HONG KONG, Nov 06, 2013 (AFP) Asian stocks were mixed Wednesday although Tokyo was lifted by strong corporate sentiment, while upbeat US service-sector data added to speculation the Federal Reserve will soon start tapering off its stimulus.
The euro rose following early losses which were sparked by an official downgrade of eurozone economic growth for 2014.
Tokyo finished 0.79 percent higher, adding 111.94 points to 14,337.31 and reversing morning losses after a report said car giant Toyota would post strong earnings for its fiscal first half.
Sydney was flat, edging up 1.8 points to 5,433.8. Seoul was also flat, dipping 0.26 points to 2,013.67.
Shanghai fell 0.82 percent, or 17.63 points, to 2,139.61 and in the afternoon Hong Kong was up 0.10 percent.
While the focus is on US third-quarter growth data and October jobs figures later this week, the non-manufacturing numbers indicated the economy is showing signs of strength.
The ISM purchasing managers' index for the service sector rose to 55.4 percent in October -- up from a September reading of 54.4 percent and much higher than the expected 54.0 percent.
A figure above 50 indicates growth while anything below suggests contraction.
Analysts highlighted a surge in the employment reading for the services sector, which accounts for about 80 percent of private-sector jobs.
The positive numbers show the recovery in the world's number one economy is gaining traction but raise questions about the future of the Fed's stimulus.
The bank has said it will only begin cutting back on its $85 billion a month bond-buying scheme -- which has been credited with sparking a global stocks rally -- once the economy is strong enough.
"The... data indicated that the impact of the US government's partial shutdown (at the start of October) was limited," Hiroichi Nishi, general manager of equities at SMBC Nikko Securities, told Dow Jones Newswires.
On Wall Street Tuesday the Dow eased 0.13 percent, the S&P 500 dipped 0.28 percent and the Nasdaq edged up 0.08 percent.
The euro made gains in the afternoon, after early losses fuelled by news that European Union officials had cut their 2014 growth forecast for the eurozone to 1.1 percent from the 1.2 percent forecast in May.
The figures -- along with data showing inflation fell to a four-year low of 0.7 percent in October -- dented hopes for a strong recovery in the bloc, but fuelled speculation the European Central Bank would cut interest rates or announce other growth-positive measures.
The single currency sat at $1.3505 and 133.17 yen in the afternoon, compared with $1.3474 and 132.76 yen in New York on Tuesday. However, it is still well down from the $1.3738 and 135.35 yen in the middle of last week before the inflation data.
The dollar stood at 98.61 yen against 98.53 yen.
Tokyo shares enjoyed a U-turn after lunch thanks to a Nikkei news report that Toyota would announce strong six-month earnings figures and upgrade its annual forecasts, thanks largely to a weaker yen and strong sales in North America.
After the closing bell, the car giant posted a net profit of one trillion yen, up 82.5 percent from a year earlier. It also raised its profit forecast for the year to March to 1.67 trillion yen, from 1.48 trillion yen previously estimated.
Oil prices rose. New York's main contract West Texas Intermediate for December delivery gained 53 cents to $93.90 a barrel after sinking to a five-month low in New York. Brent North Sea crude for December climbed 61 cents to $105.94.
Gold dropped to $1,313.80 per ounce at 0800 GMT compared with $1,311.73 on Tuesday.
In other markets:
-- Taipei rose 0.24 percent, or 19.77 points, to 8,281.97.
Taiwan Semiconductor Manufacturing Co edged up 0.47 percent to Tw$107.0 while leading food maker Uni-President Enterprise shed 1.11 percent at Tw$53.5.
-- Wellington rose 0.12 percent, or 5.87 points, to 4,944.57.
Ryman Healthcare ended up 1.8 percent at NZ$7.91 and Telecom was down 1.1 percent at NZ$2.31.
