ASIA MARKETS: Japan Stocks Slip, But Australia Rises

By Michael Kitchen, MarketWatch

LOS ANGELES (MarketWatch) -- Japanese stocks fell Friday, extending losses into a second day after sharp gains earlier in the week, while Australian shares inched higher, helped by strength for some miners.

The moves came as Hong Kong and South Korean markets were closed for holidays, reportedly curbing trading volumes in bourses that were open.

Japan's Nikkei Stock Average moved off opening lows but still traded with a 0.2% loss in early morning action, adding to Thursday's 0.4% retreat, which had followed a major jump of 2.3% on Wednesday.

Losses for Wall Street overnight helped dampen sentiment, with the S&P 500 (SPX) down 0.5% after a Federal Reserve official tipped a pullback in the central bank's easing programs could come as soon as this summer.

Tech-sector blue chips were among the leading decliners, with Advantest Corp. (ATE) down 4.2%, Pioneer Corp. (6773.TO) tumbling 4.6%, and Tokyo Electron Ltd. (8035.TO) shooting 4.4% lower, back to levels seen at the start of the week.

Sony Corp. (SNE) dropped 2.6% after NPD Group data late Thursday showed April U.S. videogame-console sales plunging 42% from year-earlier levels as consumers awaited new devices from Sony and rivals Microsoft Corp. (MSFT) and Nintendo Co. (NTDOF). Shares of Nintendo traded 1.4% lower.

Other significant losses for blue-chip issues included a 2.6% drop for Mazda Motor Corp. (7261.TO), a 3% loss for J. Front Retailing Co. , and a 3.1% drubbing for recently volatile shares of Sharp Corp. (SHCAF).

Among the advancers, Hitachi Ltd. (HIT) rose 1.9% after the conglomerate forecast earnings for the 2015-16 fiscal year that bested analyst expectations.

Sydney noses higher

Over in Australia, the benchmark S&P/ASX 200 crawled 0.1% higher, helped by strength in some major mining and banking names.

Senior miners BHP Billiton Ltd. (BHP) and Rio Tinto Ltd. (RIO) added 1.5% and 0.4%, respectively, after a 0.9% advance for July copper futures overnight. Uranium extractor Paladin Energy Ltd. (PDN.T) rose 1.9%, while Alumina Ltd. (AWC) added 1%, though losses for gold futures helped drive Newcrest Mining Ltd. (NCMGF) shares 2.4% lower.

"If commodity prices remain supported in the Asian trading session, Australian stocks should hold near current levels and halt recent weaknesses," wrote Rivkin global analyst Tim Radford just ahead of the market open. The ASX 200 had ended Thursday with a 0.5% loss, after falling 0.6% on Wednesday.

Among financials, Commonwealth Bank of Australia (CBAUY) -- the ASX 200's most heavily weighted component -- gained 0.7%, while Macquarie Group Ltd. (MCQEF) improved by 0.9% and insurer QBE Insurance Group Ltd. (QBIEY) rose 1.4%.

Shares of Virgin Australia Holdings Ltd. (VBHLF) jumped 7.9% higher after 17% crash in the previous session on the back of a profit warning. Helping boost the airline operator, both UBS and J.P. Morgan raised their ratings on the shares to buy and overweight, respectively.

However, a profit warning at energy firm WorleyParsons Ltd. (WOR.AU) sent that stock falling 15% in Sydney.

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