Most Asian markets fell Tuesday, but stocks in China and South Korea hit new record highs. The region's largest bourse in Japan ended flat for a second day as investors remained cautious ahead of earnings results to be announced in coming days, reported ap. Chinese shares ended at a new high, led by a fresh inflow of funds from retail investors, despite declines in large capitalized companies on valuation concerns limited the market's upside. The benchmark Shanghai Composite Index rose up 0.3 percent at 3,720.53, while the Shenzhen Composite Index rose 0.4 percent to 1,046.81. «The market is in need of consolidation, but in the run-up to the Labor Day holiday, it should stay relatively strong because of the abundant funds,» said Chen Jinren, an analyst at Huatai Securities. China's stock market will be closed from May 1 to May 7 for the Labor Day holiday. In South Korea, shares closed at a second straight record high on sharp gains in shipbuilders and steelmaker Posco. The world's third largest steelmaker, rose 3.2 percent on news that Woori Bank, the flagship unit of Woori Finance Holdings, and the National Agricultural Cooperative Federation may buy its shares to help the company fend off possible hostile merger-and-acquisition attempts. The Korea Composite Stock Price Index, or Kospi, rose 12.36 points, or 0.8 percent, to 1,556.71. But trading was lackluster in Japan and Hong Kong. Tokyo's benchmark Nikkei 225 index fell 3.60 points, or 0.02 percent, to finish at 17,451.77. Auto shares were mostly lower as expectations mounted they will forecast slower profit growth for the current financial year as sales slow overseas and increasing capital expenditures squeeze earnings. Toyota Motor Corp., which said Tuesday it became the world's top auto seller in the first quarter, passing rival General Motors Corp. for the first time, closed down 0.54 percent to 7,370 yen (US$62.46). Honda shed 1.21 percent to 4,070 yen (US$34.49). In Hong Kong, shares ended flat as weaknesses in blue chip financial companies offset gains in property stocks. The Hang Seng Index edged just 16.23 points, or 0.08 percent, higher to 20,572.80. «Momentum may pick up in the next two days when funds tied up in the IPOs flow back,» says UOB-KayHian's Steven Leung. Traders also expect the index to consolidate its recent gains ahead of April futures settlement Friday. China Molybdenum, the country's largest molybdenum miner, raised US$943 million (euro 695.32 million) from an initial public offering ahead of a listing in Hong Kong Thursday. In currency dealings, the U.S. dollar was trading at 118.60 yen late Tuesday, unchanged from late Monday in New York. The euro fell slightly to US$1.3563 from US$1.3573.
