AFP/Tokyo

Equities in Shanghai extended their rally yesterday on hopes for new economy-boosting measures from China, but Hong Kong and most other Asian markets retreated following more weak US data and losses on Wall Street.
The dollar lost ground as the chances of a summer US interest rate hike slimmed after disappointing jobs and housing figures, while the euro managed to hold up despite new worries about Greece’s eurozone future.
Shanghai rose 2.20%, or 92.47 points, to 4,287.30 but Hong Kong slid 0.31%, or 86.59 points, to 27,653.12.
Tokyo tumbled 1.17%, or 232.89 points, to close at 19,652.88, Sydney sank 1.28%, or 76points, to 5,871.50 and Seoul added 0.17%, or 3.60 points, to 2,143.50.
A string of poor Chinese indicators have fuelled a rally in Shanghai’s benchmark index over the past year and now mainland investors are turning their attention to Hong Kong, buying what they consider cheap assets.
The southward flood of cash saw turnover in Hong Kong hit record highs twice last week as traders make the most of a link-up between the city’s exchange and the bourse in Shanghai.
Wednesday’s news that the Chinese economy grew at its slowest quarterly pace in six years has reinforced expectations that Beijing will announce new easing measures.
The yen advanced against the dollar after US data showed housing starts rose less than expected in March, while initial jobless claims, a sign of the pace of layoffs, increased well above estimates to their highest level in six weeks.
In other markets, Singapore closed down 0.18%, or 6.42 points, to 3,525.19; oil rig maker Keppel Corp declined 2.01% to Sg$9.25 while public transport firm ComfortDelGro fell 1.70% to Sg$3.00.
Jakarta ended down 0.19%, or 10.09 points, at 5,410.64; lender Bank Tabungan Negara gained 2.56% to 1,200 rupiah, while property developer Summarecon Agung slipped 2.40% to 1,830 rupiah.
Malaysia’s main index lost 0.11%, or 2.08 points, to close at 1,845.86; Malayan Banking added 0.42% to 9.49 ringgit, Telekom Malaysia gained 0.68% to 7.35 while RHB Capital shed 0.51% to 7.84 ringgit.
Thai stocks edged down 0.20%, or 3.15 points, to close at 1,566.85; Krung Thai Bank lost 2.09% to 23.40 baht, while energy giant PTT gained 1.69% to 361baht.
Wellington fell 0.34%, or 20.28 points, to 5,861.48; Fletcher Building slipped 1.65% to NZ$8.35 and Spark was down 1.37% to NZ$2.89.
Taipei slipped 0.89%, or 85.94 points, to 9,570.93; Taiwan Semiconductor Manufacturing Co shed 3.06% to Tw$142.5 while smartphone maker HTC slipped 2.64% to Tw$129.0.
Manila was flat, edging down 1.31% to 7,946.89.
The Dow dipped 0.04%, the S&P 500 edged down 0.08% and the Nasdaq eased 0.06%.
The dollar bought ¥118.78 yesterday against ¥119.04 in New York but down from ¥119.33 in Tokyo earlier Thursday. A speech by Atlanta Fed chief Dennis Lockhart, a voting member of the Federal Open Market Committee, the central bank’s policy arm, also weighed on the dollar.
“A murky economic picture is not an ideal circumstance for making a major policy decision” on beginning to raise rates, he said, insisting he was presenting his own views and not speaking for the policy board or the Fed.
Bets earlier in the year had been on a rise as early as June as the economy showed signs of strength but those expectations have been all but erased following a recent run of downbeat figures.
The euro stood its ground despite worries over Greece after the International Monetary Fund refused to give it more time to repay its loans, while the country’s Prime Minister Alexis Tsipras said he was talking to the Orthodox Church about using clerical assets to boost state coffers.
The single currency fetched $1.07670 and ¥128.21 yesterday compared with $1.0761 and ¥128.10 in US trade.
Oil prices were lower after clocking up six consecutive days of gains on signs that US production may start easing.
US benchmark West Texas Intermediate for May delivery fell 54 cents to $56.17 and Brent crude for May tumbled 53 cents to $63.45.
Gold fetched $1,205.91 against $1,208.60 late Thursday.