Asian markets mostly up but Europe weighs

HONG KONG: Asian markets were mostly higher in early trade on Wednesday, extending the previous day's rally thanks to upbeat US and German data as well as successful bond auctions in Spain and Greece.

However, eurozone fears continued to cast a shadow while financial plays were weighed by disappointing earnings from banking giant Citi.

Tokyo gained 0.12 percent, Hong Kong added 0.45 percent, Shanghai climbed 0.51 percent and Sydney was flat while Seoul was 0.21 percent off.

Confidence was given a lift after investors bought up debt from Madrid and Athens just days after Standard & Poor's downgraded nine of the region's economies as well as the bailout fund set up to help stricken nations.

Spain's borrowing costs plummeted in an auction of 12- and 16-month paper, allowing it to raise 4.88 billion euros with demand outstripping supply by more than three times.

And Greece said demand outstripped supply three times as it raised 1.625 billion euros in three-month debt -- well above the original target of 1.25 billion euros -- as the rate eased to 4.64 percent from 4.68 percent.

Buyers were able to take on a little more risk since the European Central Bank loaned nearly half a trillion euros at a rock-bottom rate to the region's banks last month.