Asian Shares End Mixed; Shanghai Stks Hit Another High,+1.6%

Asian share markets ended mixed Monday, with losses in financial shares weighing Japan's benchmark index, while mining shares dragged Sydney lower after a report that China has ended its metal-stockpiling program.

The Shanghai Composite, however, ended at a fresh record high for the year, reflecting signs the economy is continuing to improve. The benchmark rose 1.6% to 2975.31, the highest closing level since June 11, 2008. The index also ended at a one-year high of 2928.21 on Friday.

"China has been recovering faster than the market had expected," wrote Merrill Lynch economists headed by Ting Lu in a research note Monday. "Except exports, almost all major macro indicators surprised to the upside in May, and the momentum could be maintained in June." Merrill Lynch revised its estimate for Chinese economic growth in the second quarter to 7.6% from 7.2%.

Hong Kong's Hang Seng index ended down 0.4% while Taiwan's Taiex closed off 1.1%. India's Sensex was up 0.1%.

Elsewhere, BHP Billiton ended down 0.8% in Sydney, leading a broad-based retreat among mining and resource shares following reports that China has ended its metal-stockpiling program.

Yu Dongming, chief of the metallurgical division in the National Development and Reform Commission's industry department, was cited by Caijing magazine as saying the policy had achieved its aims of raising market confidence, reducing stocks and stabilizing prices.

Rio Tinto retreated 1.4%, with the Sunday Telegraph in the U.K. reporting that Aluminum Corp. of China, or Chinalco, would take up its share of the miner's rights issue. A Chinalco executive declined to comment.

Paper shares outperformed, though, with falling crude oil prices in recent days easing some of the unease about material costs. Nippon Paper Group was up 3.1%.

Hong Kong property stocks underperformed after the Hang Seng property subindex gained 10.4% in the previous three sessions. Sun Hung Kai Properties slipped 0.7% with Sino Land off 1.6%.

But Lianhua Supermarket jumped 11.1% on news it would buy rival supermarket chain Hualian Supermarket Holdings from its controlling shareholder, though the deal is subject to government approval.

Spot gold was up $3.15 from New York levels, at $942.15 a troy ounce.

August Nymex crude oil futures were up 11 cents $69.27 a barrel.

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