UPDATE:Asian Shrs Mixed In Thin Trade;Aussie Gold Stks Up

(Adds information, quotes, updates/adds market levels)

By Shri Navaratnam & Wei-Zhe Tan

Of DOW JONES NEWSWIRES

SINGAPORE (Dow Jones)--Asian share markets were mixed Tuesday in subdued trade as a holiday in Japan kept bourses range-bound, with gold stocks leading the way in Australia after gains for the yellow metal.

Australia's S&P/ASX 200 was down 0.1% and South Korea's Kospi Composite slipped 0.2%, while Hong Kong's Hang Seng Index fell 0.3%.

The Dow Jones Industrial Average futures contract was up 20 points in screen trade, following the DJIA's 0.8% rise Monday on the release of a slew of encouraging U.S. economic data.

The mood in markets was cautious, however. ANZ bank senior economist Khoon Goh said that the price action in markets "is not risk positive by any means."

"If equities cannot rally on the back of very positive (U.S.) economic data, then how will it fare on disappointing ones?" he said.

Taiwan's headline index inched up 0.1%. David Li, sales trader at Daiwa Securities SMBC-Cathay, said the upside for the market will be limited as the index had already "recovered 100 points from its intraday low yesterday."

Singapore's Straits Times Index was flat, Malaysia's Kuala Lumpur Composite Index rose 0.2%, while the Shanghai Composite Index was up 1.2%.

In the Philippines, shares were up 0.1%, led by Manila Electric, up 17%, and shareholder First Philippine Holdings, up 5.3%, on news Sy Group-led Triratna Holdings had entered a competing bid against the one made by Metro Pacific for First Pacific's stake in the electricity supply and distribution firm.

In Indonesia, shares were 0.4% higher, Thailand stocks were down 0.5% and New Zealand's NZX-50 was down 0.9%.

In China, brokerages were up with Citic Securities up 2.2%, and Haitong Securities rose 2.5% as funds flowed into the sector on hopes of a strong initial public offering debut by China Merchants Securities, which kicked off its IPO roadshow Tuesday.

Australian shares were thinly traded as many traders were away for the Melbourne Cup horse race, with the state of Victoria on holiday. Most sectors were trading up though blue-chips were slightly down, including BHP Billiton, off 0.2%, and Westfield, down 1.9%.

Gold stocks were the only standouts, with Newcrest rising 4.2% and Lihir up 3.6% after gold prices jumped Monday.

The yellow metal was trading up after the International Monetary Fund said it had sold 200 metric tons of gold to India's central bank. It was trading at $1,063.60 a troy ounce, up $10.20 from the New York close.

Westpac senior commodity analyst Justin Smirk in Sydney said the IMF sales add to the broader story of Asian central banks seeking to diversify their U.S. dollar holdings. "The diversification has been an ongoing story for Asian central banks. Gold holdings in comparison to dollar holdings are low...This story is one of evolution, not revolution," he said.

In South Korea, Samsung Electronics was up 1.7% and Hyundai Motor tacked on 2.9%, while KB Financial dropped 1.4% and Shinhan Financial lost 2.4%. "Despite the better-than-expected U.S. ISM manufacturing data, the Kospi is not rising as much as expected, indicating weak sentiment," said Hwang Bin-ah at Kyobo Securities in Seoul.

In New Zealand, much of the interest in the market was centered on utilities investor Infratil. The company said it was in a consortium with NZ Superannuation Fund, which was in exclusive talks to buy some, or the bulk, of Shell New Zealand's downstream assets, valued in 2007 at NZ$2.9 billion, including a 17.1% stake in New Zealand Refining.

Infratil was down 3.0%. Forsyth Barr broker David Price said the market was unenthusiastic about the deal; "We don't know enough about it -- what's in the deal, how they are going to fund it. There are no synergy benefits. People have received it not that favorably and they need more information."

NZ Refining shares, which have been rising on expectation of a sale of the Shell stake, was flat.

In currency markets, the Australian dollar came off about 55 points to US$0.9017 after the Reserve Bank of Australia raised its cash rate by 25 basis points to 3.50% and hinted at a pause in December. The RBA left some analysts speculating that policy could be on hold in December after it said that interest rate rises in October and November would work to temper inflation and ensure a sustainable upswing in the economy.

"There's maybe some hint they have done enough in the initial stage" of rate hikes, said Brian Redican, senior economist at Macquarie Bank in Sydney.

The euro was higher at $1.4780 from $1.4768 in New York, and was lower against the yen at Y133.35 from Y133.44. The U.S. dollar was around Y90.25 from Y90.35. The London Mercantile Exchange 3-month aluminum contract was last up $6 at $,1922 per ton from the PM kerb while the LME 3-month copper contract was up $5 at $6,560 per ton.

Crude oil remained mostly steady after rising $1.13 in New York on the back of improved economic data. Nymex December crude was flat at $78.13 a barrel on Globex.

-Shri Navaratnam, Dow Jones Newswires; +65-6415-4140; shri.navaratnam@dowjones.com

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(END) Dow Jones Newswires

November 02, 2009 23:35 ET (04:35 GMT)


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