Investing.com - Asian stock markets were higher in cautious trade on Wednesday, driven mostly by short covering and some bargain hunting, as investors were reluctant to make major moves ahead of Thursday’s European Union summit.
During late Asian trade, Hong Kong's Hang Seng Index jumped 1.1%, Australia’s ASX/200 Index rose 0.8%, while Japan’s Nikkei 225 Index closed up 0.8%.
Investors remained cautious ahead of the EU summit on Thursday and Friday amid growing doubts that leaders would make progress on greater fiscal integration and allowing the bloc's rescue funds to buy government debt.
Earlier in the week, German Chancellor Angel Merkel quashed hopes that the euro zone could issue joint euro bonds, saying the idea was "economically wrong" and "counterproductive."
Meanwhile, the yield on Spanish 10-year bonds was at 6.87%, hovering close to the critical 7% threshold that prompted Greece, Ireland and Portugal to seek international bailouts.
On Tuesday, Spain saw short-term borrowing costs rise sharply at an auction of government debt in the wake of a mass downgrade of Spanish banks by ratings agency Moody’s, after Madrid formally requested aid of up to EUR100 billion for its banks.
In Tokyo, the Nikkei’s gains were capped by losses in companies going ex-dividend, meaning buyers of the stocks from Wednesday onwards will not be entitled to receive dividends.
Shares in Canon lost 1.6%, Honda declined 0.6%, while Asahi Glass tumbled 4.8%.
On the upside, Japanese retailers were higher as consumer spending was expected to pick up ahead of a hike in the sales tax, which the parliament passed Tuesday.
Index heavyweight Fast Retailing rose 1.8%, J. Front Retailing climbed 3.5%, while shares in Aeon added 1.15%.
Elsewhere, shares in Hong Kong were boosted by strong gains in property sector stocks, amid growing expectations for near-term stimulus from Beijing.
Shares in China Overseas Land & Investment advanced 3.8%, Henderson Land Investment rose 2.4%, while shares in Sun Hung Kai Properties added 1.5%.
Shares in lenders were broadly higher, with China Construction Bank gaining 1.75%, Industrial and Commercial Bank of China rising 1.45%, while HSBC Holdings added 0.7%.
Meanwhile, shares in Australia rose on the back of strong gains in the media sector.
News Corp climbed 3.4% after the firm confirmed during U.S. trading hours Tuesday that it was considering splitting into two.
Elsewhere across the sector, Seven West Media surged 3.35% and Ten Network Holdings added 2%.
Looking ahead, the outlook for European stock markets was mostly downbeat, amid growing skepticism over whether an upcoming European Union summit would yield progress on tackling the region’s debt crisis.
The EURO STOXX 50 futures pointed to a gain of 0.15%, France’s CAC 40 futures pointed to a flat open, London’s FTSE 100 futures dipped 0.1%, while Germany's DAX futures pointed to a loss of 0.1% at the open.
Later in the day, Germany was to produce preliminary data on consumer price inflation. The U.S. was to publish official data on durable goods orders, as well as industry data on pending home sales.
During late Asian trade, Hong Kong's Hang Seng Index jumped 1.1%, Australia’s ASX/200 Index rose 0.8%, while Japan’s Nikkei 225 Index closed up 0.8%.
Investors remained cautious ahead of the EU summit on Thursday and Friday amid growing doubts that leaders would make progress on greater fiscal integration and allowing the bloc's rescue funds to buy government debt.
Earlier in the week, German Chancellor Angel Merkel quashed hopes that the euro zone could issue joint euro bonds, saying the idea was "economically wrong" and "counterproductive."
Meanwhile, the yield on Spanish 10-year bonds was at 6.87%, hovering close to the critical 7% threshold that prompted Greece, Ireland and Portugal to seek international bailouts.
On Tuesday, Spain saw short-term borrowing costs rise sharply at an auction of government debt in the wake of a mass downgrade of Spanish banks by ratings agency Moody’s, after Madrid formally requested aid of up to EUR100 billion for its banks.
In Tokyo, the Nikkei’s gains were capped by losses in companies going ex-dividend, meaning buyers of the stocks from Wednesday onwards will not be entitled to receive dividends.
Shares in Canon lost 1.6%, Honda declined 0.6%, while Asahi Glass tumbled 4.8%.
On the upside, Japanese retailers were higher as consumer spending was expected to pick up ahead of a hike in the sales tax, which the parliament passed Tuesday.
Index heavyweight Fast Retailing rose 1.8%, J. Front Retailing climbed 3.5%, while shares in Aeon added 1.15%.
Elsewhere, shares in Hong Kong were boosted by strong gains in property sector stocks, amid growing expectations for near-term stimulus from Beijing.
Shares in China Overseas Land & Investment advanced 3.8%, Henderson Land Investment rose 2.4%, while shares in Sun Hung Kai Properties added 1.5%.
Shares in lenders were broadly higher, with China Construction Bank gaining 1.75%, Industrial and Commercial Bank of China rising 1.45%, while HSBC Holdings added 0.7%.
Meanwhile, shares in Australia rose on the back of strong gains in the media sector.
News Corp climbed 3.4% after the firm confirmed during U.S. trading hours Tuesday that it was considering splitting into two.
Elsewhere across the sector, Seven West Media surged 3.35% and Ten Network Holdings added 2%.
Looking ahead, the outlook for European stock markets was mostly downbeat, amid growing skepticism over whether an upcoming European Union summit would yield progress on tackling the region’s debt crisis.
The EURO STOXX 50 futures pointed to a gain of 0.15%, France’s CAC 40 futures pointed to a flat open, London’s FTSE 100 futures dipped 0.1%, while Germany's DAX futures pointed to a loss of 0.1% at the open.
Later in the day, Germany was to produce preliminary data on consumer price inflation. The U.S. was to publish official data on durable goods orders, as well as industry data on pending home sales.