Fractured mandate for Asian stocks

Synchronized rally missing even as sentiments remain well supported on strong overnight US cues

Asian markets ended mixed today though the sentiments were mostly upbeat after the US stocks advanced last night on the much awaited health-care legislation in the House of Representatives. Asian stocks tried to push the worries posed by the surprise rate hike by the Indian central bank last week and the persistent support emerging for the Euro at levels under 1.3500 augured well for the investors.

The Australian market ended in positive territory, taking cues from Wall Street. Banks led the gains followed by mining and metal stocks on increasing optimism about the global economy. An overnight rebound in crude-oil prices helped support energy-sector stocks. The benchmark S&P/ASX200 Index advanced 44.60 points, or 0.92% to close at 4,875, while the All-Ordinaries Index ended at 4,888, representing a gain of 40.40 points, or 0.83%.

South Korean stocks also ended on a firm note with investors displaying renewed vigor after Monday's losses. Shipping, technology and banking stocks are among the notable gainers. The benchmark KOSPI index added 0.6%.

Japanese stocks slipped though as traders preferred to lock in profit from the recent gains and move to the sidelines awaiting more cues on global economy. Strengthening of the Japanese yen against the US dollar impacted market sentiment more than offset the gains on Wall Street in the previous session and increasing optimism about economic recovery. The benchmark Nikkei 225 Index fell 50.57 points, or 0.5%, to 10,774, while the broader Topix index of all First Section issues slipped 1.56 points, or 0.2%, to 947.

Profit selling was witnessed in some other indices as well. The most notable of them al was China, where the worries on rising interest rates continued to hamper the banking and reality stocks. China's Shanghai Composite gave up 0.7%. In other markets, Taiwan's Taiex slipped 0.3% and New Zealand's NZX 50 dipped 0.2% on the day.

In Mumbai, the key benchmark indices regained positive zone in the closing hours as European stocks rose in early trade. The BSE 30-share Sensex was closed up 40 points or 0.20%, as Metal and Pharma stocks rose. Index heavyweight Reliance Industries edged higher.

Yesterday, the U.S., stocks rallied by steadily, as the markets saw a largely positive reaction to the passage of landmark healthcare reform. Nonetheless, the day's upside may have been limited by a number of overseas financial concerns. The major averages all finished comfortably in positive territory, building on last week's gains. The Dow advanced by 43.91 points or 0.4% to 10,786, the Nasdaq gained 20.99 points or 0.9% to end at 2,394 and the S&P 500 rose by 5.91 points or 0.5% to 1,166.

Crude oil futures witnessed a sideways session. The commodity slipped in the early Asian trades, rebounding from a low of $81.14 per barrel and was last seen hovering at $81.67, up 7 cents on the day. The prices rebounded and moved past US$81 a barrel on Monday as the U.S. currency weakened against the Euro.