DJ CORRECT:Asian Shares Mixed,Choppy;Chinese Data Keenly Awaited

Aug 10, 2009 (Dow Jones Commodities News Select via Comtex) -- EQNMF | Quote | Chart | News | PowerRating -- ("=Asian Shares Mixed, Choppy; Chinese Econ Data Keenly Awaited," published at 0108 GMT misstated the name of Equinox Minerals in the eleventh paragraph. The correct version follows:)

By Matthew Allen

Of DOW JONES NEWSWIRES

SINGAPORE (Dow Jones)--Asian stock markets were mixed and choppy Tuesday with investors keenly awaiting a slew of economic data from China. Rio Tinto was lower again as its China-related troubles rumbled on.

"There are few domestic trading cues, so investors are monitoring Chinese markets' reaction to data, as well as the FOMC meeting in the U.S.," said Mizuho Securities market analyst Yukio Takahashi.

Markets were moving in a narrow range after Wall Street pulled back slightly from the 2009 highs hit Friday. The Dow Jones Industrial Average and the broader S&P 500 both fell 0.3% Monday. Dow futures were recently down 14 points in screen trade.

"After global stock markets rose sharply from March, stocks are expected to undergo a cooling-down period in the short term," said You Seung-min at Samsung Securities in Seoul.

Japan's Nikkei 225 was up 0.2%, Australia's S&P/ASX 200 was up 0.1%, South Korea's Kospi Composite was 0.1% lower while New Zealand's NZX-50 was 0.5% lower.

While data from China, including July industrial production and fixed asset investment, was likely to throw some more light on the China-demand led recovery story, players were also looking to the U.S. where the Fed begins its two-day rate setting meeting later.

"The focus will be on what the Fed says, and what the Fed says could be particularly important given that the OIS-Libor spread and Fed funds futures strip is pricing in a Fed hike for the first quarter next year," said Brown Brothers Harriman in a note.

The Tokyo market was supported by insurers as Mitsui Sumitomo Insurance Group Holdings rose 3.1% after saying late Monday that its April-June group net profit rose 37% thanks to sharp gains from derivative trading. Other insurers were also higher with Tokio Marine up 2.3%.

In Australia mining giant Rio Tinto shares were down 3.0% early on fears for its relationship with China, its biggest iron ore customer. This was despite comments from Australia's Foreign Minister Stephen Smith Tuesday that allegations on a Chinese website that Rio executives had cost the country more than US$100 billion by stealing state secrets weren't the official view of Beijing.

The allegations came in an essay posted on a website called China Secrecy On-Line, written by an official with the local bureau for the protection of state secrets in east China's Jiangsu province. "It is now quite clear given that the article has been taken off the website, that it was essentially the opinion of the individual writer and not, if you like, officially sanctioned," Smith said.

Rio's mining peers were also lower. BHP Billiton was down 0.9%, Alumina was 1.7% lower and Equinox Minerals had lost 1.0%.

Korean stocks were choppy in light volume. The Bank of Korea left interest rates on hold, as expected. Players were now waiting for comments from the central bank governor later. "People are worried about the potential that the central bank may take action to absorb ample liquidity. But it's not yet time for global policy makers to tighten monetary policy," said Samsung Securities' You Seung-min.

Mirae Asset Securities was down 1.1%, Hyundai Motor was 1.5% lower and Samsung Electronics was down 0.4%.

Stocks in New Zealand were weaker, and expected to remain that way unless regional markets strengthened and led the way higher, said ABN Amro Craigs broker Bryon Burke. "It seems when the market wants to take a breather, volumes fall right away. There's no aggressive selling and people are not really taking profits," he added.

Air New Zealand was down 1.7%, falling from its 12-month high hit Monday. Contact Energy was down 0.6% and Telecom was 1.5% lower.

In foreign exchange markets the euro was buying $1.4145 compared with $1.4142 late in New York trade, and Y137.05 from Y137.32. The dollar was at Y96.90 from Y97.11.

Japanese government bonds were stronger, though in a quiet market, after U.S. Treasurys gained Monday and equities slipped. The lead September futures contract was up 0.06 at 137.29 points. The 10-year cash JGB had yet to be traded, and yielded 1.455% at Monday's close.

LME three-month copper was at $6,106 per ton, down $29 from the afternoon kerb. Aluminum was at $1,961 per ton, down $8 from the kerb.

Standard Bank turned bullish on base metals in the third quarter. After previously expecting prices to stagnate or even pull back in the quarter, due to China-related factors including a slowdown in demand growth and the aggressive restocking seen in the second quarter, the bank now expects base metals price strength to continue. "This is due to investor money flows into commodities remaining robust and a growing number of signals that the global economy is on the road to recovery and that the downturn in metals demand is past its worst," the bank said.

Spot gold was at $945.85 per troy ounce, up 25 cents on the New York close.

Crude oil futures were a tad higher after falling Monday in New York as the dollar rose against the euro and equities fell. Nymex light, sweet crude for September delivery was at $70.80 per barrel, up 20 cents after settling at $70.60 per barrel Monday.

-Matthew Allen, Dow Jones Newswires; +65-6415-4140; matthew.allen@dowjones.com

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(END) Dow Jones Newswires

08-10-09 2243ET

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