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Asian Stocks Trading Narrowly Mixed

The Associated Press

HONG KONG -- Asian stocks were narrowly mixed Friday amid more corporate gloom and worries that a key U.S. jobs report could show the recession in the world's largest economy is deepening.

Trading fluctuated in a number of markets as investors awaited closely watched non-farm payrolls data, due out later in the U.S., that's expected to show massive job losses -- as many as half a million or more -- in December as a weakening economy led employers to lay off workers and curb hiring.

Dismal corporate news out of Asia also weighed on investors.

In Japan, electronics component maker TDK(TDK Quote) said late Thursday it would cut 8,000 workers and post its biggest net loss ever this fiscal year. South Korean automaker Ssangyong Motor announced Friday it applied for protection from creditors amid the credit crisis to buy time to restructure, calling the move an "unavoidable choice."

"Basically there's not much direction," said Francis Lun, general manager of Fulbright Securities Ltd. in Hong Kong. "People still fear the market will go down. All the economic figures show the global economic is in a mess. It's not going to climb out anytime soon."

Tokyo's Nikkei 225 stock average moved in and out of the green, trading down 0.05% to 8872.18. Hong Kong's Hang Seng index, briefly in negative territory, recovered to gain 1.2%, amid what analysts said was speculation about central government aid for the power sector.

In South Korea, the Kospi shed 0.7% as the country's central bank cut its key interest rate for the fifth time in just three months to help shore up the country's sagging economy. The benchmark index in Australia gained 1.1%.

Wall Street closed mixed Thursday after lawmakers and Citigroup(C Quote) worked out a deal that could support the battered housing sector by limiting the number of mortgage foreclosures.

Wal-Mart (WMT Quote) heightened fears that consumers are faring worse than expected as it issued a profit warning and reported dismal sales in December.

The Dow Jones Industrial Average ended down 27.24, or 0.31%, at 8,742.46 after being down as much as 119, but broader stock indicators advanced. The S&P 500 index rose 3.08, or 0.34%.

U.S. futures pointed to modest gains on Wall Street's ahead of the government jobs report. Economists say the report could show the U.S. unemployment rate jumped from 6.7% in November to 7% in December, which would be the highest in 15 1/2 years.

Oil prices recovered, with light, sweet crude for February delivery up 65 cents to $42.35 a barrel in electronic trading on the New York Mercantile Exchange. The contract overnight fell 93 cents to settle at $41.70.