- POSTED: 17 Jul 2014 17:07
- UPDATED: 17 Jul 2014 19:19
Asian shares were mixed on Thursday after the Dow on Wall Street ticked up another record high in response to strong earnings and a positive outlook on the US economy by the Federal Reserve.
HONG KONG: Asian shares were mixed on Thursday after the Dow on Wall Street ticked up another record high in response to strong earnings and a positive outlook on the US economy by the Federal Reserve.
An early rally in response to the US gains fizzled towards the end of the day as profit-takers moved in.
Tokyo ended flat, edging down 9.04 points to finish at 15,370.26 as the yen strengthened against the dollar, while Sydney was marginally higher, adding 3.54 points to 5,522.4 and Seoul gained 0.37 per cent, or 7.42 points, to 2,020.90.
Shanghai lost 0.57 per cent, or 11.69 points, to 2,055.59 while Hong Kong was a touch lower, dipping 2.41 points to 23,520.87.
The mood remained largely buoyant after China said on Wednesday that the world's number two economy and key driver of global growth expanded more than expected in the second quarter of the year.
US shares resumed their uptrend on Wednesday as traders welcomed a report from the Fed that said all 12 economic regions of the country continued to expand in the six weeks to July 7.
Pointing to generally higher consumer spending, with strong auto sales outperforming other retail segments, the bank's Beige Book report is the latest to indicate the world's top economy is getting back on track.
It also comes weeks after the Labor Department said far more jobs were created in June than forecast while unemployment slipped.
On Wall Street, the Dow jumped 0.45 per cent to a new record, while the S&P 500 gained 0.42 per cent and the Nasdaq added 0.22 per cent.
The US market was also cheering better-than-expected earnings from chip giant Intel and a "landmark" IBM partnership with Apple.
On currency markets, the dollar dipped to 101.49 yen in Asian trade from 101.69 yen in New York on Wednesday.
The greenback had enjoyed a rally on Wednesday after Fed chief Janet Yellen told lawmakers on Capitol Hill that interest rates could rise "sooner and be more rapid than currently envisioned" if the jobs market strengthens further.
The euro bought US$1.3530 and 137.33 yen in Tokyo, against US$1.3524 and 137.55 yen in US trade.
Oil prices extended gains after a bullish US supply report indicated robust demand in the world's top crude consumer.
US benchmark West Texas Intermediate for August delivery rose 83 cents to US$102.03 while Brent crude for September gained 39 cents to US$107.56 in late trade.
Gold was at US$1,302.90 by 1040 GMT compared with US$1,298.75 late Wednesday.
In other markets, Taipei fell 0.81 per cent, or 76.49 points, to 9,408.24; Wellington was almost unchanged, dipping 1.86 points to 5,112.39; Manila closed 0.49 per cent higher, adding 33.32 points to 6,867.36; Bangkok rose 0.34 per cent, or 5.24 points, to 1,535.66; Singapore was flat, edging up 2.46 points to 3,306.89; Kuala Lumpur slipped 3.57 points, or 0.19 per cent, to end at 1,883.14; Jakarta fell 0.84 per cent, or 42.73 points, to 5,071.20; and Mumbai was flat, closing up 11.44 points at 25,561.16.