Most Asian markets ended lower

Most Asian markets ended lower Thursday, giving up gains from the previous session, as concerns about the global economy persisted.

Japanese stocks fell sharply, with exporters hit especially hard as the yen strengthened against major currencies. Japanese banks also declined, reversing gains from the previous day, although in Sydney, National Australia Bank led the advance among financials after delivering its strategy report.

"There's more negative sentiment out there. Although a lot of things are good, we haven't reached a point where we've actually resolved the problem within the banking system," said Andrew Sullivan, a trader at Main First Securities.

Japan's Nikkei 225 finished down 2.4% after Wednesday's 4.6% surge. China's Shanghai Composite dropped 0.2%, Taiwan's Taiex slipped 0.1% and New Zealand's NZX 50 fell 0.2%. Australia's S&P/ASX 200 slipped 0.3%.

"People want a clearer picture on the economic outlook before they commit to the market," said Singapore-based Westcomb research head Goh Mou Lih.

South Korea's Kospi Composite ended up 0.1%, ignoring the South Korean won's weakness and the central bank's decision to leave interest rates unchanged, belying expectations of a reduction. India's Sensex climbed 2.3%, ignoring weak data on industrial output, as easing inflation raised hopes of further monetary policy easing.

Hong Kong's Hang Seng Index ended up 0.6% at 12001.53, although the Hang Seng China Enterprises Index fell 0.7%, tracking the weakness in Shanghai.

"The pendulum has swung a bit toward the hope side rather than the fear side," said KGI Asia's Ben Kwong.

The focus Thursday was on data and events: In Japan, fresh data showed that the economy contracted slightly less than initially reported in the fourth quarter, with GDP down 3.2% from the previous quarter, or down 12.1% in annualized terms, compared with original estimates of a 3.3% on-quarter decline and annualized 12.7% contraction.

Still, the data confirmed a drop in exports which has battered the economy in recent months.

The Bank of Korea opted to keep interest rates at an all-time low 2.0% after six consecutive cuts in the past four months. The decision was a surprise as most economists polled by Dow Jones had expected further easing.