Asian shares pare intraday losses but close lower (MarketWatch) (21-05-2010)

TOKYO (MarketWatch) - Asian shares were down Friday, but many markets were off their lows as some investors picked up shares battered by continuing fears about Europe's debt crisis.

Property stocks in China and banking plays in Australia recovered, although weak sentiment continued to weigh on some technology shares in Tokyo and Taipei.

Sentiment was hit after the Dow Jones Industrial Average fell 3.6% on Thursday, its largest percentage drop since March 5, 2009, due to worries about the potential impact of the euro zone debt crisis on global growth.

Japan's Nikkei Stock Average ended down 2.5% at a fresh 2010 low of 9784.54, but was off an earlier fall of more than 3%. The broader Topix index slumped 2.1%, to 879.69. Australia's S&P/ASX 200 was 0.3% lower, but pared a morning loss of around 3.2% to a 10-month low.

Taiwan's main index was down 2.5%, and China's Shanghai Composite Index reversed earlier losses and turned 1.1% higher, with Xinjiang-based companies leading the rise following the announcement of a massive stimulus package for the region. Dow Jones Industrial Average futures were 23 points higher in screen trade.

Hong Kong and South Korean markets were closed for a public holiday. Markets in Thailand were also closed due to recent political unrest.

Australian shares recouped some losses, after the S&P/ASX 200 slid to 4,175.7 at one point. Major blue chips came under pressure after U.S. senators passed an ambitious overhaul of U.S. financial markets, channeling broad outrage at Wall Street into a measure that could force major changes at the nation's financial firms.

Spot gold was at $1,174.50 per troy ounce, down $8.50 from late New York trade Thursday.

Source: MarketWatch