Asian stocks ended another lackluster session on a mixed note Tuesday, with many traders on vacation to celebrate the Chinese New Year. The markets in China, Hong Kong, South Korea, Singapore and Malaysia were all closed for a public holiday.
Tough negotiations between Greece and its creditors weighed on sentiment as investors look ahead to the U.S. Federal Reserve's latest monetary policy announcement and its assessment of economic conditions.
Although it is believed that Greece will eventually reach a deal with private creditors on lowering its debt, caution set in following last night's rejection by European finance ministers of the bondholder's initial debt-restructuring plan. Policymakers called for greater contribution from bondholders to stave off the danger of a default by the troubled Eurozone member.
Japan's Nikkei index rose 0.2 percent to a 11-week high, as the yen's weakness against the euro boosted the earnings outlook for exporters. The broader Topix index posted a modest 0.1 percent gain, extending gains for the sixth consecutive session.
Auto-related shares paced the gainers, with Suzuki Motor and Toyota Motor rising over 2 percent each, while parts maker Denso advanced 1.8 percent. Fast Retailing added 2.6 percent on expectations that sales related to winter clothes will rise at its Uniqlo casual clothing chain after Tokyo's first snow of the season disrupted some train services on Monday night.
Elpida Memory jumped 4.6 percent on a report the chipmaker is in final talks to form a three-way business tie-up with Micron Technology Inc. of the United States and Taiwan's Nanya Technology Corp. Sony fell 2.4 percent on reports it has offered to take a stake of up to 30 percent in scandal-tainted Olympus. Inpex gained 2.2 percent as oil prices rose overnight after the the European Union's approval of a ban on Iranian crude from July.
Australian shares shares erased early gains to end marginally lower, as the standoff over Greece's debt restructuring and increasing worries that Portugal may need a second bailout spurred some profit taking. The benchmark S&P/ASX 200 slipped 0.02 percent while the broader All Ordinaries index was down 1.2 points.
Resource firms ended mixed, with BHP Billiton and Fortescue losing between 0.4 percent and 1.6 percent, while Rio Tinto gained 0.7 percent. Newcrest Mining added 2 percent after gold prices settled at a six-week high in New York overnight, boosted by geopolitical concerns and weakness in the American currency overseas. The big four banks ended modestly higher, with NAB bucking the trend to end down 0.6 percent.
Energy shares witnessed fresh buying, as crude futures inched toward $100 a barrel after the European Union imposed new sanction on Iran overnight. Woodside rose 0.7 percent, while Santos edged up marginally. Oil Search rallied 2.7 percent after the company said it is expecting steady production for 2012. Retailers lost ground, with Myer Holdings and David Jones falling over 3 percent each.
New Zealand shares fell as the uncertainty over crucial talks on a Greek debt deal kept investors at bay. The benchmark NZX-50 index shed 0.8 percent, with shares of utility Contact Energy falling over 3 percent to an eight-and-a-half year low ahead of the upcoming earnings season. Whiteware manufacturer Fisher & Paykel Appliances lost 4.2 percent, retailer Hallenstein Glasson declined 1.4 percent and construction firm Fletcher Building slipped 0.2 percent.
Auckland International Airport tumbled 3.5 percent, a day after announcing that it saw record number of international arrivals and departures in the week ended January 8. Rakon, the maker of crystal timing devices used in electronics, led the gainers on the exchange, climbing 5.7 percent. Energy efficient lightbulb maker and marketer Energy Mad jumped 9.1 percent, recouping a third of Monday's loss after it warned of reduced earnings.
India's Sensex was last trading up 1.5 percent as the Reserve Bank of India unexpectedly cut the cash reserve ratio for banks by 50 basis points to infuse more liquidity in the banking system. Leaving key policy rates unchanged in its third-quarter monetary policy review, governor D Subbarao walked a tight rope in addressing growth and liquidity issues very well, analysts said.
U.S. stocks turned in a lackluster performance overnight, as wary investors remained focused on European Union talks aimed at forging a deal on Greece's debt write-down with bondholders. The Dow and the tech-heavy drifted down around 0.1 percent each, while the S&P 500 edged up 0.05 percent.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.