Market Report - Asia Mixed; Oz Banks Eye Merger

ZHANG:
Asian shares were mixed on Monday. Trading was thin as Hong Kong and Seoul were closed for bank holidays.

Japan's benchmark Nikkei edged up 0.6 percent, as the yen retreated against the dollar. Exporters such as Sony gained, but financials extended losses from last week, with Japan's largest bank Mitsubishi UFJ falling 1.7 percent.

The dollar climbed back towards a two-month high versus a basket of currencies as weak economic data in Australia and New Zealand showed more signs of a global slowdown.

Oil rose to 126 dollars a barrel, holding close to a record high reached last Friday.

In financial news, Australia's Westpac is in takeover talks with St. George Bank in what could create the nation's biggest lender by capitalization.

In a takeover deal valued at $14 billion, Westpac said the combined bank, which would be No. 2 in assets, would have greater access to funding. The move, joining the nation's No. 4 and 5 banks, is seen as potentially leading others Australian banks to tie up.

Share trading in the banks was suspended after the announcement, but other sector financial stocks gained on speculation of more moves ahead. The S&P/ASX 200 ended 1 percent higher.

Category:

News & Politics

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