Asian markets end mixed on US inflation concerns (AP) (20-03-2009)

HONG KONG (AP) -- With Tokyo closed for a holiday, other Asian stock markets were mixed Friday as investors turned cautious amid worries the U.S. Federal Reserve's latest move to combat recession in the world's largest economy will lead to rampant inflation.

Concern in the U.S., as investor euphoria fizzled out over the central bank's aggressive $1.2 trillion plan to buy government bonds and debt securities as fears resurfaced about the possibility of inflation stoked by the new spending.

The same concerns have hit the dollar, which stabilized in Asia but was still headed for a 4 percent loss against the yen this week. That hurts Japan's big exporters by eroding their foreign income.

Hong Kong's Hang Seng Index fell 207.85 points, or 1.6 percent, to 12,923.07, and Australia's benchmark S&P/ASX 200 stock index declined 0.4 percent to 3,465.8.

Stocks in mainland China rose for a fifth day, with the Shanghai Composite advancing 0.5 percent to 2,277.89. South Korea's Kospi climbed 0.8 percent to 1,171.04. Trading will reopen in Tokyo on Monday.

Markets in the Philippines and Thailand also rose.

The dollar recovered some after tumbling overnight, gaining to 94.62 yen from 94.53 yen earlier -- but down from nearly 99 yen two days ago. The euro was lower at $1.3652 from $1.3660.

Oil prices eased after surging overnight on a weakened dollar and evidence that OPEC has significantly slowed production. Benchmark crude for April delivery was down 49 cents at $51.12.

Source: AP