Asian stocks mixed as recent gains add to caution that markets are overstretched

Asian stocks mixed amid caution after gains

HONG KONG — Asian stocks were mixed Wednesday amid investor caution following the recent advance in the region’s markets.

Japanese and Hong Kong markets fell while South Korea and Shanghai shares rose. Oil prices extended their climb and gold hit another record high, while the dollar slipped against the yen and the euro.

The sideways trade followed an erratic session on Wall Street and a string of gains in Asia as the weakening dollar increased investor appetite for stocks and commodities like gold and oil.

But after several indexes touched new highs for the year, investors have become worried about the market overheating and started to book profits.

There’s a lack of conviction among many investors about the market’s direction, analysts said.

“The markets are pretty much stretched,” said Belle Liang, head of research at Core Pacific-Yamaichi International. “It’s very hard to gauge where the market is going at this moment. You never know when the liquidity will dry up.”

Japan and Hong Kong led the region’s declines, with Tokyo’s Nikkei 225 stock average losing 53.13 points, or 0.6 percent, to 9,676.80 and Hong Kong’s Hang Seng shedding 14.82, or 0.1 percent, to 22,899.33.

Markets in India, Indonesia, Singapore and Thailand also fell.

Among higher markets, South Korea’s key index rose 1.1 percent to 1,603.97 and Shanghai’s benchmark was up 0.6 percent to 3,303.23. Shares in Taiwan and Australia were modestly higher as well.

Overnight in the U.S., the Dow Jones industrial average rose 30.46, or 0.3 percent, to 10,437.42.

The broader Standard & Poor’s 500 index rose 1.02, or 0.1 percent, to 1,110.32, while the Nasdaq composite index rose 5.93, or 0.3 percent, to 2,203.78.

U.S. futures pointed to a lower open Wednesday on Wall Street.

Oil prices extended gains, closing in on $80 barrel in Asia after an unexpected drop in U.S. crude supplies suggested demand could be improving.

Benchmark crude for December delivery was up 62 cents to $79.77 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 24 cents to settle at $79.14 on Tuesday.

Gold was trading up 0.1 percent at $1,139.5 after setting another record at $1,144.4

In currencies, the dollar fell to 89.15 yen from 89.24 yen. The euro rose to $1.4900 from $1.4874.