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Asia stocks mixed on European woes; Nikkei down 0.41%

Published 04/23/2012, 10:25 PM
Updated 04/23/2012, 10:27 PM
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Investing.com - Asian stocks traded mixed to lower on Tuesday as investors sold stocks on fears fresh that political turmoil in Europe will keep the continent mired in recession or close to it.

During Asian trading on Tuesday, Hong Kong's Hang Seng Index was up 0.52%, Australia's S&P/ASX200 was up 0.34%, while Japan’s Nikkei 225 Index was down 0.41%.

Political turmoil in Europe frayed nerves in Asia.

In France, President Nicolas Sarkozy trailed Socialist challenger François Hollande in Sunday's elections, leaving both candidates headed to a runoff in May.

The news concerned investors that Hollande would reverse current austerity measures should he win, thus leaving the fate of the continent's recovery up in the air.

In the Netherlands, a breakdown in budget negotiations prompted Dutch Prime Minister Mark Rutte to offer his cabinet's resignation to the Dutch queen, who will consider it, although the government will keep plugging away to find an exit strategy from the impasse.

Meanwhile in Germany, Europe's largest economy, the country's important manufacturing sector may be suffering from softening demand in the continent's debt-ridden periphery countries.

Markit's manufacturing Purchasing Managers Index for Germany dropped to 46.3 in April from 48.4 in March, far below expectations for an increase to 49.0.

Meanwhile in Australia, inflation rates remain tame.

The Australian Bureau of Statistics reported that the country's consumer price index rose to 0.1% in the first quarter, from 0.0% in the preceding quarter.

Analysts had expected rate to rise 0.6% in the last quarter.

In Hong Kong, the top gainers included Sino Land, up 2.67%,  CHALCO, up 2.42%, and Wharf Holdings, up 1.91%.

Top Australian gains included Mirabela Nickel, up 14.89%, Coalspur Mines, up 3.95%, and SP AUSNET, up 3.32%.

European stock futures indicated a higher opening.

France's CAC 40 futures pointed to a gain of 0.46%, while Germany's DAX 30 futures signaled a gain of 0.31%. Meanwhile, in the U.K., the FTSE 100 futures indicated a gain of 0.29%.

Dow Jones Industrial Average futures were up 0.26% while the S&P 500 futures were up 0.32%.

Markets worldwide will begin focusing on Washington, where the Federal Reserve is set to address interest rates and monetary policy.





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