Asia markets mixed, China slips

Hong Kong - Asian markets were mixed higher on Monday after the majority of eurozone banks were given a clean bill of health by the European Central Bank (ECB).

But China was hit by the postponement of a planned stock-trading connection between Hong Kong and Shanghai.

Tokyo ended up 0.63% at 15 388.72, Seoul climbed 0.33% to close at 1 931.97, and Sydney was up 0.86% to end at 5 459.0.

Shanghai dropped 0.51% to close at 2 290.44, while Hong Kong was down 0.68% to 23 143.23.

The Chinese markets were affected by the delay of the Shanghai-Hong Kong Stock Connect programme, which would enable international investors to trade selected stocks in Shanghai's tightly-restricted exchange, and allow mainland investors to buy stocks in Hong Kong.

The scheme was widely expected to be launched this week.

But Charles Li, the head of Hong Kong's stock exchange, said on Monday the tie-up had been postponed, and warned that pro-democracy protests that have gripped the city for the past month could have an impact on the scheme's progress.

Investors have also reportedly expressed concern about a lack of clarity on taxation and other costs relating to use of the platform.

Other markets were boosted by a stable euro after about 80% of eurozone banks passed the ECB health test, fuelling hopes that a major cause of economic uncertainty could soon be eliminated.

The common currency rose to $1.2704 and ¥137.14 in Tokyo afternoon trade from $1.2666 and ¥136.97 in New York on Friday afternoon.

In the most in-depth and stringent audit of eurozone banks ever undertaken - aimed at preventing a repeat of the crisis that nearly led to the euro's collapse - the ECB found that 25 out of a total 130 banks had a combined capital shortfall of €25bn at the end of 2013.

READ: ECB fails 25 banks in stress test

It was "positive" that the capital shortage was within expectations and all major banks cleared the stress tests, said Junichi Makino, chief economist at SMBC Nikko Securities.

"Risks that the European crisis will occur again are extremely low," he said in a note, adding the ECB has been supplying ample funds.

The dollar was at ¥107.94 from ¥108.14 in US trade on Friday afternoon.

US stocks on Friday capped a strong week on a high note as good earnings from Microsoft and others overshadowed a poor report from Amazon.

The Dow Jones Industrial Average gained 0.76% while the broad-based S&P 500 advanced 0.71%.

World oil prices were mixed Monday. The US benchmark West Texas Intermediate for delivery in December was up one cent to $81.02 a barrel in afternoon Asian trade, reversing earlier losses, while Brent crude for December eased 20c to $85.93.

Gold was at $1 230.40 an ounce against $1 233.37 late on Friday.

In other markets:

- Taipei dropped 18.23 point to 8 627.78.

Taiwan Semiconductor Manufacturing added 1.99% to Tw$128.0, while food giant Uni-President Enterprise was 7.0% limit-down to Tw$47.35.

- Wellington was closed for a public holiday.

- Manila fell 0.01% to 7 103.54.

Top-traded Philippine Long Distance Telephone fell 0.43% to 3 212 pesos, while Ayala Land lost 0.15% to 32.75 pesos.

- Singapore closed up 0.11% at 3 226.11.

Singapore Telecommunications rose 0.54% to Sg$3.72 while real estate developer Capitaland was up 2.95% at Sg$3.14.

- Jakarta ended down 0.96% at 5 024.29.

Bank Permata rose 1.02% to 1 485 rupiah, while state miner Aneka Tambang fell 1.56% to 945 rupiah.

- Kuala Lumpur gained 4.29 points to end at 1 823.15.

Telekom Malaysia rose 0.87% to 6.94 ringgit and Tenaga Nasional added 0.46% to 13.06 while Sime Darby lost 0.84% to 9.40 ringgit.

- Bangkok closed up 0.52% at 1 547.89.

Bangchak Petroleum added 3.01% to 34.25 baht, while Charoen Pokphand Foods fell 2.40% to 30.50 baht.

- Mumbai fell 0.37% to 26 752.90.

Bharat Heavy Electricals rose 4.98% to 252.00 rupees, while Hindustan Unilever fell 4.75% to 721.90 rupees.