Asian Markets Bounce Back after Recent Losses
Asian shares rose Wednesday as a Greek debt sale soothed fears over the country's future and as dealers picked up bargains after a recent sell-off fuelled by concerns over the US fiscal cliff.
The euro, which sank to a two-month low against the dollar in Europe on Tuesday, edged up against the greenback and yen as a little confidence returned to the market.
Tokyo ended flat, edging up 3.68 points to 8,664.73, Sydney gained 0.20 percent, or 8.60 points, to 4,388.4 and Seoul rose 0.23 percent, or 4.34 points, to 1,894.04.
Hong Kong climbed 1.20 percent, or 253.34 points, to 21,441.99 and Shanghai rose 0.37 percent, or 7.53 points, to 2,055.42.
Regional markets have suffered big losses since last week's re-election of US President Barack Obama, with dealers fearing a stand-off in Congress in addressing the fiscal cliff of tax hikes and spending cuts that are due to come in on January 1.
If a deal is not brokered in Washington the package, drawn up during fraught spending cap talks last year, will most likely tip the world's biggest economy back into recession.
Adding to the selling pressure is uncertainty over Greece after European finance chiefs put off for a week a decision on granting Athens the latest instalment of a multi-billion-euro bailout.
And in Germany a survey showed investor confidence had worsened in November as the region's crisis began to drag on its biggest economy.
However, there was some good news for Greece with the threat of a default this week receding after it raised 4.0 billion euros ($5.1 billion) in short-term bond auctions, which should help plug a financing gap left by the stalled loan.
In forex trading the euro -- which touched a two-month low of $1.2662 in London -- bought $1.2732 in afternoon Asian trade from $1.2703 late Tuesday in New York.
The European single unit also rose to 101.77 yen from 100.85 yen, while the dollar firmed to 79.92 yen from 79.38 yen.
On Japan's Nikkei, troubled electronics firm Sharp surged on news reports that it is in final talks with chip giant Intel over a possible $500 million cash injection by the US firm.
In China eyes were on the Communist Party's latest congress which ended Wednesday after approving its next leadership -- to be announced Thursday -- with investors hoping for an indication of future economic policy.
"Once that's known it will set the tone a bit. If there is a reform-minded set-up then that give Chinese markets some support," Lorraine Tan, vice president of research Asia at S&P Capital IQ in Singapore, told Dow Jones Newswires.
Wall Street finished in the red Tuesday. The Dow dropped 0.46 percent, the S&P 500 fell 0.40 percent and the Nasdaq lost 0.70 percent.
Oil prices were higher. New York's main contract, light sweet crude for December delivery was up 17 cents to $85.55 a barrel in afternoon trade and Brent North Sea crude for delivery in December added seven cents to $108.33.
Gold was at $1,727.30 by 0820 GMT compared with $1,726.30 late Tuesday.
In other markets:
-- Taipei rose 0.33 percent, or 23.70 points, to 7,159.75.
Smartphone maker HTC climbed 4.0 percent to Tw$234.0 while TSMC was 0.22 percent higher at Tw$90.5.
-- Manila ended flat, dipping 4.83 points to 5,451.09.
SM Investments fell 0.49 percent to 814 pesos and Alliance Global rose 0.8 percent to 15.12 pesos.
-- Wellington closed 0.38 percent, or 14.99 points, lower at 3,955.56.
Telecom was down 0.84 percent at NZ$2.375, Fletcher Building was off 0.94 percent at NZ$734 and Contact Energy was flat at NZ$5.27.
-- Mumbai was closed for a public holiday.
Source: Agence France Presse
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