Asian shares mostly lower; techs struggle in Seoul

Asian stock markets traded mostly lower Friday, with tech companies struggling in Seoul as investors digested a slew of corporate earnings, while Sydney shares continued to outperform amid recent upbeat economic data from China.

South Korea's Kospi (KR:SEU)  fell 0.8%, with the index's largest single constituent, Samsung Electronics (KR:005930)   (SSNLF)  , down 0.6% after it reported third-quarter net profit had risen 25.6% to another record high. Before the results, the stock enjoyed a strong run-up, and remains 5.3% higher so far in October.

Bloomberg

Also in Seoul, LG Electronics (KR:066570)   (LGEJY)  dropped 3.4% after it reported on Thursday a 34% decline in net profit over the same period.

In Hong Kong, China Unicom (HK:762)   (CHU)  added 1.2% after the firm reported a 51% increase in net profit for the third quarter. The company's results came days after China Mobile (HK:941)   (CHL)  reported a net-profit decline, prompting a sharp drop in the stock earlier in the week.

In Japan, Canon (JP:7751)   (CAJ)  fell 1% after it lowered its full-year net profit forecast to ¥240 billion from a previous estimate of ¥260 billion set in July. Mitsubishi Motors Corp. (JP:7211)   (MMTOF)  added 1.9% after the car company increased its profit outlook.

More broadly, the absence of fresh catalysts left regional markets to drift lower.

In Japan, the Nikkei Average remained under pressure from a yen that has firmed up in recent sessions. The Japanese currency (USDJPY)   maintained its strength, last at ¥97.36 to the dollar, helping to pull the Nikkei Average (JP:NIK)  down 1%.

Chinese markets were slightly lower, moderating after larger declines in the previous two sessions. Hong Kong's Hang Seng Index (HK:HSI)  lost 0.3%, and the Shanghai Composite (CN:SHCOMP)  was less than 0.1% down.

Click to Play China's smog expected to worsen

Coal burning from winter heating, vehicle emissions and crop burning are producing heavy smog in northern China. Jennifer Turner from the China Environment Forum discusses what's needed to clear the skies.

Australia, however, continued to edge higher, with the S&P/ASX 200 (AU:XJO)  up 0.4%.

Sydney's steady gains over the week made it one of the best performers, up 1.4% since last Friday, as the market hit a fresh five-year high. Sydney welcomed fresh signs of stabilization in China — its major trading partner.

At the end of last week, Chinese growth numbers showed a pick-up in the region's largest economy in the third quarter, and on Thursday, preliminary data on Chinese manufacturing reached a seven month high.

Although the positive effects of this data provided some support across the region, markets within China were more focused on a sharp rise in money-market rates, which brought back memories of a liquidity crisis earlier June. In addition, another increase in house prices raised concerns that Beijing could step in to cool down the market.

These fears combined to make Chinese stocks some of the worst performers for the week, with the Hang Seng Index down 2.3%, and the Shanghai Composite falling 1.5% over the same period.