Asian stocks decline after losses on Wall Street (AP) (16-12-2009)

BANGKOK (AP) -- Asian stocks were mostly lower on Wednesday although Japan's market rose sharply on banks that were gaining on a report that global finance regulators will give lenders a decade or more to meet stricter capital rules. Investors were concerned over the prospect of higher interest rates after a measure of U.S. inflation rose.

Japan's Nikkei 225 stock average jumped 93.93 points, or 0.9 percent, to 10,177.41 -- its best finish since Oct. 27.

Hong Kong's Hang Seng shed 202.18, or 0.9 percent, to 21,611.74 and South Korea's Kospi fell 0.1 percent to 1,664.24.

Elsewhere, Australia's benchmark lost 0.3 percent after figures showed the economy slowed in the third quarter as the boost from government stimulus spending faded. Taiwan's market dropped 0.7 percent.

China's Shanghai index slipped 0.6 percent as new share sales absorbed cash and sated buying appetite.

China including Hong Kong has outstripped the U.S. in the amount of money raised from stock listings so far this year at nearly $52 billion.

In Tokyo trade, megabank Sumitomo Mitsui Financial Group Inc. soared 14 percent while rival Mizuho Financial Group Inc. led Nikkei vaulted 15 percent. Japanese banks have lagged gains in the broader market in recent months, mainly due to concerns about having to raise new funds, said Credit Suisse analyst Shinichi Ina in Tokyo.

Oil prices hovered near $71 a barrel in Asia with gains tempered by a U.S. crude supply report that showed an unexpected increase in inventories last week.

Benchmark crude for January delivery was up 48 cents to $71.17 in electronic trading on the New York Mercantile Exchange. On Tuesday, the contract added $1.18 to settle at $70.69.

In currencies, the dollar rose to 89.77 yen from 89.67 yen. The euro rose to $1.4551 from $1.4532.

Source: AP