ASIA MARKETS: Financials, Toyota Drag Tokyo Stocks

By V. Phani Kumar

Japanese shares faltered after opening higher as worries about a slowing global economy dragged on banks such as Sumitomo Mitsui Financial Group, while Toyota Motor Corp. declined on a report the auto giant planned to cut its 2009 sales target.

The Nikkei 225 Average slipped 0.7% to 12,763.62 and the broader Topix index lost 0.7% to 1,224.57, after both benchmarks gained earlier in the day.

Other Asian markets declined as well, with Australia's S&P/ASX 200 fell 1.1% to 4,877.30 and South Korea's Kospi dropped 1% to 1,524.97, while New Zealand's NZX 50 index added 0.2% to 3,338.60.

Shares of Toyota (TM) fell 1.2% after the Nikkei business daily reported the company, which has already cut its 2008 sales target, planned to reduce its 2009 sales forecast to 9.8 million vehicles from 10.4 million.

Financial stocks declined across the region, with Sumitomo Mitsui FG (SMFJY) losing 1.2% in Tokyo and Commonwealth Bank of Australia shrinking 1.7% in Sydney, while Kookmin Bank (KB) slipped 0.8% in Seoul.

Inpex Holdings added 2.5% in Tokyo and Santos (STOSY) jumped 7% in Sydney after crude-oil prices advanced overnight.

ASIA MARKETS: Shanghai, Hong Kong Reverse Gains As Tokyo Falters

By V. Phani Kumar

Chinese shares in Shanghai and Hong Kong dropped Thursday, reversing some of the gains from the previous session, when they soared on speculation that Beijing will announce an economic stimulus plan.

The benchmark Shanghai Composite dropped 1.7% to 2,480.17 in morning trading, after soaring 7.6% in the previous session on speculation Beijing may announce a 200 billion to 400 billion yuan ($29 billion-$58 billion) fiscal stimulus package. The Shenzhen All Share index slid 1.2% to 703.99, after surging 7.2% Wednesday.

"Although we expect further policy easing and some fiscal stimulus [from Beijing], we believe most of the speculation is baseless and flawed," wrote Merrill Lynch analysts in a note.

They added that rumors that China may use its massive forex reserves to buy yuan-denominated A-shares "have been circulated for a long while, but in our opinion, the whole idea is seriously flawed and is unlikely to ever have been seriously considered by Beijing's policy-making circle."

In Hong Kong, the benchmark Hang Seng index lost 1.5% to 20,610.36, while the Hang Seng China Enterprises Index declined 1.1% to 11,053.93.

Markets in the rest of the region also declined, with Japanese shares faltering after opening higher. Worries about a slowing global economy dragged on banks such as Sumitomo Mitsui Financial Group, while Toyota Motor Corp. declined on a report the auto giant planned to cut its 2009 sales target.

MARKET SNAPSHOT: U.S. Stocks Rise Slightly As Tech Cheer Battles Financial Gloom

By Nick Godt

U.S. stocks traded slightly higher on Wednesday, as crude-oil prices fell after data showed a surprisingly large build in weekly supplies, while upbeat results from computer-maker Hewlett-Packard helped offset ongoing concerns about ailing financial firms.

"We had a good report on energy this morning," said Paul Mendelsohn, chief investment strategist at Windham Financial Services. "But the market has been having trouble holding onto these gains."

Crude-oil futures were recently down $1.38 to $113.15 a barrel on the New York Mercantile Exchange. The Energy Department reported a climb of 9.4 million barrels in weekly inventories, while the American Petroleum Institute reported a rise of 12.4 million barrels.

Still, the energy sector posted strong gains, with shares of energy-services firms such as Valero Energy (VLO) leading the way.

The Dow Jones Industrial Average (DJI) rose 10 points, or 0.1%, to 11,358, with 20 of its 30 components trading higher.

Hewlett-Packard (HPQ), a blue-chip stock, rose 3.6% after the company posted an 11% rise in profit and issued an earnings outlook that topped analyst estimates.

The blue-chip average's other technology stocks mostly rose, with IBM (IBM) up 0.3% and Microsoft Corp. (MSFT) up 0.2%.