension in separate statements to "an important issue." There was talk Ping An may buy a stake in Shenzhen Development Bank, or Ping An may swap shares with the bank. A person familiar with the situation said the lender was planning an equity raising to boost its capital adequacy ratio above 10%, a prerequisite for Chinese banks that want to conduct mergers and acquisitions.

Shipping stocks were lagging in Asia after a 6.9% fall in the Baltic Dry Index Friday. Nippon Yusen and Mitsui O.S.K. Lines were down 0.5% each in Tokyo, while in Hong Kong, Pacific Basin was down 2.5% and China Cosco ended 5.8% down.

The U.S. dollar was slipping against the Japanese yen and euro in Asia, but still higher from a week previously, at 98.27 yen from 98.80 yen Friday. The euro was at $1.3990, from $1.3964 Friday, and at 137.69 yen, from 138.04 yen. Against regional currencies the dollar was broadly stronger compared with Friday's levels.

"Finally we are seeing some disintegration of the (lazy) risk appetite vs. risk aversion story," wrote SocGen Asian FX and Rates strategist Patrick Bennett.

Spot gold was down $6.50 from Friday in New York, at $948.10 a troy ounce.

Front-month Nymex crude oil futures fell $1.52 to $66.92 a barrel according to Future Source having declined 37 cents Friday in New York.

-Dow Jones Newswires; +65-6415-4140; markettalk@dowjones.com

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(END) Dow Jones Newswires

06-08-09 0619ET

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