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Market Update

Asian Stocks Mostly Lower; Shanghai Jumps

Asian markets were trading mostly lower Friday, following a weak lead from Wall Street overnight after lackluster economic data and some disappointing corporate earnings in the U.S. dented sentiment.

But Shanghai-listed shares soared, logging their biggest intraday rise since March 2009, following which the securities exchange ordered an investigation of the spike.

At the time of writing, the Shanghai Composite was trading 3.2% higher after bouncing as much as 5.6% earlier in the session. Hong Kong's Hang Seng added 0.5%.

Elsewhere, Japan's Nikkei lost 0.7% at 1:07 p.m. Tokyo time, Mumbai's Sensex dropped 1.2% while Australia's S&P/ASX All Ordinaries erased 0.6%.

In addition to a weak lead from U.S. stocks, investors were also worried about a possible early exit of the Federal Reserve's monetary stimulus program.

Stocks on the Move

Exporters in Tokyo moved lower as the yen grew stronger against the dollar amid ongoing concerns over economic growth and asset purchase program in the U.S. 

Nintendo Co. fell 2.3%, Sharp Corp. lost 2.2% and chip-maker Advantest Corp. retreated 2%.

But oil stocks bucked the trend -- Japan Petroleum gained 2.2% while Inpex Corp. rose over 1%.

On the mainland, PetroChina Co. bounced nearly 4% while China Petroleum & Chemical Corp. jumped over 3%.

Banking stocks also posted solid gains. ICBC, China Construction Bank, Agricultural Bank and Bank of Communications were trading around 4% to 5% higher.

Property developers Gemdale Corp. and Poly Real Estate vaulted more than 5% while the broader Shenzhen-listed China Vanke rose 4.8%.

Hong Kong listed metal players were also trading in the green; albeit with slim gains. Aluminum Corp. of China tacked on a percent while gold miner Zijin Mining rose 3.3%.

On the flip-side, shares in Mumbai slipped even as the rupee neared its record low. Banks were trading lower amid fears of action from the central bank to curb the rupee's slide.

ICICI Bank lost 4% while SBI and HDFC Bank erased 2.7% each.

Other losers included Tata Power (-4.7%), HDFC (-4.6%), Maruti Suzuki (-4.4%), BHEL (-4.2%) and Tata Steel (-3.8%).

In Sydney, ANZ said its net profit for the nine months through June rose 7% and offered a better outlook. Shares of the bank fell 2.4%, however.

Among others, Westpac Banking slipped 0.5% and NAB erased 0.8%.

In the mining segment, Fortescue Metals Group lost 3.5% amid news that a Taiwanese investing company has agreed to invest $1.15 billion in the miner's new iron-ore project.

Other miners were also trading lower -- BHP Billiton lost 1.7% after U.S. authorities have stepped up an investigation into potential breaches of anticorruption laws by the mining giant. Rio Tinto was trading down 2%.