Asian stocks mixed on economic hopes, profit-taking

Asian stocks closed mixed on Wednesday as hopes for a healing of the battered world economy buoyed some markets but profit-taking dragged others down, dealers said.

Tokyo rose 1.74 percent to a two-month high thanks to a weaker yen and optimism about spending plans to boost the US economy, but Hong Kong plunged 3.4 percent as Chinese telecoms and banking stocks pulled the index down.

Sydney gained one percent as strong commodities prices lifted resources companies, dealers said. Taipei rose 1.32 percent following gains on Wall Street overnight and elsewhere in Asia, dealers said, and South Korean shares closed 2.84 percent higher on hopes that stimulus plans will help the global economy.

"Expectations for (global) monetary and fiscal policies to stabilise financial markets and help economies recover seem to be masking fundamental concerns for now," Lee Yun-Hak, an analyst at Woori Investment and Securities, told Dow Jones Newswires.

Shanghai fell as telecom shares retreated on profit-taking, dealers said, after China issued long-awaited third-generation mobile phone licences - a move that will see tens of billions of dollars invested in new networks.

Banking stocks in China also declined after Bank of America said it was selling a chunk of its stake in China Construction Bank.

On Asia's leading stock market, Tokyo, observers said shares looked set to stay strong after a seven-day winning streak. "Unless a big negative surprise hits the market, Tokyo stocks will probably continue gaining near-term," said Hiroyuki Fukunaga, chief executive officer at Investrust. But analysts have warned that the economic outlook could smother the optimism. HONG KONG, (AFP)