Asian Market News

LONDON (ShareCast) - The Nikkei edged higher Wednesday although caution remained as investors mulled a mixed batch of economic data from the US.

The benchmark Nikkei 225 (news) index rose 87 points to close at 9,840 in Tokyo.

Shares on the rise included Sanyo Electric (Berlin: SAE1.BE - news) , up over 6%, on news that it has signed a deal with US carmakers for its lithium-ion batteries.

GS Yuasa, which also makes batteries for electric cars, advanced 3% after it said it would boost its battery production for electric cars.

Daiwa Securities was also up after it said it would invest 10bn yen in DA Office Investment, according to newspaper reports.

However renewed caution about the global economic outlook stifled buyer appetite while a broad sell-off among commodities also weighed on the market.

Trading house Mitsubishi Corp (MBC.IL - news) , which makes more than half of its profit from commodities, fell 1.3% in Tokyo. Mitsui & (Munich: 853656 - news) amp; Co fell 1.5% to 1,174 yen.

Hong Kong's Hang Seng (news) trimmed earlier losses, finishing around 80 points lower helped by a last minute rally among financials.

Commodities weighed heavily on the index in Hong Kong while jitters about an economic recovery also kept the index lower. PetroChina fell 1.14%.

However late interest in HSBC (LSE: HSBA.L - news) , Bank of Communications, Bank of China and ICBC (0349.HK - news) took the Hang Seng off earlier lows.

China Life shrugged off earlier losses in a jittery session, to finish up 0.68%.

Elsewhere shares in metal producer Jiangxi Copper fell 3.3% as metal prices declined. China Resources Gas (1193.HK - news) fell as much as 13% after brokers Credit Suisse and Morgan Stanley (NYSE: MS - news) said they would sell their stakes in the firm.

Retailer Li & Fung fell a further 4% on Wednesday while mobile phone giant Foxconn fell 3.4% to HK$5.36.

The Hang Seng fell 80 points to 18,084.