Asian stocks mostly down, oil up on Mideast fears

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In New Zealand the Wellington market posted a small gain in quiet trade as attention was focused on the rescue operation in Christchurch after an earthquake Tuesday left almost 400 people dead or missing.

Tokyo shed 0.80 per cent, or 85.60 points, to end at 10,579.10 and Hong Kong fell 0.43 per cent by the break.

Sydney eased 0.22 per cent, or 10.8 points, to close at 4,845.9 and Seoul was 0.42 per cent, or 8.29 points, off at 1,961.63.

However, Shanghai rose 0.38 per cent in the afternoon as miners were boosted by the rising price of gold as traders moved into the safe haven precious metal amid concerns over inflation and tension in North Africa and the Middle East.

Dealers extended losses after the previous day's slumps as the troubles across the region raised concerns over oil supplies.

Libyan leader Moamer Kadhafi Tuesday ordered his supporters to crush an uprising and warned he would fight to the death to remain in charge of the country he has ruled since 1969.

"This is my country, my country," he raged on national television. "I will fight to the last drop of my blood."

The violence across the country -- inspired by the toppling of the leaders of Tunisia and Egypt -- has seen scores of people killed at the hands of Kadhafi's henchmen, which has met with international outrage.

Uprisings have broken out across the region, including in Morocco, Yemen, Bahrain and Iran.

The troubles have kept oil at two-year highs, with Brent North Sea crude for April up 69 cents at $106.47 and New York's main contract, light sweet crude for April, 11 cents higher at $95.53.

However, further rises could be capped after Saudi Oil Minister Ali al-Naimi said the OPEC oil cartel would step in to meet any supply shortage caused by the turmoil.

Despite the sell-off Wednesday, Macquarie Private Wealth division director Martin Lakos in Sydney said heavier falls were unlikely.

"Most Asian equity markets have already seen a lot of de-risking because of the Libyan crisis, while Wall Street has played catch-up after the US holiday" on Monday, he said.

In New York the Dow Jones Industrial Average fell 1.44 per cent while the Nasdaq slipped 2.74 per cent Tuesday.

In Wellington shares edged up 0.40 per cent, or 13.36 points, to 3,372.06 in light trade after Tuesday's 6.3 magnitude earthquake in Christchurch.

Rescuers have recovered 75 bodies since the quake struck, and about 300 were still missing, officials said.

On currency markets the euro edged up amid growing concern over inflation in the eurozone, which heightens expectations for an interest rate hike.

"Recent remarks by ECB board members voicing concerns over inflationary pressure gave rise to a view that the ECB may implement policy to tackle inflation," said Yuichiro Harada, dealer at Mizuho Corporate Bank.

The single European currency climbed to $1.3690 in Tokyo afternoon trade from 1.3656 in New York late Tuesday. It rose to 113.05 yen from 113.02 yen.

Risk aversion caused by tensions in the Arab world pushed the dollar down against the Japanese unit, however, with the greenback edging down to 82.58 yen from 82.74 yen.

Gold opened at $1,397.00-$1,398.00 an ounce by the close in Hong Kong, up from Tuesday's finish of $1,400.00-$1,401.00.

In other markets:

-- Taipei fell 1.67 per cent, or 144.73 points, to 8,528.94.

Formosa Plastics Corp lost 4.08 per cent to Tw$98.8 while Taiwan Semiconductor Manufacturing Co was 2.07 per cent lower at Tw$71.0.

-- Manila fell 0.71 per cent, or 27.03 points, to 3,757.04.

Philippine Long Distance Telephone shed 1.67 per cent to 2,238 pesos and San Miguel fell 1.45 per cent to 170 pesos.