Asian markets ended mixed Tuesday as Hong Kong and Australian stocks advanced after earnings optimism fueled gains overnight on Wall Street, while Chinese shares took a break from a string of recent advances.
Japan’s Nikkei 225 Index docked 6.81 points to 9,496.85
Hong Kong’s Hang Seng Index grew 133.48 points, or 0.6%, to 20,979.39
Early gains dissipated in Japan, South Korea and Taiwan, while some other markets came off the day's highs as investors locked in profits. Shares in India advanced despite an increase in interest rates by the central bank as auto makers bounced from Monday's sharp fall.
Wall Street's gains spurred the Australian benchmark index to tap a fresh four-week high of 4,520.3 during the session.
Shares of James Hardie Industries rose 2.9% after the positive U.S. housing data: The U.S. market accounted for 77% of the company's sales for fiscal 2009.
Insurance Australia Group dropped 4.3%. The company said it expects to report a 50% fall in net profit in the year ended June 30.
QBE Insurance Group shares also lost ground, down 3.2%, after it said on Monday that insurance profit margins and profits were set to fall.
In Tokyo, the country's big three banks outperformed the broader market's mild gains after the Basel Committee on Banking Supervision agreed Tuesday on broadening the rules over how to calculate banks' new core capital requirements.
Shares of Mitsubishi UFJ Financial Group added 2.5%, Sumitomo Mitsui Financial Group rose 2.8% and Mizuho Financial Group tacked on 2.2%.
Yahoo Japan Corp. added 1.2%, rising after it confirmed previous reports that it is zeroing in on a deal to grab Yahoo Japan's algorithmic search business in what would be a blow to the alliance between Microsoft and Yahoo.
In Seoul, hopes for strong earnings helped support the market, with Hyundai Motor rising 2.5% and heavyweight Samsung Electronics adding 1.3%.
Hynix Semiconductor slipped 1.9% to 23,500 won ($19.90 U.S.), shedding early gains despite its creditors selling a 4.14% stake in the company at the top end of a pricing range set at 23,950 won per share.
In Taipei, Taiwan International Securities jumped 6.8% after Capital Securities said Monday it plans to offer 12.50 New Taiwan dollars (39 U.S. cents) a share for its smaller rival, indicating a price tag of about NT$13.53 billion. Shares of Capital Securities ended flat.
In foreign-exchange markets, the euro extended its gains against the U.S. dollar and the Japanese yen. The shared currency gained Monday, as investors registered relief over the results of "stress tests" performed on 91 European banks.
CHINA
Chinese banks led the retreat in Shanghai, taking a breather after rebounding strongly over the past few sessions, though some analysts said the recent rally could continue.
Shanghai’s CSI 300 Index dropped 15.33 points, or 0.6%, to 2,795.72
Elsewhere;
Singapore’s Straits Times Index gained back 12.39 points, or 0.4%, to 2,979.38
Korea’s Kospi index tailed off 0.76 points to 1,768.31
Taiwan’s Taiex Index subtracted 39.44 points, or 0.5%, to 7,748.01
New Zealand’s NZX index slid 12.76 points, or 0.4%, to 3,008.43
Australia’s S&P/ASX 200 picked up 11.30 points, or 0.3%, to 4,497.40
