Asian markets mixed, Tokyo hit by Softbank loss

Japanese shares were also hit by a plunge in telecom giant Softbank after it emerged it is eyeing a near $13 billion deal to buy Sprint Nextel of the United States, in what would be one of Japan's biggest ever overseas deals.

Tokyo closed 0.15 percent, or 12.66 points, lower at 8,534.12, Sydney was flat, edging up 3.1 points to 4,486.6 and Seoul was also almost unchanged, nudging 0.17 points higher to 1,933.26.

Hong Kong added 0.65 percent, or 137.38 points, to 21,136.43 and Shanghai gained 0.10 percent, or 2.06 points, to close at 2,104.94.

Hopes for the US economy were given a boost Thursday when the Labor Department said insurance benefits plunged unexpectedly last week to the lowest level since February 2008.

New jobless claims, a sign of the pace of layoffs, came in at 339,000 in the week to October 6, far below the previous week's 369,000 and the then four-week average of 375,500.

Those figures come on top of data last week showing the unemployment rate had fallen to 7.8 percent in September.

But on Wall Street the Dow fell 0.14 percent while the Nasdaq and S&P 500 were both flat.

Eyes are now on China, which will release on Saturday its trade figures for September, with investors hoping for an improvement on recent months that have revealed tumbling exports and imports as the demand in key markets dries up.

Beijing will on Monday release inflation data, followed by crucial gross domestic product figures.

Traders are also hoping leaders will soon introduce a fresh round of stimulus as a once-in-a-decade leadership transition approaches next month.

Investors are, however, still concerned after the International Monetary Fund this week slashed its growth forecasts across the world, citing the festering debt crisis in Europe, a stuttering recovery in the United States and a slowdown in China.

Adding to the worries is Spain's continued refusal to ask for a bailout from international lenders despite the terrible state of its finances.

In Tokyo, broad advances stoked by a weak yen were held back by a 16.68 percent slump in Softbank, the country's third biggest telecoms firm, after it said it was in talks to buy Sprint for $12.8 billion.

Kenji Shiomura, strategist at Daiwa Securities, said: "Investors were discouraged by the possibility that the company could be saddled with a heavy financial burden.

"Putting aside the point of whether the deal could be successful in the long run, the market is cautious."

On forex markets the euro benefited from increased risk sentiment. In afternoon trade it bought $1.2969, compared with $1.2926 late Thursday in New York, while it was also up at 101.72 yen from 101.25 yen.

The dollar gained to 78.44 yen from 78.33 yen.

Oil prices were mixed. New York's main contract, Nymex light sweet crude for delivery in November, rose nine cents to $92.16 a barrel while Brent North Sea crude for November delivery shed 26 cents to $115.45.

Gold was at $1,769.25 at 0830 GMT compared with $1,770.18 late on Thursday.

In other markets:

-- Taipei fell 0.20 percent, or 14.68 points, to 7,437.04.

TSMC rose 0.94 percent to Tw$86.3 while Chunghwa Telecom fell 0.64 percent to Tw$92.8.

-- Manila ended up 0.30 percent, or 16.25 points, at 5,369.72.

-- Wellington rose 0.34 percent, or 13.35 points, to 3,896.66.

Chorus added 0.6 percent to NZ$3.36 and Fletcher Building was up 0.1 percent at NZ$7.25.