Asian Shares Give Up Early Gains In Thin Holiday Trade

(RTTNews) - Asian shares closed mostly lower on Monday as heightened expectations of another U.S. rate hike in April tempered the initial optimism over higher oil prices and better-than-expected U.S. GDP data for the October-December period. Trading volumes remained thin as markets in Australia, Hong Kong and New Zealand remained closed for the Easter Monday holiday.

U.S. economic growth slowed in the fourth quarter, but not as sharply as previously estimated, the third GDP estimate showed on Friday.

The world's largest economy grew at an annual rate of 1.4 percent in the last three months of 2015, compared to the second estimate and analyst expectation of 1 percent. While stronger household spending on services underpinned growth, corporate profits fell for a second straight quarter mainly due to the oil price crash.

The dollar firmed up against the yen in Asian deals and oil recovered from last week's decline, while China's yuan held near a three-week low following a softer official guidance rate.

Chinese shares surrendered early gains to end slightly lower, as losses in realty shares on reports of increased regulatory scrutiny of financing risk in the property market overshadowed initial optimism over the economy. The benchmark Shanghai Composite index fell 21.61 points or 0.73 percent to finish at 2,957.82.

Data released over the weekend showed that profits at Chinese industrial companies rose at their fastest pace in more than 18 months in the first two months of the year, despite weakening business conditions and slowing economic growth.

Japanese shares hit a two-week high as renewed weakness in the yen lifted shares of export-oriented companies. Mazda Motor, Nissan, Panasonic and Sony rose about 1 percent each as hawkish comments from Federal Reserve officials provided some support to the dollar against the yen.

The benchmark Nikkei average rose 131.62 points or 0.77 percent to 17,134.37, its highest level since March 14, while the broader Topix index closed 1.16 percent higher at 1,381.85. Sharp Corp climbed 4 percent after reports that a long-delayed takeover deal with Foxconn could materialize on March 31, a day after Hon Hai's board meets.

FamilyMart rose 1.2 percent on a Nikkei report that the convenience store operator will work with the Japan Post group to provide shipping between the company's domestic convenience stores and foreign destinations in Asia.

Seven & I Holdings advanced 2 percent after activist investor Daniel Loeb urged the board of retailer to select its new chief executive based on shareholders' interests.

Seoul shares erased early gains to end lower on foreign fund selling amid uncertainty over Fed policy. The benchmark Kospi average slipped 1.27 points or 0.06 percent to 1,982.54, with LG Chem and SK Hynix losing 1-2 percent.

Elsewhere, Indonesia's Jakarta Composite index was tumbling 1.3 percent, while the benchmark indexes in India, Malaysia, Singapore and Taiwan were down between 0.2 percent and 0.7 percent.

The stock markets in the U.S. and Europe were closed on Friday for the Good Friday holiday.

U.S. stocks ended flat to snap a five-week winning streak on Thursday, mirroring dollar strength and losses in commodities after Fed official James Bullard argued for a possible interest rate hike.

Fed Chair Janet Yellen as well as a few other Fed policymakers are due to speak on Tuesday and the all-important U.S. non-farm payroll report will be out on Friday, with investors waiting to see whether there is sufficient momentum in the U.S. economy to justify a rate hike as early as next month.