World markets mixed on Thanksgiving
LONDON -- World stock and commodity markets were mixed Thursday with U.S. markets closed for the Thanksgiving holiday.
Oil prices remained steady at around $97 a barrel, even though electronic trading in the U.S. continues.
In Europe, the benchmark FTSE 100 index gained 0.5 percent in London; Germany's DAX index climbed 0.2 percent and France's CAC 40 added 0.4 percent.
But in Asia it was a different story.
Most Asian markets fell, with shares in Hong Kong and Shanghai sliding sharply on concerns that Beijing will take steps to cool China's economy.
The region's biggest bourse in Tokyo ended mixed amid persistent worries over the outlook for the U.S. economy, a vital export market for Asia, after Wall Street dropped again overnight.
"There still is a lot of uncertainties in the U.S. economic outlook, as well as on China's macro policies, that could dampen buying interest in the near term," said Peter Lai, a director at DBS Vickers in Hong Kong.
In Hong Kong, the Hang Seng index sank 613.27 points, or 2.3 percent, to 26,004.92 after earlier rising as much as 1.4 percent. Leading decliners were port operator China Merchants Holdings and rival Cosco Pacific.
They were were also discouraged by economic data in the U.S. released Wednesday that showed a drop in consumer sentiment. The Dow Jones industrial average fell 1.62 percent Wednesday to 12,799.94.
Asian markets have been battered in recent weeks.
Since reaching record highs in October, benchmark indices in both Hong Kong and Shanghai -- two of the world's best-performing markets this year -- have fallen 17 percent. In Japan, the Topix index of all the issues of the Tokyo Stock Exchange's First Section, has declined nearly 21 percent from its 2007 high in February.
Some analysts see a buying opportunity.
"There are not enough factors to justify a further drop in Japan shares," said Yasushi Hoshi, strategist at Daiwa Securities in Tokyo.
On the Chinese mainland, the Shanghai Composite Index plunged 4.4 percent to 4,984.16 on expectations of further economy-cooling measures. Premier Wen Jiabao suggested earlier this week that China needs to do more to prevent a bubble in stock and property prices.
Concerns over PetroChina's valuation following its Nov. 5 trading debut, when it tripled from its initial public offering price, also dampened buying sentiment. PetroChina lost 4.6 percent Thursday.
Still, traders said the Shanghai index was unlikely to fall much further given the ample liquidity available for share dealings.
"What the market lacks isn't cash but confidence," said Simon Wang, an analyst at Xiangcai Securities.
In Tokyo, the benchmark Nikkei stock index rose 0.34 percent to 14,888.77 in a pre-holiday session as the dollar rebounded against the yen from a 2 1/2-year low hit overnight.
But concern over the exposure of insurance companies to the problems in the U.S. mortgage market dragged down the broader Topix index, which dipped 0.09 percent to 1,437.38 points.
Finance Minister Fukushiro Nukaga and Bank of Japan board member Seiji Nakamura both expressed concern about how problems in the U.S. economy might affect Japan. Traders said the market is especially sensitive to the health of consumer spending ahead of Christmas in the U.S.
In currency dealings, the U.S. dollar was trading at 109.00 yen midafternoon, up from 108.68 yen late Wednesday in New York. It dropped as low as 108.25 yen in the New York session. The euro rose to $1.4860 from $1.4848.
Financial markets in Japan will be closed Friday for the Labor Thanksgiving Day holiday. The markets will reopen on Nov. 26.