Asian markets decline but pare early losses (MarketWatch) (10-09-2008)

HONG KONG (MarketWatch) -- Asian markets were mostly lower on Wednesday after the sell-off on Wall Street; however they recovered some of their steep early losses as bargain buyers snapped up banks such as Mizuho Financial Group at lower prices.

Energy-related stocks also pared losses as crude-oil prices rebounded after members of the Organization of Petroleum Exporting Countries agreed to a cut in production.

The Nikkei 225 Average fell 0.6% to 12,325.83, after dropping as low as 12,159.53 earlier in the day. The broader Topix bounced off the day's low at 1,169.41 and was recently down 0.2% at 1,189.14.

Hong Kong's Hang Seng Index fell 1.4% to 20,204.69, after dropping below 20,000 earlier in the session, while the Hang Seng China Enterprises Index lost 1.7% to 10,645.64.

China's Shanghai Composite advanced 1.1% to 2,168.59, reversing early losses, after the country's consumer price inflation accelerated at a slower than expected 4.9% in August from the same month a year earlier. Wholesale prices for the month, however, rose 10.1% year-on-year as compared to 10% in July.

In the resource-stocks-laden Australian market fell, the S&P/ASX 200 index shrank 1.5% to 4,905.50

In Tokyo, Inpex Holdings recently slid 2% and commodity trader Mitsubishi Corp. fell 1.2%, but both stocks were off the day's lows. Likewise, BHP Billiton lost 4.1%, after dropping more than 5% earlier in the day, while Woodside Petroleum was recently down 2.9% in Sydney.

National Australia Bank gave up 2.4% in Sydney, Korea Exchange Bank declined 1.7% in Seoul and Industrial & Commercial Bank of China dropped 2.2% in Hong Kong.

In Tokyo, however, Mizuho Financial Group erased early losses on bargain buying and was recently up 2%.

Source: MarketWatch