Asian stock markets mixed amid higher Japanese yen, Japanese leadership fight

Asian shares mixed amid higher yen

SEOUL, South Korea — Asian stock markets were mixed Tuesday despite a healthy gain on Wall Street as the dollar retreated to a new 15-year low against the yen and Japan’s prime minister survived a leadership challenge.

Japan’s Nikkei 225 stock average fell 0.2 percent to 9,299.31 points, a turnaround from a 1 percent jump on Monday as the yen rose and Japan awaited the results of a vote to select the head of the ruling party.

In Tokyo, Prime Minister Naoto Kan was re-elected as president of the ruling Democratic Party after the stock market closed. He survived a challenge by Ichiro Ozawa, a veteran powerbroker with a 40-year political career.

The victory means that Kan, who has been in office three months, will remain as prime minister, providing some continuity for a country that has seen five leadership changes in the past four years and is dealing with a surging yen and a spat with China over a collision near disputed islands.

The dollar traded at 83.33 yen after the result was announced, near the fresh 15-year low of 83.28 yen it hit in early trading. The U.S. currency traded at 83.71 yen late Monday in New York.

The dollar began faltering overnight in New York where investors sought out riskier bets on signs that growth in China is picking up.

In Tokyo, automakers and tech shares were hit by the yen’s climb, which prompted selling in exporters.

Toyota Motor Corp. was down 1.7 percent to 2,899 yen and Sony Corp. lost 0.7 percent to 2,494 yen. Toshiba Corp. fell 1.0 percent to 396 yen.

South Korea’s Kospi fell 0.2 percent to 1,815.25. Australia’s benchmark index was up 0.3 percent at 4,626.50.

Hong Kong’s Hang Seng gained 0.3 percent to 21,712.45. India’s benchmark Sensex was the strongest regional performer, gaining 0.7 percent to 19,334.52.

In New York Monday, the Dow Jones industrial average added 81.36 points to finish at 10,544.13, its eight gain in the past nine sessions.

Stocks rose after global regulators agreed to new rules for how much money banks must keep in reserves and China reported that industrial production rose.

Also fueling investor confidence were a flurry of new takeovers, seen as a sign of corporate optimism.

Hewlett-Packard Co. agreed to purchase security software provider ArcSight Inc. and Dollar Thrifty Automotive Group Inc. said it accepted Hertz Global Holdings Inc.’s acquisition offer.

Broader indexes also gained. The Standard & Poor’s 500 index rose 8.43, or 0.8 percent, to 1,117.98, while the Nasdaq composite index rose 30.99, or 1.4 percent, to 2,273.47.

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Associated Press writers Mari Yamaguchi and Shino Yuasa in Tokyo contributed to this report.