Asia stocks mixed on Bernanke economy view (AP)

SINGAPORE – Asian stock markets were mixed Thursday as traders mulled comments by U.S. Federal Reserve Chairman Ben Bernanke that suggested the world’s largest economy faces a slow recovery.

Bernanke told a congressional committee that the economic outlook is “unusually uncertain” and the economy is fragile. He did not forecast that it would fall back into recession.

Some analysts worry that slowing economic growth in developed countries in the second half will undermine demand for Asian exports and hurt company earnings.

“We’re bearish for the rest of the year,” said Tey Tze Ming, a trader at Saxo Capital Markets in Singapore. “We have a bleak economic outlook on the U.S. and Europe and it’s hard to see Asian stocks doing well in that context.”

Japan led decliners, with its benchmark Nikkei 225 stock average slipping 0.5 percent to 9,229.42 while South Korea’s Kospi fell 0.7 percent to 1,736.72. Hong Kong’s Hang Seng dropped 0.2 percent to 20,449.94. Markets in India and Malaysia were also lower.

China’s Shanghai benchmark index rose 0.6 percent to 2,551.71 while Thailand, Singapore and Indonesia all gained less than 1 percent.

Bernanke’s comments sent the Dow Jones industrial average down 1.1 percent to 10,120.53 on Wednesday, while the broader Standard & Poor’s 500 index fell 1.3 percent to 1,069.59. Interest rates dropped in the Treasuries market as investors sought a safer haven.

In currencies, the dollar slipped to 86.52 yen from 86.93 yen in New York late Wednesday. The euro rose to $1.2776 from $1.2763.

Benchmark crude for September delivery was off 29 cents to $76.27 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.02 to settle at $76.56 on Wednesday.