A Mixed Close for Asian Markets (MarketWatch) (08-02-2008)

HONG KONG (MarketWatch) -- Japanese shares retreated on Friday due to more than expected falling machinery orders in December, while Australia banking shares rallied following the modest gains on Wall Street.

In mid-afternoon trade, the Nikkei 225 Average was down 0.4% to 13,157.71, while the Topix index declined 0.6% to 1,296.89.

Markets in Hong Kong, South Korea, Indonesia, China, Malaysia, Taiwan and Vietnam are shut for Chinese Lunar New Year holidays, while Japanese markets will be closed on Monday for a national holiday.

Australia's S&P/ASX 200 was up 1% and New Zealand's NZX-50 fell 0.8% while Thailand's SET index added 1.5%.

Analysts in Sydney said traders were looking ahead to the Reserve Bank of Australia's quarterly statement on monetary policy Monday for further clues to the outlook for interest rates. The central bank lifted interest rates a quarter percentage point Monday to 7%, the 11th straight hike since mid-2002.

In currencies, the U.S. dollar fetched 107.33 yen, compared to 107.46 yen in late New York Thursday and 106.38 yen in New York late Wednesday.

In Tokyo, shares of industrial robot maker Fanuc Ltd. were down 2.7% after the Cabinet Office released data showing machinery orders, a key indicator of capital expenditures in the coming half-year, fell dramatically in December.

Machinery orders, excluding those originating from shipping and electric-power utilities, fell 3.2% in December from the preceding month, well below consensus expectations for a 0.9% contraction.

Financials in Japan had a mixed day with major banks finishing down as Mitsubishi UFJ lost 3.11%, Sumitomo was down by 0.45% and Mizuho Financials slumped 4.39%, while others like Yamaguchi FG gained 3.27% and Michinoku Bank advanced by 2.7%.

Among the resource sector on the Australian Stock Exchange, shares of Santos added 2.5%, while BHP Billiton fell back 2%.

Shares of Commonwealth Bank of Australia were up 2.1% and National Australia Bank climbed 1.6%

In other Tokyo action, shares of Japan Tobacco climbed 3.9% after the world's third-biggest cigarette maker by sales lifted its operating profit forecast for the fiscal year ending March 31 by 4.2% to 422 billion yen ($3.93 billion).

Softbank shares rose 2.1%, adding to yesterday's 6% surge, after the internet and telecom giant said it added 200,700 new cellular subscribers last month. After the close of trading Thursday Softbank reported upbeat net profit and operating profit for the fiscal third quarter.

Source: MarketWatch