Asian stock markets were mostly up Monday, with Ssangyong Motor powering higher in Seoul on news that seven companies had shown interest in buying the firm.
Tokyo’s Nikkei 225 gained 5.72 points to 9.768.76
In Hong Kong, the Hang Seng index slid 1.52 points to 19,765.19.
However, buying interest was modest across many markets as investors were still cautious on concerns that the euro zone's debt crisis could spread after Spain's ratings downgrade.
Fitch Ratings cut Spain's sovereign debt rating to AA+ from AAA, which sent Wall Street stocks lower Friday.
In Seoul, telecom stocks and auto makers were leading the market higher, with Ssangyong Motor surging 14.6% after the company Friday said seven companies had joined the race to acquire it, by submitting separate letters of intent to deal adviser Macquarie Securities Korea.
Hyundai Motor was up 0.4% and Kia Motors gained 0.6%, while SK Telecom rose 2.6%.
Hynix Semiconductor was down 2.9%. The world's second-largest maker of computer memory chips by revenue on Monday said that it has raised its 2010 capital expenditure budget to up to KRW3.05 trillion from its initial budget of KRW2.3 trillion.
On Friday, Hynix announced that it had decided to end its joint-venture partnership with Numonyx by buying back all of Numonyx's 21% stake for $423 million U.S.
In Japan, exporters were lifted by the euro's rise against the yen, with Canon up 1.1%, Nissan Motor up 0.9% and Mazda Motor up 1.3%.
Shinsei Bank fell 5.4% as worries over the consumer finance sector weighed; analysts said uncertainty surrounds Shinsei's future business model and profitability after it scrapped its merger with Aozora Bank in February.
The Social Democratic Party of Japan on Sunday decided to leave embattled Prime Minister Yukio Hatoyama's coalition following his dismissal of its leader in a dispute over his handling of a U.S. military base, an issue that has battered his initially popular government.
Though Hatoyama's government still holds a majority, the cabinet's approval rating has fallen to 22%, down two percentage points from April, with the majority of voters now calling for Hatoyama's resignation, according to a Nikkei report.
But the low approval ratings may actually have a positive impact on the Japanese stock market in the medium term, according to some experts,
Tourism and airline stocks in Taiwan received a boost after an Economic Daily News report on Monday, citing unnamed sources, said the nation may sign a planned trade pact with China when both sides meet for the fifth round of official talks in Shanghai from June 15 to June 20.
The stocks were up on anticipation of more cross-strait flights and tourists from the mainland. China Airlines was up 4.2%, EVA Airways gained 1.7% and Ambassador Hotel rose 5.9%.
The Australian market was being led lower by banking and resources stocks.
Major banks were down 0.1% to 1.0% while among miners, BHP Billiton was down 1.3% and Rio Tinto lost 1.8%.
Healthscope was up 5.0% after it said it had received two new bids valuing the company at A$1.84 billion, or A$5.80 a share, as the battle for the Australian hospitals group intensified.
Healthscope didn't identify who was behind the new proposals. The new offers, which the company said were indicative and non-binding, were pitched at a 10.9% premium to Healthscope's Friday closing price of A$5.23.
In foreign exchange markets, the euro was higher as investors covered their short-euro positions established on Friday.
The euro was at $1.2311 against the U.S. dollar, compared with $1.2281 in late New York trade on Friday, and at Y112.50 against the yen, compared with Y111.68. The dollar was at Y91.33, compared with Y90.91.
Elsewhere;
Shanghai’s CSI 300 tumbled 77.04 points, or 2.7%, to 2,773.26
The Singapore Straits Times Index returned from holiday to gain 12.90 points, or 0.5%, to
2,752.60
Korea’s Kospi index advanced 18.47 points, or 1.1%, to 1,641.25
Taiwan’s Taiex index progressed 78.66 points, or 1.1%, to 7,373.98
New Zealand’s NZX 50 Index tacked on 13.48 points, or 0.4%, to 3,061.22
Australia’s S&P/ASX 200 lost 27.80 points, or 0.6%, to 4,429.70
