BANGKOK (AP) — Asian stocks were muted Wednesday as a weakening yen and hopes of more steps to prop up China’s growth were offset by pessimism over Europe’s debt crisis.
Benchmark oil hovered above $106 per barrel while the dollar rose against the euro and the yen.
Japan’s Nikkei 225 index added 0.8 percent to 9,540.78 while Hong Kong’s Hang Seng slipped marginally to 21,460.91. South Korea’s Kospi was down 0.2 percent to 2,021.41. Australia’s S&P/ASX 200 was slightly higher at 4,293.24.
Benchmarks in mainland China, Taiwan, Malaysia and the Philippines rose. New Zealand, Singapore and Indonesia fell.
The preliminary reading of HSBC’s China manufacturing indexrose from 48.8 in January to 49.7 in February. But the number was still below the 50-level that signifies expansion and suggested that the Chinese central bank may loosen credit — a move typically welcomed by markets.
Analysts at Barclays Capital in Hong Kong said the figure “will likely provide some comfort to the market” due to expectations that the People’s Bank of China will undertake further monetary easing in order to try to stimulate growth.
Elsewhere, Japanese exporters posted solid gains, boosted by a softening yen that raises the value of repatriated profits. The dollar rose to the 80-yen mark for the first time since Aug. 4 in midday Tokyo time, Kyodo News agency said.
Toyota Motor Corp. gained 1.8 percent, Mitsubishi Motors Corp. rose 2.1 percent and Nintendo Co. added 2.3 percent.
Meanwhile, investors continued to weigh whether a second, massive bailout for Greece would succeed in containing a two-year debt crisis dogging Europe.
Under a deal reached Tuesday after a 12-hour negotiating marathon in Brussels, Greece will get 130 billion euros ($172 billion) from other European nations and the International Monetary Fund to meet its immediate debt obligations. That was Greece’s second bailout following a 110 billion euros ($146 billion) rescue in 2010.
Separately, private investors in Greek bonds will be asked to forgive 107 billion euros in debt — a 53.5 percent loss on the face value of their bonds. Such action could dampen any willingness for future investments in debt-mired Greece.
It remains uncertain whether the deal will give Greece enough time to enact economic reforms and get back on the path to growth. Many hurdles remain.
“The positive reaction to the Greek bailout deal failed to gain traction leaving risk assets under a degree of pressure. The fact that the deal was highly expected played a role in the unenthusiastic reaction but markets may also be cautious given the major tasks that still (lie) ahead,” said analysts at Credit Agricole CIB in Hong Kong.
Budget cuts could keep Greece’s economy in deep recession instead of returning to growth in 2013, as the deal assumes. That would undermine chances of paying even the reduced debt load. Spending cuts could reduce tax revenue and possibly worsen the government’s finances.
The deal also doesn’t directly address the debt problems in other struggling countries that use the euro.
Airline stocks sagged as rising oil prices led to worries of higher fuel costs. Australia’s Qantas Airways lost 0.9 percent and Hong Kong-listed Air China was down 1 percent.
Also in Hong Kong, Alibaba.com soared 42.3 percent after its parent said it wants to take the Chinese e-commerce company private for $2.5 billion, part of a shift in business strategy that also includes plans to buy back a stake from Yahoo Inc.
Benchmark oil for April delivery was down 14 cents to $106.11 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose by $2.65 to finish at $106.25 per barrel on Tuesday.
In currencies, the euro fell to $1.3224 from $1.3244 late Tuesday in New York. The dollar rose to 80.06 yen from 79.71 yen.
