Asian shares mixed in cautious trade

A report from the US Federal Reserve confirming the world's biggest economy was on a good recovery track, and President Barack Obama's plan to scythe spending did little to move investors.

Tokyo ended 0.13 per cent, or 12.74 points, higher at 9,653.92 and Seoul gained 0.90 per cent, or 19.14 points, to 2,141.06, a record high.

However, Sydney closed 0.55 per cent down, losing 26.8 points, at 4,884.2.

Hong Kong gave up 0.50 per cent, or 121.03 points, to close at 24,014.00 and Shanghai fell 0.25 per cent, or 7.76 points, to 3,042.64.

Markets have been volatile this week after Japan suffered several strong aftershocks from the March 11 earthquake and tsunami, raising fears over a crippled nuclear power plant.

"The market energy is expected to be weak as investors await Japan's corporate earnings and amid concerns about progress in the nuclear reactor issues and aftershocks," Hiroichi Nishi, a general manager at SMBC Nikko Securities, said.

Dealers in Japan were nervously awaiting the latest round of corporate results, which will give an indication of the economic impact of the March 11 quake and tsunami disaster.

"Investors can hardly move amid so many uncertain factors for the current business year," Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management told Dow Jones Newswires.

Tokyo was also weighed by a stronger yen versus the dollar.

The Japanese unit rose to 83.65 against the dollar from 83.79 in New York Wednesday, although it eased to 121.26 to the euro, from 120.98 in New York.

The euro stood at $1.4493 from $1.4440.

The Fed's Beige Book on the state of the economy confirmed it was growing on a broad base around the country, though at an "only moderate" pace in many regions.

"Higher commodity costs were widely reported to be putting increasing pressures on prices," the bank said.

At the same time Obama outlined a plan to reduce the US deficit by $4 trillion but said he would wield a "scalpel and not a machete" on health care, the military and some bedrock social programmes.

However, the news made little impact on stocks, while the Dow Jones Industrial Average closed flat.

ANZ Bank senior economist Khoon Goh in Wellington said: "The earnings reporting season does not look likely to spark a fresh rally in (US) equities, and the run of upside surprises to US economic data looks to be nearing its end, though this has more to do with improved expectations as opposed to poor data."

Singapore fell 0.41 per cent, or 13.16 points, to 3,158.92 as the city-state tightened its monetary policy after posting strong first quarter growth of 8.5 percent and amid concerns over inflation.

The decision saw the Singapore dollar surge against the greenback, hitting Sg$1.2453 before easing to Sg$1.2510.

Meanwhile commodities giant Glencore said it plans to raise up to $11 billion in a dual public listing in London and Hong Kong.

The world's largest commodities trader by revenue expects to sell 2.5-10 percent of the offering to Hong Kong retail investors and will set an indicative price range for the shares around May 4.

Oil was mixed amid concerns the recent surges could have a negative effect on global growth.

New York's main contract, light sweet crude for delivery in May, rose 37 cents to $107.48 a barrel in the afternoon and Brent North Sea crude for May shed 38 cents to $122.50.

Ong Yi Ling, investment analyst for Phillip Futures in Singapore said sentiment was "not as bullish as before and crude oil could continue to dip slightly, looking for support at $105 per barrel".

Gold closed at $1,462.50-$1,463.50 an ounce in Hong Kong, down from Wednesday's close of $1,457.00-$1,458.00.

In other markets:

-- Taipei closed 0.26 per cent, or 22.53 points, higher at 8,802.73.

Hon Hai was up 1.88 per cent at Tw$108.5 while Taiwan Semiconductor Manufacturing Co fell 1.27 per cent to Tw$69.8.

-- Manila gained 0.74 per cent, or 31.28 points, to 4,234.96.

-- Wellington closed flat, edging down 3.15 points to 3,454.48.

Fletcher Building fell 1 per cent to NZ$9.19 and clothing retailer Hallenstein Glasson closed up 5 per cent at NZ$4.00.

-- Kuala Lumpur closed down 0.64 per cent or 9.79 points at 1,525.80.

Construction firm Gamuda fell 3.4 per cent to 3.73 ringgit, carmaker Proton dipped 3.3 per cent to 3.25 and power giant Tenaga Nasional shed 1.8 per cent to 6.06 ringgit.

-- Jakarta fell 0.71 per cent, or 26.43 points to 3,707.97.

Car distributor Astra International shed 2.2 per cent to 54,850 rupiah and cigarette maker Gudang Garam dropped 1.4 per cent to 40,400 rupiah.

-- Bangkok and Mumbai were closed for public holidays.