Asian stocks mixed amid Europe debt fears

Business

Asian stocks mixed amid Europe debt fears

Close

Asian markets were mixed Tuesday following big losses the previous day on eurozone uncertainty.

08 May,2012 07:51 pm

The euro moved in a tight range as investors digested the results from Sunday, with some analysts suggesting the initial panic, which saw the single currency dive to a three-month low against the dollar, may have been too early.European problems remained in focus after Greek conservatives failed to form a government, paving the way for anti-austerity leftists to try to form a coalition.Tokyo climbed 0.69 percent, or 62.51 points, to 9,181.65, Sydney gained 0.30 percent, or 13.0 points, to 4,314.3, and Seoul was 0.54 percent higher, adding 10.57 points to 1,967.01. But Hong Kong skidded 0.25 percent, or 51.90 points, to 20,484.75 and Shanghai fell 0.13 percent, or 3.07 points, to 2,448.88 on disappointment China has not yet reversed tightening measures introduced to cap soaring property prices.Regional investors sold heavily on Monday after Frances Nicolas Sarkozy was ousted by Socialist Francois Hollande, who ran on a platform of spending to boost the countrys economy instead of new cuts to tackle its huge deficit.That came as the two main parties in Greece -- the conservative New Democracy and the left-wing Pasok -- were heavily beaten in a general election, with those opposed to austerity winning almost 60 percent support.On Monday New Democracy failed in its attempt to form a coalition with the anti-austerity Syriza party, which would now be tasked with forming a government itself. The development has opened up the likelihood of fresh elections, adding to uncertainty.Analysts fear the new leaders in Greece and France will ignore the regional drive to save money and instead spend on services, which will blow out their already huge debts.However, European markets mostly rose on Monday. In Paris the CAC 40 jumped 1.65 percent, Frankfurts DAX 30 climbed 0.12 percent and Madrids IBEX 35 jumped 2.72 percent although Athens plunged 5.37 percent. London was closed for a public holiday.In Asia on Tuesday the euro, which was hammered in the region the previous day, reversed its losses. The unit bought $1.3001 and 103.86 yen in early European trade, compared with $1.3052 and 104.28 yen late Monday in New York, although it was still up from the $1.2954 and 103.22 yen it hit in Asia early Monday.The dollar bought 79.80 yen, from 79.88 yen.The pair (euro against the dollar) unexpectedly failed to drop much overnight despite negative factors for the euro over the weekend, said Osao Iizuka, head of FX trading at Sumitomo Mitsui Trust Bank.The pair appears to be back in the previous $1.3000-1.3300 range, he told Dow Jones Newswires. And National Australia Bank said in a note: Last nights session reflected on the weekends events and concluded the outcome wasnt so bad.On oil markets New Yorks main contract, West Texas Intermediate (WTI) crude for delivery in June was down $1.01 at $96.93 per barrel, while Brent North Sea crude for June fell 62 cents to $112.54 in late afternoon.Gold was at $1,626.80 an ounce at 1100 GMT, compared with $1,641.00 late Monday.