HONG KONG: Asian shares were mixed in quiet trade on Tuesday as Tokyo was hurt by renewed fears over the crisis at its stricken atomic plant and China raised interest rates to curb rampant lending.
With few catalysts to spur buying, dealers returned their attention to Japan where crews at Fukushima have begun dumping radioactive water into the Pacific Ocean to prevent even more dangerous material from being released.
Tokyo's Nikkei slipped 1.06 percent, or 103.34 points, to end at 9,615.55, while Sydney gained 0.27 percent, or 13.3 points, to 4,900.1.
Seoul gained 0.69 percent, or 14.56 points, to 2,130.43.
Markets in China, Hong Kong and Taiwan were closed for public holidays.
China's central bank said it would raise one-year deposit and lending rates by 25 basis points -- the fourth hike since late last year -- in its latest effort to rein in lending and bring inflation under control.
The latest move, to take effect when markets reopen on Wednesday, takes the one-year deposit and lending rates to 3.25 percent and 6.31 percent respectively.
Authorities have been pulling on a variety of policy levers to contain consumer prices and housing costs but inflation remains stubbornly high.
Japan's losses followed a strong performance on Monday, when investors were buoyed by strong jobs figures out of the United States that suggested recovery in the world's biggest economy was gaining traction.
But despite recent gains since the March 11 quake and tsunami in Japan, concerns linger over the crisis at the Fukushima atomic plant, which has seen radiation emitted into the air, contaminating farm produce and drinking water.
Tokyo Electric Power (TEPCO), which operates the plant, insisted the release of the water -- the equivalent of more than four Olympic-sized swimming pools -- would not harm marine life or seafood safety.
However, the firm's stock price was sent tumbling again, shedding more than 18 percent amid fears over possible huge compensation claims against it.
The firm has lost more than 80 percent of its value before the earthquake.
"A couple of weeks ago, the company said all they have to do is to cool the reactors, but the situation doesn't seem to be improving," a trader at a Japanese brokerage told Dow Jones Newswires.
"Compensation to be paid will likely balloon with this contaminated water release."
On currency markets the dollar rose after US Federal Reserve chief Ben Bernanke said a recent rise in inflation would not continue, while the euro sank after Moody's cut its debt rating on Portugal, raising fresh concerns over the eurozone.
The euro bought $1.4181 in European morning trade, down from $1.4220 in New York late Monday. The single European currency had hit a five-month high of $1.4268 in intraday trade Monday.
The greenback also gained to 84.22 yen from 84.03 yen.
The euro changed hands at 119.44 yen from 119.67.
Bernanke said a jump in US inflation rates for February would be "transitory", adding that medium-term expectations "if anything, will be a bit low."
US February inflation data released last month showed soaring consumer price levels across a large swathe of goods, with costs of staples jumping 0.5 percent -- the fastest rise since June 2009.
Bernanke's statement also hinted that he was committed to seeing through a $600 billion stimulus package expiring in June, going against fellow Federal Open Market Committee members' calls to cut it short and raise interest rates as the economy recovered.
Oil prices edged lower on profit-taking but the troubles in Libya and the Middle East continued to provide support.
Oil slid in afternoon Asian trade, with New York's main contract, light sweet crude for delivery in May, down 34 cents to $108.13 per barrel.
Brent North Sea crude for May delivery fell 27 cents to $120.79.
In other markets:
-- Singapore closed 0.20 percent, or 6.13 points, higher at 3,146.75.
DBS Bank was 0.14 percent higher at Sg$14.72 and oil-rig maker Keppel Corp was down 0.63 percent at Sg$12.62.
-- Manila fell 1.01 percent, or 42.34 points, to 4,167.09.
Metropolitan Bank fell 0.6 percent to 68.00 pesos and Philippine Long Distance Telephone shed 2.0 percent to 2,352.
-- Wellington gained 0.29 percent, or 9.87 points, to 3,469.38.
Fletcher Building added 0.9 percent to NZ$9.41 and Air New Zealand rose 0.9 percent to NZ$1.14.
-- Jakarta fell 0.38 percent, or 14.11 points, to 3,685.93.
Coal miner Bumi Resources shed 2.3 percent to 3,175 rupiah, while Bank Mandiri lost 2.9 percent to 6,650 rupiah.
-- Kuala Lumpur fell 0.15 percent, or 2.41 points, to 1,553.07.
Gaming giant Genting Malaysia slid 3.2 percent to 3.68 ringgit while communications firm Axiata dropped 0.8 percent to 4.82 but food and beverage operator Berjaya Food climbed 38 percent to 1.14.
-- Bangkok shed 0.23 percent, or 2.53 points, to close at 1,076.13.
Coal producer Banpu dropped 4.00 baht to 782.00, but PTT Plc stayed put at 386.00 baht.
-- Mumbai fell 0.16 percent, or 31.86 points, to 19,669.87.
India's second biggest mobile phone firm Reliance Communications rose 1.88 percent or 2.05 rupees to 111.2, even as group chairman Anil Ambani was called before a parliamentary committee on Tuesday, in relation to a probe into a multi-billion-dollar telecom scandal.
India's largest private aluminium firm Hindalco rose 1.76 percent or 3.8 rupees to 219.7.
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