Asian markets rise after heavy sell-off

HONG KONG: Asian markets climbed on Tuesday and the euro clawed back some of its losses as dealers took a breather from a recent heavy sell-off caused by concerns over the eurozone.

Tokyo rose 0.75 percent as the yen lost some of its recent strength, Hong Kong was 1.03 percent up, Shanghai gained 0.52 percent, Sydney added 1.37 percent and Seoul climbed 0.68 percent.

With little to drive sentiment after the weekend analysts said there was an opportunity to buy after most regional bourses fell into negative territory for the first time in 2012.

The "mostly flat performance in New York, and a pause in the yen's strength are likely to invite some buying" on Tuesday, Rakuten Securities senior market analyst Masayuki Doshida said.

But jitters over the eurozone debt situation and concerns over the state of the global economy are likely to weigh on sentiment, Doshida told Dow Jones Newswires, signalling that any gains may be limited.

On Wall Street the Dow fell 0.14 percent, the S&P 500 was flat and the Nasdaq Composite gained 0.46 percent.

Spanish Prime Minister Mariano Rajoy called at the weekend for a banking union in Europe, which would be able to provide aid to lenders, especially in Spain, a move that was picking up support in France and at the European Central Bank (ECB). However, Germany remained strongly opposed for the moment.

Global markets have been hammered since the start of May as Europe's debt troubles returned after a Greek general election saw a strong showing for anti-austerity parties, while Spain's bank crisis has left the already creaking economy teetering.

Market players will be looking to the result of a conference call later in the day between the Group of Seven finance ministers to discuss Europe's crisis, in particular Spain's travails.

In Europe the ECB will hold a rate-setting meeting Wednesday, with investors looking to see if it will announce any moves to kickstart the region's stuttering economy.

On currency markets the euro -- which last week hit a 23-month low versus the dollar and a near 12-year low against the yen -- regained a little ground.

The common unit bought $1.2534 and 98.18 yen in early Asian trade, up from $1.2494 and 97.89 yen in New York late Monday. The dollar was flat, buying 78.35 yen.

Oil prices rose in early trade. New York's main contract, West Texas Intermediate crude for July delivery, was 85 cents higher at $84.83 a barrel and Brent North Sea crude, also for July, rose by 54 cents to $99.39.

Gold was at $1,621.50 an ounce at 0230 GMT, compared with $1,622.08 late Monday.