HONG KONG: Asian stock markets were mixed on Tuesday, with optimism after recent strong gains tempered by fresh concerns over Greece's debt crisis.
With Wall Street closed Monday for Independence Day many bourses were subdued. Sydney was unmoved by the Australian central bank's decision to hold interest rates, citing global economy concerns and eurozone woes.
Seoul rose 0.77 percent, or 16.45 points, to 2,161.75 and Tokyo was flat, edging up 7.37 points to 9,972.36, but Sydney dropped 0.27 percent, or 12.6 points, to 4,598.1.
Shanghai fell 0.13 percent and Hong Kong dipped 0.08 percent in the afternoon.
Asian markets posted broad gains Monday and at the end of last week after Athens agreed to austerity measures that meant it could avoid a default -- a situation many feared could have led to another global financial shock.
However, ratings agency Standard & Poor's on Monday warned that proposals aimed at helping Greece through its financial turmoil with a new bailout could still amount to a selective default.
The proposals centre on voluntary renewal by private banks of debt, in the form of bonds from five to 30 years, which would give Athens some breathing space without actually reducing the amount it owes.
But S&P said in a statement: "It is our view that each of the two financing options described in the (French) proposal would likely amount to a default under our criteria."
Tsuyoshi Segawa, equity strategist at Mizuho Securities, told Dow Jones Newswires that the comments from S&P were "a reminder that the Greece problem will not go away easily".
The dollar edged up in Tokyo after a report that a reduction in income tax on repatriated profits being debated by the US Congress could lead to as much as $700 billion in flows back to US. The euro weakened to $1.4474 Tuesday against $1.4524 in London late Monday. The dollar firmed to 81.09 yen from 80.71 yen in London.
The single European currency dipped to 117.41 yen from 117.47 yen.
With few indicators this week, analysts said most investors will be looking to the release on Friday of US government jobs figures, to provide some idea of the state of the world's number one economy.
On oil markets New York's main contract, West Texas Intermediate for August delivery, fell 17 cents to $94.77 a barrel and Brent North Sea crude for August also dropped 17 cents, to $111.22.
Gold opened at $1,497.00-$1,498.00 an ounce in Hong Kong, up from $1,494.00-$1,495.00 on Monday.
In other markets:
-- Taipei rose 0.11 percent, or 9.72 points, to 8,784.44.
China Airlines was up 0.78 percent at Tw$19.45 while TSMC fell 0.41 percent to Tw$73.2.
-- Manila rose 0.41 percent, or 18.05 points, to 4,439.61.
San Miguel rose 3.4 percent to 123 pesos, Metropolitan Bank added 0.2 percent to 71.65 pesos and Energy Development gained 0.4 percent to 6.92 pesos.
-- Wellington fell 0.14 percent or 4.90 points to 3,473.59.
Fletcher Building was flat at NZ$8.56, Contact Energy closed down 0.9 percent at NZ$5,35 and Air New Zealand was up 0.9 percent at NZ$1.13.
Copyright AFP (Agence France-Presse), 2011
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