Asian Stocks Finish Mostly Lower

Tomoko A. Hosaka

TOKYO -- Asian stocks ended mostly lower Wednesday with burgeoning optimism about a global economic recovery punctured by weak U.S. data.

Lethargic financial and tech shares dragged down the region's major markets including Tokyo, spoiling expectations for a sustained regional rally. Investors eager for good news may have jumped the gun in driving up prices recently, analysts said.

Wall Street on Tuesday shifted into reverse after the U.S. government reported a 1.1% slump in retail sales in March, an unexpectedly poor result that rattled hopes that the worst of the recession had passed. Investors watch retail sales trends closely as a barometer of consumer spending, which makes up two-thirds of the world's largest economy.

The sales data, combined with a sharp drop in wholesale prices, came just as the corporate earnings season got under way. The Dow Jones Industrial Average lost nearly 140 points.

Francis Lun, general manager at Fulbright Securities in Hong Kong, said investors are now focused on company results out of the U.S., particularly from banks.

"The market is prepared for (General Motors'(GM Quote)) funeral march, so we won't be surprised (by that)," Lun said. "The important thing is really for the banks to recover. If the banks can report strong first-quarter results, then I think it'll be OK."

But even then, he added, investors are "still worried that the economic data from the U.S. is still too bad."

Japan's benchmark Nikkei 225 stock average lost 1.1% to end at 8,742.96, while Hong Kong's Hang Seng index rose about 0.6%.