Japanese export stocks fell on Wednesday on fears of ongoing U.S. dollar weakness but foreign buying boosted South Korean exporters in a mixed day for Asian markets.
The Aussie dollar spiked nearly one U.S. cent to a six-year high of 71.18 U.S. cents after a central bank hike that prompted speculation of more rate rises to follow, and put equities under pressure.
MSCI's broadest measure of Asian stock market performance outside of Japan was up 0.62 percent but Tokyo's Nikkei average slipped 0.1 percent, giving back some of hefty gains.
Investors bailed out of exporters Canon Inc (7751.T: Quote, Profile, Research) and Toyota Motor Corp, which tumbled 3.99 percent and 2.05 percent respectively.
The dollar was steady at around 109.57 yen at 0630 GMT, having slid two yen Tuesday, raising questions about the fragility of the U.S. currency. The euro was steady against the dollar, buying $1.494 and 125.96 yen.
Analysts estimated that every one-yen fall in the dollar costs Toyota, which reported strong half-year results on Wednesday, 20 billion to 25 billion yen ($182 million to $228 million) in operating profit.
"It's the flip side of Tuesday's (yen) rally," said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities Inc. "The market should gradually settle as more companies are unveiling strong earnings forecasts."
South Korean stocks gained 1.1 percent to 805, as foreigners bought banks and exporters. Top lender Kookmin Bank rose 3.7 percent and Hyundai Motor rose 3.1 percent.
RATE HIKE HITS STOCKS
Major Australian blue chips fell across the board, sending the market down 0.7 percent, after the central bank hiked its key overnight cash rate a quarter percentage point.
The markets debated both how quickly others, most notably the Bank of England, would follow, and how soon Australia would repeat the hike, given high consumer debt and a housing bubble.
ANZ led the banking sector lower with a 2.06 percent slide as investors worried the rate rise could slow home lending growth. Australia's fifth-largest bank, St George Bank, which earns one-fifth of its earnings from home loans, fell 2.4 percent despite a strong earnings announcement.
Media heavyweight News Corp dropped 0.93 percent, while resources giants Rio Tinto fell 1.25 percent and BHP Billiton eased 0.78 percent.
Hong Kong's benchmark Hang Seng Index ended the morning down 0.39 percent at 12,391.89 ahead of earnings from China's top PC maker Legend Holdings.
Singapore's Straits Times Index lost 0.7 percent, but Taiwan's TAIEX gained 0.55 percent, thanks to a rally in non-tech industrials such as cement companies.
Spot gold was testing a key resistance level at $380, which it touched briefly in New York.
NYMEX crude oil futures were steady at $28.81 a barrel after ending in the United States at their lowest in more than five weeks on expectations that weekly inventory data due on Wednesday would show that crude stocks rose last week.
The Aussie dollar spiked nearly one U.S. cent to a six-year high of 71.18 U.S. cents after a central bank hike that prompted speculation of more rate rises to follow, and put equities under pressure.
MSCI's broadest measure of Asian stock market performance outside of Japan was up 0.62 percent but Tokyo's Nikkei average slipped 0.1 percent, giving back some of hefty gains.
Investors bailed out of exporters Canon Inc (7751.T: Quote, Profile, Research) and Toyota Motor Corp, which tumbled 3.99 percent and 2.05 percent respectively.
The dollar was steady at around 109.57 yen at 0630 GMT, having slid two yen Tuesday, raising questions about the fragility of the U.S. currency. The euro was steady against the dollar, buying $1.494 and 125.96 yen.
Analysts estimated that every one-yen fall in the dollar costs Toyota, which reported strong half-year results on Wednesday, 20 billion to 25 billion yen ($182 million to $228 million) in operating profit.
"It's the flip side of Tuesday's (yen) rally," said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities Inc. "The market should gradually settle as more companies are unveiling strong earnings forecasts."
South Korean stocks gained 1.1 percent to 805, as foreigners bought banks and exporters. Top lender Kookmin Bank rose 3.7 percent and Hyundai Motor rose 3.1 percent.
RATE HIKE HITS STOCKS
Major Australian blue chips fell across the board, sending the market down 0.7 percent, after the central bank hiked its key overnight cash rate a quarter percentage point.
The markets debated both how quickly others, most notably the Bank of England, would follow, and how soon Australia would repeat the hike, given high consumer debt and a housing bubble.
ANZ led the banking sector lower with a 2.06 percent slide as investors worried the rate rise could slow home lending growth. Australia's fifth-largest bank, St George Bank, which earns one-fifth of its earnings from home loans, fell 2.4 percent despite a strong earnings announcement.
Media heavyweight News Corp dropped 0.93 percent, while resources giants Rio Tinto fell 1.25 percent and BHP Billiton eased 0.78 percent.
Hong Kong's benchmark Hang Seng Index ended the morning down 0.39 percent at 12,391.89 ahead of earnings from China's top PC maker Legend Holdings.
Singapore's Straits Times Index lost 0.7 percent, but Taiwan's TAIEX gained 0.55 percent, thanks to a rally in non-tech industrials such as cement companies.
Spot gold was testing a key resistance level at $380, which it touched briefly in New York.
NYMEX crude oil futures were steady at $28.81 a barrel after ending in the United States at their lowest in more than five weeks on expectations that weekly inventory data due on Wednesday would show that crude stocks rose last week.
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