Asian stocks unsteady ahead of Bernanke speech

Asian stock markets were unsteady on Friday as investors waited to see whether Federal Reserve Chairman Ben Bernanke would promise new steps to help the US economy ward off another recession.Japans Nikkei 225 swung between gains and losses before hitting a plateau at 8,769.77. Hong Kongs Hang Seng gave up early gains and dipped 0.2 percent to 19,710.07 while Australias S&P/ASX 200 was 0.2 percent lower at 4,204.80. South Koreas Kospi rose 0.3 percent after a volatile morning to 1,770.03.Trading was jittery as investors waited to see if Bernanke offered more support for the US economy when he delivers a highly anticipated speech at a conference later Friday in Jackson Hole, Wyoming.The Fed has already pledged low interest rates through to 2013. Some central bank watchers say the Fed has already reached the limits of what a central bank should do to aid an economy that is beleaguered by problems that monetary policy cant fix high unemployment and massive government debt.The market is very volatile on low trading volume. Any news can be a big thing, said Jackson Wong, vice president at Tanrich Securities in Hong Kong.Worries that the US could be headed for another recession have in recent weeks caused huge volatility in equities, bonds and foreign exchange.Some shares weakened on the heels of disappointing earnings reports. Air China Ltd. slid 3.1 percent after the company on Friday announced its first-half profit fell 12 percent as soaring fuel costs offset strong revenue growth.PetroChina Ltd., Chinas biggest oil and gas company, dropped 1.8 percent, a day after the company said its first-half profit was nearly flat as losses in its refining business eroded gains from higher oil and gas output.But bank stocks got a boost after billionaire investor Warren Buffett said he would invest $5 billion in troubled Bank of America, the largest US bank.Industrial & Commercial Bank of China, the worlds biggest bank by market value, jumped 3.5 percent. Japans Mitsubishi UFJ Financial Group gained 0.3 percent.In Europe on Thursday, debate continued about the best way to resolve severe debt problems in several countries. Germanys main stock index, the DAX, plummeted 4 percent within 20 minutes before paring its losses and closing down 1.7 percent.The sudden move in one of Europes major markets apparently due to unfounded rumors that Germany was about to ban short-selling rattled investors and prompted some to buy gold, causing prices of the metal to rebound.As a result, gold-related shares saw their prices rise. Australias biggest gold miner, Newcrest Mining Ltd., rose 0.4 percent.On Thursday, the US government reported an increase in the number of people applying for unemployment benefits last week. The Labor Department said applications rose to 417,000, the highest in five weeks.The Dow Jones industrial average closed down or 1.5 percent at 11,149.82. The S&P 500 fell 1.6 percent to 1,159.27. The Nasdaq fell 1.9 percent to 2,419.63.In currency trade, the euro rose to $1.4416 from $1.4368 late in New York on Thursday. The dollar slipped to 77.27 yen from 77.55 yen.Benchmark oil for October delivery was down 21 cents to $85.09 in electronic trading on the New York Mercantile Exchange. Crude rose 14 cents to finish at $85.30 on Thursday. In London, Brent crude for October delivery was up 7 cents to $110.69 on the ICE Futures exchange.