(RTTNews) - Asian stock markets are mostly down in the red on Thursday with investors treading cautiously on concerns over the pace of a global economic recovery. The start was fairly decent in most markets in the region, but stocks failed to gather enough support to sustain at higher levels. Lack of positive surprises from the U.S. Federal Reserve, which left key rates unchanged at historic levels and caution ahead of rate decisions by Bank of England and the European central bank appear to be holding the investors away on the sidelines.

The Australian market got off to a positive start but faltered soon as investors pressed sales in materials, technology and consumer staples stocks. Energy and bank stocks also surrendered early initiative and drifted lower.

The benchmark S&P/ASX 200 index is currently trading at 4,507, down 33.1 points, or 0.7%, from its previous close. The broader All Ordinaries index is down 28.6 points, or 0.6%, at 4,519.

In the banking space, Westpac Banking Corporation, National Australia Bank and Commonwealth Bank of Australia are trading modestly higher, while ANZ Bank is down with a loss of over 2.5%.

Top miners BHP Billiton and Rio Tinto are down 1.2% and 1.5% respectively. Newcrest Mining, Bluescope Steel and Incitec are also trading lower, while Fortescue Metals and Lihir Gold are up with modest gains. Orica is down with a 1.5% loss.
Among energy stocks, Woodside Petroleum is gaining over 2%. Origin Energy, Santos and Oil Search are down in the red with modest losses.

Leighton Holdings Ltd said its first-quarter revenue was up ten per cent at A$4.5 billion, with full year revenue on track to exceed A$19 billion. With the core operating businesses remaining strong, the group generated a profit after tax of A$131 million, an increase of 25% on the prior-year first quarter. Full-year net profit is expected to be about A$600 million, up from last financial year’s A$440 million. The company says work in hand as at September 30 was A$38.3 billion. The stock is currently trading with a modest loss.

Shares of News Corporation are trading over 4% up on strong financial results. The media giant reported a sharp 11% rise in first-quarter net profit and said its operations are well placed to take advantage of improving global conditions. The company reported net profit of US$571 million for the three months to September 30, compared with US$515 million in the prior-year corresponding period.

On the economic front, the Australian balance of goods and services was a deficit of A$1.849 billion in September, seasonally adjusted, compared to a deficit of A$1.651 billion in August, according to data released by the Australian Bureau of Statistics. During the month, exports were up 5% in adjusted terms, while imports rose 5%.

In the currency market, the Australian dollar opened higher with investors moving away from the U.S. dollar after the Federal Reserve opted to keep its target interest rate on hold. In early trades, the Aussie was quoting at US$0.9138-US$0.9139, up from Wednesday’s close of US$0.9014-US$0.9016.

In Tokyo, stock prices drifted lower with investors choosing to wait for earnings report from automobile giant Toyota Motor and the data on U.S. jobs.

The benchmark Nikkei 225 index, which opened lower by around 41 points at 9,803 and dropped down to 9,719, was down with a loss of 113.63 points, or 1.15%, at 9,730.68 at the end of the morning session.

Bank stocks were trading mixed. Machinery and electric machinery stocks also exhibited a mixed trend. Steel and non-ferrous metals stocks were mostly down in the red. Food, chemicals and pharmaceuticals stocks were also mostly trading weak.

After an initial upward move on the back of stronger-than-expected results, Nissan Motor pared some gains and was trading modestly higher than its previous closing price at the end of the morning session.

Buoyed by a weaker yen and reports that the company will set up a research and development base in China as early as 2010, shares of automobile major Toyota Motor Corp. rallied higher in early trades. However, due to resistance at higher levels, the stock has drifted down into the red subsequently.

Shares of Japan Airlines Corp. were trading lower following Standard & Poor’s lowering the long-term rating on the ailing carrier from B- to CCC, and its rating on long-term senior debt from B to CCC+. The S&P also said it will retain the carrier on CreditWatch with negative implications.

Sanyo Electric Co. shares plunged more than 25% in early trades Thursday after Panasonic Corp. said the previous evening that it will offer 131 yen per share in its tender offer as planned earlier.

In the currency market, the U.S. dollar traded in the upper 90 yen range early Thursday in Tokyo after climbing to the lower 91 yen level overnight in New York on the U.S. Federal Reserve’s decision to leave its monetary policy unchanged. In early trades, the dollar fetched 90.68-90.70 yen against Wednesday’s close of 90.69-90.79 yen in New York and 90.55-90.56 yen in Tokyo.

Technology and shipbuilding stocks are among the prominent losers in the South Korean market, which is trading in the red with a sharp loss on doubts over an economic recovery.

The benchmark KOSPI index, which opened at 1,568.7 and dropped down to 1,556.3 subsequently, is currently trading at 1,559, down 20.9 points, or 1.32%, from its previous close.

Tech heavyweight Samsung Electronics is trading lower by about 1.7%. LG Electronics is trading 2.3% down and Hynix Semiconductor is down with a loss of 1.8%, while LG Display LCD is trading flat.

In the shipping space, Daewoo Shipbuilding, Samsung Heavy Industries and Hyundai Heavy Industries are trading lower by 1.8%-2.3%, while bulk carrier STX Pan Ocean is down with a loss of 1.4%.

Among bank stocks, Woori Finance is gaining about 2.3% and Korea Exchange Bank is trading modestly higher, while KB Financial and Shinhan Financial are trading weak.

Among automobile stocks, Ssangyong Motor is up 1.5%, while Kia Motor and Hyundai Motor are trading lower by 0.5% and 2.3% respectively. Airlines, telecom oil and steel stocks are exhibiting weakness.

In economic news, South Korea’s exports to China in October increased 9.7% from a year earlier, gaining for a second consecutive month.

In the currency market, the the won moved up to 1,170.90 against the dollar in early trades, but pared gains subsequently.

Among other markets in the Asia-Pacific region, Hong Kong, New Zealand and Singapore are trading notably lower. Shanghai, Indonesia and Taiwan are down with modest losses. Markets in the region had closed moderately higher on Wednesday.

On Wall Street, stocks ended on a mixed note for a second straight session on Wednesday, giving up earlier gains following news that the Federal Reserve left interest rates near record lows amid continued economic concerns.

The choppy trading came after the Fed left its target for the federal funds rate unchanged in a range from zero to a quarter percent and reiterated its assessment that “exceptionally” low rates will continue for an “extended period.”

The major averages all saw notable downside in late day trading, pushing the tech-heavy Nasdaq into negative territory. The Nasdaq closed lower by 1.8 points, or 0.1%, at 2,055.5, while the Dow moved up 30.2 points, or 0.3%, to 9,802.1 and the S&P 500 gained 1.1 points, or 0.1% to close at 1,046.5.

Major European markets moved notably higher on Wednesday. U.K.’s FTSE 100 and the German DAX index gained 1.4% and 1.7% respectively, while the French CAC 40 index moved up 2.4%.

Crude oil prices rallied above US$80 per barrel on Wednesday after the Energy Information Administration reported a drop in weekly inventories. Light sweet crude for December finished at US$80.40 per barrel, up 80 cents for the session.

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