Asian shares mixed after recent rally

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. Shanghai rose 0.13 percent, or 3.54 points, to 2,816.36.

Sydney dropped 0.27 percent, or 12.6 points, to 4,598.1 and Hong Kong fell 0.10 percent, or 22.52 points, to 22,747.95.

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 in July – 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 center 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 the United States.

However, the euro has been supported by expectations of a rate hike by the European Central Bank when it meets on Thursday.

The euro weakened to $1.4475 against $1.4524 in London late Monday. The dollar firmed to 81.17 yen from 80.71 yen in London.

The single European currency was almost flat at 117.50 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 closed at $1,496.50-$1,497.50 an ounce in Hong Kong, up from $1,494-$1,495 on Monday.

In other markets:

— Singapore closed 0.75 percent, or 23.75 points, lower at 3,129.69.

DBS Group Holdings fell 0.07 percent to Sg$14.87 and Tiger Airways Holdings rose four percent to Sg$1.04.

— 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.

— Kuala Lumpur closed flat, edging down 0.50 points to 1,581.85.

Petronas Chemicals shed 0.3 percent to 7.09 ringgit and Sime Darby fell 0.5 percent to 9.20 ringgit while AirAsia rose 0.9 percent to 3.49 ringgit and banker CIMB Group slid 0.1 percent to 8.87 ringgit.

— Jakarta lost 0.74 percent, or 29.39 points, to 3,924.11.

Car distributor Astra International shed 3.2 percent to 66,300 rupiah and Bank Rakyat Indonesia lost 2.9 percent to 6,700 rupiah.

— Bangkok fell 0.52 percent, or 5.69 points, to 1,084.59.

Bangkok Bank rose 0.9 percent to 168 baht and Italian-Thai Development fell 2.6 percent to 4.48. Kasikornbank slipped 1.1 percent to 130.50 baht.

— Indian shares ended down 0.37 percent on profit-taking after a rally last week. The benchmark 30-share Sensex index closed down 69.92 points to 18,744.56.

India’s top engineering firm Bharat Heavy Electricals fell 4.49 percent, or 91.9 rupees, to 1,953.8, while the largest private firm Reliance Industries slid 2.53 percent, or 22 rupees, to 846.15.

Shares of Sun TV Networks fell 2.82 percent, or 9.65 rupees, to 332.05 after the company said it was examining a complaint against an official of unit Sun Pictures who was detained on charges of cheating and criminal breach of trust.