Asian stock waver as investors await Bernanke’s speech amid recovery worries

Asian stocks mixed ahead of Bernanke’s speech

SHANGHAI — Asian markets wavered Friday as investors fretful over the pace of economic recovery awaited a speech later in the day by Federal Reserve Chairman Ben Bernanke, and the latest data on the state of the U.S. economy.

Global markets have been rattled in recent weeks by signs that the global economic recovery is losing momentum. Bernanke’s comments on the U.S. economy, the world’s largest, may give investors some insight into how deep the slowdown will be.

Japan’s benchmark Nikkei 225 stock average recovered from early losses on news that Prime Minister Naoto Kan plans to meet reporters later in the day to discuss how the government will handle the yen’s surge in value. By early afternoon the Nikkei was up 0.5 percent, or 48.27 points, to 8,952.87.

Japan’s finance minister has pledged to work more closely with the central bank to curb the yen’s rise, which is hammering the exports that are a key driver for its faltering economy. Also, the government said Friday that the jobless rate in July fell to 5.2 percent from 5.3 percent in June — the first decline in six months.

Chinese investors, disappointed with worst-than-expected earnings results, are also pulling back, analysts said, with the benchmark Shanghai Composite Index slipping 0.3 percent to 2,594.75.

“Investors are worried that profits will slow further in the third quarter,” said Peng Yunliang, an analyst with Shanghai Securities in Shanghai.

He said that comments by the main economic planning agency on strengthening price management were reviving worries over a surge in inflation.

Sentiment worldwide has been dampened by expectations the United States will revise down economic growth for the April-June quarter from an annual pace of 2.4 percent announced earlier.

Hong Kong’s Hang Seng fell 0.1 percent to 20,585.24. But Australia’s S&P/ASX 200 was 0.5 percent higher at 4,377.70 and Taiwan’s benchmark inched up 0.3 percent to 7,715.29.

Elsewhere, markets in Singapore and Malaysia were higher, while those in India, New Zealand and Indonesia fell.

In New York on Thursday, the Dow Jones industrial average fell 74.25 points, or 0.7 percent, to 9,985.81. The Dow had traded below 10,000 several times this week, but hadn’t closed below that level since July 6.

With many indicators, including housing sales, pointing to a slowing economic recovery, investors are hoping Bernanke’s speech may clarify how weak the U.S. economy is and what the Fed will do to revive it.

The U.S. is to release revised GDP data for the April-June quarter Friday.

In currencies, the dollar rose to 84.71 yen from 84.28 yen in New York late Thursday. The euro gained to $1.2729 from $1.2702.

Benchmark crude for October delivery was down 15 cents at $73.21 a barrel at midday Kuala Lumpur time in electronic trading on the New York Mercantile Exchange. The contract rose 84 cents to settle at $73.36 on Thursday.

Associated Press writer Shino Yuasa in Tokyo contributed to this report.