Asian markets end mixed; recession confirmed in Japan (AP) (17-11-2008) 

BANGKOK, Thailand (AP) -- Asian markets were mixed on Monday with recession confirmed in Japan, which brought to the forefront once again the gloomy outlook for the world economy.

Japan's benchmark Nikkei 225 stock average edged up 60.19 points, or 0.7 percent, at 8,522.58 after trading as high as 8767.98 and Hong Kong's Hang Seng index gave up early gains to dip 0.1 percent to 13,529.53.

Mainland China's Shanghai Composite index rose 2.2 percent, but Australia's main index slid 2.5 percent and India's Sensex tumbled 4.4 percent.

Investors showed little reaction to this past weekend's summit where leaders vowed to cooperate more closely and give bigger roles to fast-rising nations, but postponed many decisions until their next gathering in April. According to a Merrill Lynch economist in Hong Kong, some investors were disappointed there was no explicit announcement of coordinated fiscal stimulus measures.

Japan's economy, the world's second-largest, entered into a recession for the first time since 2001 as companies sharply cut back on spending in the third quarter, Tokyo said.

The economy shrank at an annual pace of 0.4 percent in the July-September quarter, meaning the country now joins the 15 nation euro-zone as officially in recession, defined as two straight quarters of contraction. The Organization for Economic Cooperation & Development, a club of rich nations, has said it expects the U.S. to slide into recession as well.

But with many companies having already announced significant downgrades to earnings forecasts, the Japanese market took the news of a second straight quarter of economic contraction in its stride.

In Tokyo trading, Toyota Motor Corp. dipped 0.3 percent, Mitsubishi UFJ Financial Group fell 1.7 percent, while Honda Motor Co. rose 1.7 percent.

Some analysts believe that much of the bad news has been priced into Asian stock markets, though a quick rebound was unlikely.

Source: AP