Investing.com - Asian stocks were mixed in Tuesday trade, with Japanese indexes posting losses, bucking the upward regional trend on the heels of overnight gains on Wall Street and hopes for progress on European debt.
During early Asian trade, Hong Kong’s Hang Seng Index rose 0.58% to 19,792.50, Japan’s Nikkei Index lost 0.34% to 8,727.39, while Australia’s S&P/ASX 200 added 0.44% to 4,292.10.
The Topix Index of all shares listed on the first section of the Tokyo Stock Exchange, fell 0.48% to trade at 746.84.
Over the weekend, Greek Prime Minister George Papandreou agreed to resign, leaving the door open for the creation of a new government that could better secure international funds and avoid default on the country’s debt.
On Monday, Greece’s Finance Minister Evangelos Venizelos held talks with European Union Economic and Monetary Affairs Commissioner Olli Rehn to negotiate payment of Greece’s next tranche of financial aid.
European finance officials met in Brussels on plans to expand the European Financial Stability Facility, the rescue fund for debt-threatened euro-zone members.
Meanwhile, rumors continued to circulate that Italian Prime Minister Silvio Berlusconi would be the next European leader to step down, as 10-year Italian bonds surged to their highest level since the launch of the single-currency euro. Berlusconi denied he would be resigning.
Wall Street dealers took a generally positive view of events in Europe, with the Dow Jones Industrial Average gaining 0.71% to 12,068.40, the Nasdaq Composite Index added 0.34% to 2,695.25, and the S&P 500 rose 0.63% to close at 1,261.12.
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On Monday, Japan’s Cabinet Office reported that its leading indicators index registered 91.6 in October, below market forecasts of a rise to 96.3 from 93.8 in September.
Japanese automakers were among weakening issues in early Tuesday trade; Mazda Motor Corp. lost 0.66%, Honda Motor Co. Ltd. surrendered 0.2% and Toyota Motor Corp. sank 2.4%.
On Monday, the Japan Automobile Association forecast that a continuing strong yen could result in the collapse of domestic auto production.
Other exporters losing ground in Tokyo included Sony Corp., down 1.3%, Panasonic falling 0.8% and Olympus Corp., which plummeted by a limit-down 29%, as an investigation continued into allegations that the company sought to use various funds to defer losses.
The Australian Bureau of Statistics reported Tuesday that the nation’s trade surplus in September stood at AUD2.56 billion, down from AUD2.95 in August. Market expectations were for a AUD3 billion figure for the period.
The ABS said that exports fell 3% while imports declined by 1% in September.
Also Tuesday, the National Australia Bank business confidence survey rebounded to 2 in October from minus 2 in September. The NAB said the results were consistent with underlying demand and expectations of a 3.25% increase in gross domestic product for the quarter ending December 31.
Mining shares in Sydney were broadly higher on a general strength in global commodities. Rio Tinto Ltd. gained 1.2% and Fortescue Metals Group Ltd. added 1.4%.
The outlook for European stocks was mixed. France’s CAC 40 futures was lower by 0.03% to 3,124.00, Britain’s FTSE 100 futures rose 0.05% to 5,536.80, while Germany’s DAX futures advanced 0.23% to 6,001.20.
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