ASIA MARKETS: Asia Stocks Mostly Down After Weak U.S. Cues

By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) -- Most Asian markets declined Thursday as sentiment took hits from falling commodity prices and weak U.S. corporate results, with some technology stocks dropping after a sharp fall in Apple Inc. shares.

Mainland Chinese and Hong Kong stocks were supported by economic data showing an improvement in foreign direct investment inflows and home prices in China.

Japan's Nikkei Stock Average gave up 0.4%, Australia's S&P/ASX 200 dropped 0.7%, and South Korea's Kospi shed 0.3%.

"Once again, bottom-up views continue to miss analysts' lofty expectations," said IG Markets strategist Evan Lucas, referring to recent downbeat results, including from Dow industrial components Bank of America Corp. (BAC) on Wednesday and Intel Corp. (INTC) a day earlier.

China markets volatile

The Shanghai Composite Index and Hong Kong's Hang Seng Index briefly turned positive after the Chinese economic data, before sliding back again.

By the late morning, the Shanghai Composite was down 0.3%, while the Hang Seng Index was 0.2% lower after a four-day losing streak.

The foreign direct investment data showed flows into China rose to $12.4 billion in March, rising 5.7% from the year-ago period.

Property shares in particularly advanced in the wake of figures showing that new-home prices climbed in 68 of 70 top Chinese cities surveyed in March from levels seen in February, despite recent measures to further tighten policies on the property sector.

"The rolling out of property loan/price restrictions are clearly designed to take some of the froth out of the top end of the market, not intended to destroy the sector altogether," said Annette Beacher, head of Asia-Pacific research at TD Securities.

Shares of China Overseas Land & Investment Ltd. (CAOVY) climbed 2%, and China Resources Land Ltd. (CRBJF) gained 2.5% in Hong Kong, while Gemdale Corp. added 0.1% in Shanghai, and China Vanke Co. rose 0.3% in Shenzhen to support the respective markets.

The advance, however, contrasted with losses elsewhere in the region after a poor set of U.S. corporate earnings dragged on Wall Street overnight.

Several exporters and companies with a global exposure were pulled lower, with industrial-automation major Fanuc Corp. (FANUY) losing 2%, and camera maker Nikon Corp. (NINOY) shedding 1.6% in Tokyo.

Logistics firm Li & Fung Ltd. (LFUGY) dropped 0.8% in Hong Kong, and Hyundai Motor Co. (HYMTF) shrank 1.3% in Seoul.

Resource stocks came under renewed selling pressure as crude-oil and metals lost further ground.

Heavyweight miner BHP Billiton Ltd. (BHP) tumbled 3.3% in Sydney, as gold miner Zijin Mining Group Co. (601899.SH) lost 1.8% in Hong Kong and 0.6% in Shanghai. Steel maker Posco (PKX) gave up 0.9% in Seoul.

Some shares of technology firms in Apple's (AAPL) supply-chain suffered broad losses after stock in the iPhone maker dropped below $400 overnight, following a tepid revenue outlook from the company's chips supplier Cirrus Logic Inc.(CRUS).

LG Display Co. (LPL) lost 3.5% in Seoul, and Hon Hai Precision Industry Co. retreated 0.9% in Taipei, while Apple's partner Softbank Corp. (9984.TO) lost 1.7% in Tokyo.

Taiwan's Taiex rose 0.2% in choppy trade.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires