Asian stock markets turn mixed amid US economic weakness; Tokyo off nearly 2 percent

Asian stocks mixed amid US economic weakness

HONG KONG — Asian stock markets turned in a mixed performance Thursday as signs of weakness in the U.S. economy aggravated worries about the strength of the global recovery.

It was the second day of middling trade in Asia and followed modest losses on Wall Street. Oil and gold prices were little changed, while the dollar fell against the yen and rose against the euro.

A recent rally that’s lifted several Asian benchmarks to new highs this month lost more steam after an unexpected drop in U.S. home building added to concerns a turnaround in the world’s largest economy will be tepid at best.

Also weighing on investors in Asia was news Japan’s Mitsubishi UFJ Financial Group, the country’s biggest bank, was seeking to raise some $11.2 billion to shore up its balance sheet. It was more evidence the financial sector has still not fully healed more than a year after the crisis erupted.

Daniel McCormack, a strategist for Macquarie Securities in Hong Kong, said the growing economic gloom was dulling the effects of easy money worldwide that has helped inflate stock prices this year.

“On one hand you’ve got fundamentals working against you. On the other hand you’ve got liquidity supporting the markets,” McCormack said. “The fundamentals are weakening, so I think things will drift sideways or lower.”

In Japan, the Nikkei 225 stock average lost 134.10 points, or 1.4 percent, to 9,542.70 and Hong Kong’s Hang Seng fell 121.18 points, or 0.5 percent, to 22,719.15.

China’s Shanghai market was fractionally lower, India’s key index lost 0.6 percent and Taiwan’s benchmark shed 0.1 percent.

Elsewhere, South Korea’s Kospi added 1.3 percent to lead the region. Markets in Singapore, Indonesia and Australia also gained.

Overnight in the U.S., the Dow fell 11.11, or 0.1 percent, to 10,426.31, after sliding as much as 77 points in morning trading.

The broader S&P 500 index slipped 0.52, or 0.1 percent, to 1,109.80, while the Nasdaq fell 10.64, or 0.5 percent, to 2,193.14.

Wall Street futures suggested a lower open Thursday. S&P futures were off 3.8, or 0.3 percent, at 1,104.70 and Dow futures fell 34, or 0.3 percent, to 10,370.

Oil prices hovered above $79 a barrel in Asia, with benchmark crude for December delivery down 13 cents to $79.45 a barrel. The contract rose 44 cents to settle at $79.58 on Wednesday.

The dollar fell to 89.12 yen from 89.34 yen. The euro was lower at $1.4912 from $1.4961.