Asia-Pacific shares outside Japan dipped about 0.1 percent
TOKYO: Asian stocks erased early modest gains on Tuesday, while the euro steadied but remained vulnerable after overnight comments from the European Central Bank chief heightened expectations of easing steps in the euro zone.
MSCI’s broadest index of Asia-Pacific shares outside Japan dipped about 0.1 percent, after opening higher, as investors locked in profits following its rise to a one-year high on Monday.
Japan’s Nikkei stock average was a regional standout, adding about 0.9 percent after marking its highest intraday level since early April.
“Short covering has been continuing since last week’s strong China PMI data and U.S. housing data,” said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. “The main buyers are short-term investors like derivatives players and hedge funds.”
US and UK markets were closed for holidays on Monday, giving Asian shares fewer directional cues than usual.
The holidays also crimped foreign exchange volumes to less than half of their daily averages. While thin conditions sometimes amplify market moves, major currency pairs quietly stuck to recent ranges.