Asian markets widely down in quiet pre-holiday trade

Tokyo fell 0.23 per cent, or 24.05 points, to end at 10,346.48 after closing the previous day at a seven-month high while dealers were also hit by worse than expected export figures and a weak growth forecast.

Official trade data showed Japan's shipments in November rose 9.1 per cent from a year earlier compared with 7.8 per cent growth in October.

It was the first time in nine months that growth in the export sector, which is key to lifting the economy out of the doldrums, accelerated but the rate still fell short of market expectations for a rise of more than 10 per cent.

Later in the day the government forecast growth for fiscal 2011 of just 1.5 per cent, well down from the 3.1 per cent prediction for the current year to March 31.

The Cabinet Office added that consumer prices were likely to be unmoved in the 2011 fiscal year and despite halting the falls, deflation was not conquered.

The figures also came a day before a public holiday in Japan.

"It's a very difficult day to trade fresh positions ahead of tomorrow's public holiday," Kenichi Hirano, operating officer at Tachibana Securities, said.

Shanghai gave up 0.90 percent, or 26.21 points, to close at 2,877.90 after reports that the central bank was mulling methods to cap lending as it struggles to stem the flood of liquidity into the economy, which is helping fuel inflation.

"Besides more limits on the loans the banks can extend, (the report) also hints that banks may have to set aside greater provisions for their existing loans," Southwest Securities analyst Zhang Gang told Dow Jones Newswires.

The Shanghai market has recovered in recent weeks after suffering heavy selling amid fears China will raise interest rates to combat rising prices, which are at two-year highs and well above the government's target.

Hong Kong ended 0.22 per cent, or 51.33 points, higher at 23,045.19.

Seoul closed flat, edging up 1.02 points at 2,038.11 and Sydney edged up 0.14 per cent, or 6.5 points, to 4,778.4 as traders began winding down ahead of Christmas.

Markets, which had fallen on Monday amid concerns over tensions on the Korean peninsula, were given a cue from Wall Street, where the Dow jumped 0.48 per cent to a two-year high on the back of upbeat earnings.

The under-pressure euro clawed back from a record low against the Swiss franc in Asian trade as concerns over the eurozone debt crisis continued to linger.

Against the safe-haven Swiss unit, the single currency hit a fresh low of 1.2530 in early Asian trading before recovering to 1.2571.

It gained to $1.3127  in afternoon Tokyo trade from $1.3093  in New York late Tuesday and to 109.95 yen from 109.68 yen earlier.

The slip came after Moody's rating agency warned Tuesday it could downgrade Portugal due to its massive debt, while another agency, Fitch, said it could cut Greece to below investment grade.

After Greece and Ireland had to be bailed out this year other European members, mainly Portugal, Spain, Belgium and Italy are considered at risk in 2011.

"The euro is seen to stay weak as the sovereign debt problem will keep weighing on the currency," said Daisuke Karakama, market economist at Mizuho Corporate Bank.

The dollar fell to 83.76 yen from 83.90 yen.

Oil hit a two-year high as freezing weather across China and elsewhere in the northern hemisphere pushed up demand.

Brent North Sea crude for February delivery rose 15 cents to $93.35 per barrel in the afternoon after touching $93.49  in earlier trade -- its highest since October 2008.

New York's main contract, light sweet crude for delivery in February gained 12 cents to $89.94 .

"Oil prices remain supported on cold weather and strong demand indications, with Chinese oil demand, along with gasoline, diesel and jet fuel demand, surging to record highs in November," Barclays Capital said in a report.

Gold closed at 1,389.00- $1,390.00 an ounce in Hong Kong, up from Tuesday's close of 1,386.70-1,387.70.

In other markets:

-- Singapore closed up 0.14 per cent, or 4.46 points, at 3,144.31.

Wilmar International fell 5.07 per cent to 5.62 while DBS Group rose 0.70 per cent to 14.34.

-- Taipei rose 0.37 per cent, or 32.70 points, to 8,860.49.

Leading light emitting diode maker Epistar Corp closed 4.31 per cent higher at 104.0 Taiwan dollars while Neo Solar Power Corp added 1.39 per cent to 73.1.

-- Jakarta closed 0.46 per cent, or 16.76 points lower to 3,620.68.

Bank Central Asia fell three per cent to 6,450 rupiah, miner Bumi Resources lost 1.7 per cent to 2,975 and Telkom fell 1.3 per cent to 7,900.

-- Kuala Lumpur closed up 0.66 per cent, or 9.87 points, at 1,515.05.

Gaming giant Genting climbed 3.3 percent to 10.80 ringgit as mobile operator DiGi.com rose 3.6 percent to 25.90 and plantation firm Hap Seng slid 1.5 per cent to 6.40.

-- Manila gained 0.53 per cent, or 21.83 points, to 4,113.69.

Metropolitan Bank rose 1.2 per cent to 65.70 pesos, Philippine Long Distance Telephone added 1.0 percent to 2,552 and Megaworld was 1.7 percent higher at 2.41.

-- Wellington closed 0.10 per cent higher, adding 3.28 points to 3,322.38.

Fletcher Building rose 0.3 per cent to 7.79 New Zealand dollars, Contact Energy dipped 1.1 per cent to 6.17 and Telecom was down 0.5 percent at 2.22.

-- Bangkok rose 0.59 per cent, or 5.95 points, to 1,019.14.

Thailand's largest lender Bangkok Bank rose 2.00 baht to finish at 147.00 baht, but PTT Plc shed 3.00 baht to 320.00.

-- Mumbai fell 0.22 per cent, or 44.52 points, to 20,015.80.