Asia markets mostly up; Nikkei up 0.3%, but Sharp drops 11% – CNBC

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Asian markets closed mostly higher Friday, with Japan extending gains, but some caution persisted after recent volatility.

Stephen Innes, a senior trader for Asia Pacific at OANDA was, doubtful the relatively sanguine market sentiment would persist.

“Despite this glimmer of optimism that we are seeing leading up to this weekend’s G-20 summit, the likelihood of a coordinated policy pact is doubtful. Instead, the big fear is that whatever sliver of optimism investors currently have in an otherwise dreary outlook will be further eroded after the summit. So we could be in for some messy markets next week,” he said.

G20 finance ministers and central bankers were gathering in Shanghai for a summit that kicked off Friday to discuss global economic growth concerns.

In Japan, the benchmark Nikkei 225 ended up 0.30 percent, or 48.07 points, at 16,188.41, retracing gains of as much as 2.06 percent earlier in the session. The index had tacked on 1.41 percent in Thursday’s session. The broader Topix closed up 0.29 percent, or 3.73 points, at 1311.27.

Shares initially got a boost as the yen weakened, with the dollar-yen pair strengthening above the 113-handle, but the yen gave up some of its gains during the session. The dollar was fetching 112.69 yen at 14:40 SIN/HK. A weaker yen is a positive for shares of Japan’s exporters as it boost overseas earnings when they are translated back into the home currency.

Exporters were mixed, with Toyota down 0.35 percent, while Sony added 0.17 percent.

Troubled Japanese electronics maker Sharp saw steep losses, with its shares down 11.41 percent; on Thursday, its shares fell 14 percent. The sell-off started after Reuters and the Nikkei reported Thursday that the company accepted a 659 billion yen ($5.9 billion) takeover bid by Taiwan’s Foxconn. Since then, several media outlets reported the Taiwanese manufacturer as saying that it would not sign the deal until Sharp clarified terms in a new document over previously undisclosed contingent liabilities potentially worth more than $3 billion.

Shares of Foxconn, also known as Hon Hai Precision Industry, were down 1.66 percent.

Among other markets, Chinese markets were also higher, with the Shanghai composite up 0.95 percent, or 25.96 points, at 2767.21, retracing some of its 6.4 percent plunge in the previous session. But the Shenzhen composite closed down 0.12 percent, or 2.13 point, at 1736.54. Hong Kong’s Hang Seng Index tacked on 2.52 percent, or 475.40 points, to close at 19,364.15.

In South Korea, the Kospi ended up 0.08 percent, or 1.59 points, at 1920.16.

Bucking the trend, Australia’s S&P/ASX 200 closed nearly flat at 4,879.96, down just 1.22 points, with the energy and mining sectors down 0.93 and 0.77 percent, respectively. Miners finished mostly lower, with Rio Tinto, BHP Billiton and Fortescue down between 2.56 and 3.19 percent.

Asia markets mostly up; Nikkei up 0.3%, but Sharp drops 11% – CNBC}