Asian shares hit by Fed taper talk, Tokyo up on weak yen

Hong Kong (AFP) - Asian shares slipped Thursday after minutes from the Federal Reserve's latest meeting showed it was considering winding down its stimulus "in coming months".

But Tokyo rallied as the comments sent the dollar surging against the yen.

Tokyo's benchmark Nikkei 225 index gained 289.52 points to 15,365.60, its best finish since May 22, while the Topix index of all first-section issues was up 1.04 percent, or 12.88 points, at 1,246.31.

Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities, said: "For the mid-term through year-end, the market will be led by signs of Fed tapering, Christmas holiday sales figures, and US stock market strength."

There was little movement after the Bank of Japan said after a two-day meeting it would stand pat on its own stimulus programme, adding that the economy was recovering moderately.

Among exporters Honda jumped 3.41 percent to 4,240 yen and Kyocera rose 2.73 percent to 5,260 yen.

Electronics giant Sharp fell 0.66 percent to 297 yen on profit-taking and following a Nikkei report that the LCD panel maker has decided to reassess its partnership with Hon Hai Precision Industry of Taiwan.

Shanghai closed flat, dipping 0.48 points to 2,205.77 after a late rally, while Hong Kong's benchmark Hang Seng index lost 0.51 percent, or 120.57 points, to end at 23,580.29.

The two markets faced added selling pressure after HSBC said growth in Chinese manufacturing activity slowed in November.

In Hong Kong, Bank of China fell 0.80 percent to HK$3.70, China Resources Land lost 1.40 percent to HK$21.20 while China Coal Energy gained 3.04 percent to HK$5.09.

The Sydney market eased 0.37 percent, or 19.4 points, to 5,288.3 and Seoul fell 1.16 percent, or 23.46 points, to 1,993.78.

Expectations the Fed will be buying fewer bonds sent Treasury yields higher, which in turn boosted the dollar.

In Asian Tokyo trade the greenback climbed to 100.78 yen -- its highest since mid-July -- compared with 100.03 yen in New York Wednesday.

The euro fetched $1.3401 and 135.07 yen compared with $1.3435 and 134.40 yen.

In China, banking giant HSBC said its preliminary purchasing managers' index of manufacturing came in at 50.4, down from a final reading of 50.9 in October, which was a seven-month high. A reading above 50 indicates growth, while anything below signals contraction.

Citigroup economist Ding Shuang said: "It may indicate the recent rebound has peaked and in the following months we will see slower growth."

He added that the softer figures were likely to extend through all of next year.

Oil prices were mixed. New York's main contract, West Texas Intermediate for December delivery, rose 32 cents to $93.65. But Brent North Sea crude for January fell 25 cents to $107.81.

Gold fetched $1,247.52 per ounce at 1114 GMT compared with $1,271.42 on Wednesday.

In other markets:

-- Taipei fell 1.28 percent, or 105.01 points, to 8,099.45.

Taiwan Semiconductor Manufacturing Co. dropped 1.94 percent to Tw$101.0 while computer maker Acer rose 1.63 percent to Tw$15.6.

-- Manila lost 0.53 percent, or 32.45 points, to end at 6,122.89.

-- Wellington slipped 0.45 percent, or 22.00 points, to 4,818.37.

Air New Zealand shed 1.9 percent to NZ$1.54, Ryman Healthcare lost 0.6 percent to NZ$7.79 and Contact Energy was off 0.41 percent at NZ$4.90.

-- Jakarta fell 0.56 percent or 24.58 points to 4,326.21.

Miner Aneka Tambang gained 2.31 percent to 1,330 rupiah while Bank Permata lost 2.88 percent to 1,350 rupiah.

-- Kuala Lumpur fell 0.22 percent or 4.04 points to close at 1,794.65.

Plantation company Sime Darby shed 1.4 percent to 9.55 ringgit, while Axiata Group lost 0.5 percent to 6.70.

-- Bangkok lost 2.06 percent or 28.95 points to 1,375.86.

Airports of Thailand dropped 4.57 percent to 198.50 baht, while telecoms company True Corporation fell 4.47 percent to 8.55 baht

-- Singapore share prices fell 0.37 percent or 11.85 points to close at 3,172.38.

SingTel was up 0.54 percent at Sg$3.73 while Capitaland was down 0.33 percent at Sg$3.05.

-- Mumbai fell 1.97 percent or 406.08 points to end at 20,229.05 points

India's Future Retail fell 8.06 percent to 73.0 rupees and housing finance firm HDFC fell 3.61 percent to 779.4 rupees.