Published: Tuesday, 3 Nov 2009 | 5:30 AM ET

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Asian shares finished broadly lower Tuesday despite a positive close on Wall Street. Trading was subdued with Japan markets closed for a national holiday.

Australian shares dipped 0.2 percent, with investors concerned about a shaky global economic recovery and tempted to wager on the nation's most famous horse race instead.

A 0.25 percentage-point rise in Australian interest rates to 3.5 percent was as expected by most in the market, while gold miners lent support after the price of the precious metal rose close to record highs.

"The interest rate decision today sparked a bit of interest but it was a pretty quiet day all round," said James Foulsham, head of trading at CMC Markets, who like many in the market was focused on the Melbourne Cup, which run just before the market closed.

QBE Insurance was among the biggest decliners after it said in an investor update on Monday that gross written premiums would rise less than previously forecast in 2009. Its shares fell 3.9 percent to A$21.29.

Westpac Banking Group fell 0.6 percent to A$25.43. It said it would appeal a New Zealand court decision last month that meant it faces a NZ$918 million ($664 million) tax bill over
structured finance transactions.

Department store chain Myer recovered some ground after its plunge on debut on Monday, ending up 1.6 percent at A$3.81, but still well below its initial offer price of A$4.10.

Contractor MacMahon Holdings jumped 7.5 percent to A$0.57 after it said it had extended an agreement with Leighton Holdings on partnering in infrastructure projects. Leighton rose 1.4 percent to A$34.83.

South Korea, Taiwan Down

Seoul shares ended 0.6 percent lower, led by falls in technology and banking issues
including Shinhan Financial, but gains in retail and defensive shares such as KT lent support.

The Korea Composite Stock Price Index (KOSPI) shed 0.59 percent to finish at 1,549.92.

Taiwan stocks slipped 0.17 percent on Tuesday to a fresh one-month closing low as investors pocketed gains in technology companies such as Hon Hai, which have benefitted from solid quarterly earnings.

The main TAIEX share index finished 12.25 points lower at 7,322.93, extending a five-session losing streak.

TSMC and its smaller rival UMC, the world's two largest contract chip makers, fell 1 percent and 1.88 percent, respectively. The semiconductor sub-index slipped 0.57 percent. 

Construction shares fell on a media report that Taiwan may levy higher land value taxes on property owners who do not live on site, as part of an effort to curb speculation in the housing market.

Real estate developer Farglory slipped 0.74 percent, while the construction sub-index dropped 1.94 percent.

China Bucks Down Trend to Finish Higher

China's key stock index rose 1.22 percent in active trade, with metal and brokerage shares firmer as signs of growth in bank lending lifted optimimism for sustained economic growth despite new share offers.

The Shanghai Composite Index ended at 3,114.227 points, its highest close since Aug. 13.

Gaining Shanghai A shares overwhelmed losers by 819 to 76, while turnover picked up to a six-week high of 170 billion yuan ($24.9 billion) from Monday's 154 billion yuan.

The Nasdaq-style ChiNext market for start-up stocks, which began trade last Friday with a speculative surge, ended mostly weaker on profit-taking for a second day after two-thirds of its 28 stocks fell by their 10 percent daily limit on Monday.

Analysts said optimism about the outlook for economic recovery and expectations of continued strong earnings growth in the fourth quarter boosted market sentiment.

The official China Securities Journal cited a research report from China Construction Bank forecasting that China's economic growth in the fourth quarter was likely to exceed 10 percent on the year, with full-year GDP growth seen at 8.3 percent.

The newspaper also reported that China's top four state-owned commercial banks extended about 136 billion yuan in new loans in October, up 23 percent from a month earlier.

Another major official newspaper, the Shanghai Securities News, said new bank lending in China may have hit 300 billion to 400 billion yuan in October, broadly in line with market expectations. 

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