Asian stocks mixed on concern about US recovery

BEIJING – Asian stocks were mixed Wednesday after more evidence that recovery in the world's biggest economy is set to be slow and bumpy.

Tokyo edged up while Hong Kong and Seoul declined after data showed the U.S. economy did not grow as quickly as previously forecast in the latest quarter. The Federal Reserve, meanwhile, said the recovery will be slow and unemployment will remain high.

Tokyo's Nikkei 225 was up 0.3 percent, or 27.28 points, at 9,428.86 points, while Hong Kong's Hang Seng Index lost 0.2 percent, or 41.23, to 22,381.91. Seoul's Kospi shed 0.1 percent, or 0.82, to 1,605.44.

Market momentum was weak as fund managers unloaded portions of their portfolios to lock in profits after months of liquidity-fueled gains, said Peter Lai, investment manager at DBS Vickers in Hong Kong.

"People are just waiting for some kind of catalyst to trigger profit-taking," Lai said. "The economic figures from the U.S. seem to be not that appealing."

The U.S. government revised its calculation of third-quarter economic growth down to 2.8 percent on Tuesday from its original estimate of 3.5 percent.

Meanwhile, the Conference Board said its Consumer Confidence Index rose to 49.5 in November from a revised reading of 48.7 in October. The report shows consumers remain gloomy heading into the holiday season. A reading above 90 means the economy is on solid footing.

The Fed said it expects the pace of recovery to be slow and said it is not expected to be strong enough to quickly drive down the jobless rate. In notes from a Nov. 3-4 meeting, most Fed policymakers said it could take "five or six years" for the economy and the labor market to be consistently healthy.

The Fed pledged to keep interest rates low but said high unemployment, slow income growth and hard-to-get credit will weigh on consumer spending. It said trouble in commercial real-estate will restrain the recovery.

The Dow Jones industrials fell 17.24, or 0.2 percent, to 10,433.71. The Standard & Poor's 500 index fell 0.59, or 0.1 percent, to 1,105.65, while the Nasdaq composite index fell 6.83, or 0.3 percent, to 2,169.18.

Asian investors also worry about U.S. consumer debt, Lai said. He said they are looking ahead to year-end credit card data that might show a rise in securitized debt, which some fear could lead to more financial problems.

"People are really worried about this credit card issue," he said.

China's benchmark Shanghai Composite Index was up 0.1 percent, or 3.84 points, at 3,227.37. Investors are concerned that Beijing's warning to banks to control lending might reduce liquidity that has boosted the market.

The Shenzhen Composite Index for China's smaller second market was up 0.7 percent, or 8.46 points, at 1,183.56.

Oil hovered above $76 a barrel in Asia. Benchmark crude for January delivery was up 21 cents at $76.23 a barrel. The contract fell $1.54 on Tuesday to settle at $76.02.

In currency markets, the dollar rose to 88.29 yen from 88.62 yen. The euro gained to $1.4989 from $1.4958.