Asian stocks slip as subprime fears return
Asian stocks closed mostly lower on Friday as investors locked in recent gains, with concerns re-emerging over the US subprime mortgage sector.
Regional trade was mostly subdued as players took a wait-and-see approach to further developments in the United States, in particular the release later Friday of US new home sales data.
The Chinese market provided a silver lining, however, as the benchmark Shanghai composite hit another record high on strong corporate earnings growth.
Global markets have taken a beating this month on fears that damage from default US subprime mortgages -- loans to customers with patchy credit histories -- will drain the cash flow to the broader economy.
Worries resurfaced Thursday after the head of Countrywide Financial, the biggest mortgage lender in the US, was quoted as saying the subprime problems would tip the world's largest economy into recession.
Asia's largest bourse in Tokyo fell 0.41 percent, although the benchmark Nikkei-225 index was still well above the key 16,000-point level which it regained in Thursday's strong rally.
Hong Kong shares were also soft, with the Hang Seng Index closing down 0.2 percent.
South Korea's KOSPI index ended 0.5 percent lower, but trimmed earlier losses with buying by retail investors offsetting continued selling by foreigners.
Australia's SP/ASX 200 fell 1.2 percent, but the index marked the strongest weekly rally in 32 years in the past week as many investors remained uneasy.
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