Asian markets mixed, European fears drag sentiment

HONG KONG: Asian markets were mixed as profit-taking Tuesday after the previous day's big losses was countered by nervousness about the political and economic situation in Europe.

Traders were also following losses on Wall Street and in European bourses while keeping an eye on central bank policy meetings in Washington and Tokyo this week, hoping for some fresh stimulus measures.

Tokyo fell 0.37 percent by the break, Hong Kong gained 0.44 percent, Sydney added 0.41 percent, Shanghai was 0.94 percent higher and Seoul shed 0.13 percent.

Regional shares were hit on Monday after the poor showing of Nicholas Sarkozy in the first round of the country's presidential election at the weekend.

While observers are unsure who will win the run-off there are fears that if his main challenger, Socialist Francois Hollande, wins he could change strategy on dealing with the eurozone crisis.

Hollande has said he would move to renegotiate a regional fiscal pact agreed last year, shifting the focus toward growth rather than austerity, a move likely to stoke friction with other nations, including Germany.

Adding to uncertainty was news the strong showing of far-right candidates, who are opposed to the huge bailouts European nations including Greece, Ireland and Portugal have received. (AFP)