Tokyo posts gains on weaker yen, Hang Seng down with focus on Greece

Investing.com - Shares in Tokyo gained on Tuesday with China in the last day of a week-long Lunar New Year holiday with investors eyeing Greece to pass reforms needed to secure further euro zone loans.

The Nikkei 225 rose 0.26% at the break, while the Hang Seng headed for the first loss in six sessions, down 0.3%, on trouble at lender HSBC Holdings Plc (HK:0005).

But also on the Hang Seng, Air China (HK:0753) gained 4% to HK$6.78 and China Southern Airlines Company (NYSE:ZNH) advanced 2.1% to HK$3.84.

Overnight, U.S. stocks were mixed after the close on Monday, as gains in the Utilities, Health Care and Consumer Services sectors led shares higher while losses in the Telecommunications, Oil & Gas and Industrials sectors led shares lower.

At the close in New York, the Dow Jones Industrial Average fell 0.13%, while the S&P 500 index declined 0.03%, and the NASDAQ Composite index added 0.10%.

Financial markets in China remain closed until Wednesday. In Japan, producer prices rose 3.4%, below expectations of a 3.6% gain.

On Monday disappointing U.S. home sales data weighed, although concerns over whether Greece will announce the necessary reforms for its bailout extension continued to support safe-haven demand.

In a report, the National Association of Realtors said that existing home sales decreased 4.9% to 4.82 million units last month from 5.07 million in December. Analysts had expected existing home sales to fall 0.8% to 4.97 million units in January.

The single currency came under renewed selling pressure as concerns over the conditions attached to the bailout.

Athens on Monday was scheduled to present a list of reforms to be approved by the country’s creditors, but delayed the process until Tuesday, Reuters reported.

Greece will present its economic reform plans to the euro zone on Tuesday, a government official said.

The official gave no reason for the delay but said euro zone finance ministers would consider Greece's plans, which include a crackdown on tax evasion and corruption, as scheduled on Tuesday afternoon.

In Brussels a euro zone official said the "content of the letter will not be a surprise" to the euro zone and therefore the Tuesday submission was not a major issue. Greece has said it was working closely with its euro zone partners in drawing up the list.