HONG KONG, Nov 20: Asian markets were mixed on Tuesday as confidence that the US politicians will agree a deal to avert a fiscal cliff was offset by profit-taking following a recent strong rally.
The decision by Moody’s to downgrade French debt staunched a rise in the euro early on but it picked up in the afternoon, stoked by hopes that eurozone leaders will agree to hand Greece its latest batch of bailout cash.
Tokyo, which has risen about five per cent in the past three sessions, ended the day 0.12 per cent lower on profit-taking and after the Bank of Japan held off any new monetary easing measures following a policy meeting. The Nikkei shed 10.56 points to 9,142.64. Sydney finished 0.56 per cent, or 24.3 points, higher at 4,385.7 while Seoul was up 0.64 per cent, or 12.08 points, to close at 1,890.18.
Hong Kong fell 0.16 per cent, or 33.78 points, to 21,228.28, while Shanghai eased 0.40 per cent, or 8.06 points, to 2,008.92.
Wall Street provided a strong lead as markets opened for the first time since Republicans and Democrats on Friday pledged to work on a budget that would avoid the fiscal cliff of tax hikes and spending cuts due on January 1 that would tip the economy into recession.
Global shares have tumbled in recent weeks on fears the two parties would not find a compromise but the comments from Congressional leaders have soothed fears. The Dow climbed 1.65 per cent, the S&P 500 jumped 1.99 per cent and the Nasdaq surged 2.21 per cent.
The rally was also boosted by figures showing that existing home sales rose 2.1 per cent in October from September and home builder confidence improved for a seventh straight month in November.
In other markets: Taipei rose 16.73 points, or 0.23 per cent, to 7,145.77. Smartphone maker HTC fell 3.08 per cent to Tw$236.0 while chip giant TSMC was 0.44 per cent higher at Tw$90.4.
Manila closed 0.94 per cent higher, adding 51.03 points to 5,500.58. Banco de Oro added 0.29 per cent to 68.30 pesos, Philippine National Bank surged 11.69 per cent to 84.10 pesos, while Metropolitan Bank finished 1.06 per cent up at 95 pesos.
Wellington climbed 0.77 per cent, or 30.37 points, to 3,972.97. Fletcher Building rose 3.7 per cent rise to NZ$7.65 and Telecom was down 0.21 per cent at NZ$2.38.
Singapore closed up 0.27 per cent, or 7.89 points to 2,958.82. Olam International plunged 7.47 per cent to Sg$1.61 while Keppel Corp gained 1.60 per cent to Sg$10.17.
Kuala Lumpur gained 0.89 points, or 0.05 per cent, to end at 1,624.20. UEM Land lost 1.6 per cent to 4.82 ringgit, RHB Capital eased 0.9 per cent to 7.59 while British American Tobacco gained 1.0 per cent to 58.54.
Jakarta ended down 0.02 per cent, or 1.073 points, at 4,312.366. Palm oil firm Sinar Mas Agro Resources and Technology dropped 2.86 per cent to 6,800 rupiah and retailer Hero Supermarket slipped 2.44 per cent to 4,000 rupiah.
Bangkok lost 0.56 per cent, or 7.24 points, to 1,276.41. Telecoms company Advanced Info Service dropped 3.28 per cent to 191.50 baht, while electricity firm EGCO added 0.78 per cent to 129.00 baht.
Mumbai dropped 0.05 per cent, or 9.68 points, at 18,329.32 points. IT outsourcer Infosys was down 1.46 per cent at2,325.40 rupees and carmaker Mahindra & Mahindra was up 3.25 per cent at 938.35 rupees.—AFP