Asian stock markets witnessed a late surge following strong US futures and buying support at lower levels. Most of the benchmark indices were able to pare their intraday losses to a certain extent as an upbeat start to the European bourses aided the sentiments. US Dollar also continued to trend lower from an eight-month high versus the Euro and provided some fillip to the risk appetite. However, the broad trend still remains uncertain as markets await a clear-cut direction on the Eurozone debt woes. The investors are eying the gathering of European Union leaders on Thursday and speculation is rife that the E.U. officials are looking to find a solution to Greece's debt problems. The US currency failed to hold onto 1.3700 and was last seen quoting at 1.3736 against the Euro.
The early trades in Asia painted a picture of continued nervousness for the investors and Japanese equities ended in negative territory for the second consecutive day on Tuesday amid concerns about sovereign debt crisis in Greece and its likely cascading impact on other European countries. However, buying in dips at select stocks including Toyota Motor, which declined sharply in the recent past on recall issues, following mild strength in US dollar against the yen partially offset the losses. The benchmark Nikkei 225 Index ended down 18.92 points, or 0.19%, at 9,933, while the broader Topix index of all First Section issues fell 1.44 points, or 0.16%, to 882.
Japan's machine tool orders surged 192% year-on-year in January after an increase of 63.4% in December, Japan Machine Tool Builders' Association said Tuesday. The sharp increase in total orders was led by external demand, which soared 297% in January compared to the previous year. Meanwhile, domestic orders climbed 78.9%.
The Australian market also ended lower with banks being hurt after investment banker Macquarie Group released a weak forecast for the second half of the year as well as full year outlook that came in below market expectations. The benchmark S&P/ASX200 Index slipped 16.30 points, or 0.36% to close at 4,505, while the All-Ordinaries Index ended at 4,521, representing a loss of 18.10 points, or 0.40%.
New Zealand shares ended weaker as sentiment was hurt by negative global cues, although property stocks fared better after Prime Minister John Key ruled out a series of tax reforms that would have hurt the sector. The NZX-50 ended down 0.6%, or 17 points, at 3076.45.
However, the Korean market rebounded with gains led by key technology issues including Samsung Electronics. The Korea Composite Stock Price Index (KOSPI) finished up 1.14 percent to 1,570.49 points. Stocks related to Kumho Asiana Group also surged after its owner family offered their private wealth as collateral, helping pave the way for the group's restructuring
Indian equities also surged after an initial slackness. The BSE 30-share Sensex was up 88.05 points or 0.55% to 16,023.66, off 70.47 points from the day's high and up 160.76 points from the day's low. The Sensex today regained the psychological 16,000 mark as PSU, power, telecom and infrastructure stocks gained on fresh buying.
Yesterday, in the U.S., after showing a lack of direction throughout much of the trading day, stocks ended Monday's trading mostly lower. The major averages all closed firmly in negative territory, extending the downward move seen over the course of the previous four weeks. The weakness that emerged among stocks came as traders continue to express uncertainty about the global economic outlook, particularly due to recent worries about European credit conditions. The Dow closed down 103.84 points or 1.0% at 9,908, the Nasdaq fell 15.07 points or 0.7% to 2,126 and the S&P 500 lost 9.45 points or 0.9% to close at 1,057.
Crude oil rose above $72 a barrel in New York, reversing earlier losses after the dollar fell on expectations that European central bankers will help Greece with its fiscal deficit. Oil rebounded as the dollar declined for the first time in five days on news that Central Bank President Jean-Claude Trichet will leave a meeting in Sydney early, raising optimism policy makers will assist Greece. A falling greenback spurs demand for commodities as a hedge against inflation concerns.
