Asian stocks mixed in middle of week

Investors still worried whether $1 trillion package will be sufficient for solving problems across Europe

Asian markets were mixed today on worries whether the $1 trillion package will be sufficient for solving problems across Europe. Frail overnight US cues and continued firm undertone in the US dollar in the early Asian moves hurt the sentiments. However, select markets fought their way out as the dollar fell towards the start of the London trades and bargain buying took the centrestage.

The Australian market ended on a positive note, as traders evinced fresh buying interest in select stocks at lower levels after the markets witnessed sharp decline in the past few trading sessions. Gold related stocks led the gains as bullion prices soared to fresh all time highs above $1240 an ounce. The benchmark S&P/ASX200 Index advanced 25.00 points, or 0.55% to 4,573, while the All-Ordinaries Index ended at 4,600, representing a gain of 26.50 points, or 0.58%.

On economic front, a report released by the Department of Education, Employment and Workplace Relations revealed that the country's leading employment index improved in May after declining for four consecutive months. As per the report, the leading employment index rose to minus 1.029 in May from minus 1.129 in April.

The Australian Office of Financial Management stated that the Treasury Bond issuance in 2010-11 is expected to be around A$56 billion. After accounting for maturities of A$18.8 billion, this represents a net growth of A$37 billion in the face value amount of Treasury Bonds on issue.

Stocks in Japan ended slightly lower though with the Nikkei 225 index closing down 0.16% at 10,394. Enthusiasm for corporate earnings began to wane in the wake of some less-than-impressive business forecasts from Toyota Motor. The giant automaker reported a net profit of Y209.46 billion and an operating profit of Y147.52 billion for the just-ended fiscal year- below market consensus.

Stocks in China ended higher as some bargain buying emerged after the market fell to fresh one year low earlier in the day. The banks and property companies managed a modest rebound after flurry of losses in the last few days even as renewed policy-tightening concerns and worries over Europe's debt crisis weighed on sentiment. The Shanghai Composite Index ended the day at 2,655.7 after twice dipping near the watershed mark of 2,600 points.

In Mumbai, The key benchmarks pared gains in late trade as US index futures fell. Interest rate sensitive banking and realty stocks rose as lower-than-expected growth in industrial production in March 2010 helped ease rate-hike worries. Index heavyweight Reliance Industries (RIL) edged higher. The BSE 30-share Sensex was provisionally up 38.58 points or 0.23%, up close to 155 points from the day's low and off close to 70 points from the day's high. The market breadth was weak

Telecom stocks extended losses for the second straight day after the telecom regulator suggested telecom firms to pay a one-time fee for holding radio-spectrum beyond 6.2 mega hertz (MHz) based on 3G prices. Bharti Airtel was down close to 8%. Two-wheeler major Bajaj Auto rose, reversing initial losses after robust Q4 results.

In other markets, the Hang Seng added 0.33%, Straits Times gained 0.79% while the Taiwanese stocks shed 0.08%.

In the U.S., stocks ended Tuesday's session on a mixed note, as a second look at the European bailout plan prompted a split reaction in the marketplace amid an otherwise light day on the economic front. The major averages ended on opposite sides of the unchanged mark after spiking up off of their lows in the previous session. The Nasdaq inched up by 0.64 points or less than a tenth of a percent to 2,375, while the Dow fell by 36.88 points or 0.3% to 10,748 and the S&P 500 slipped by 3.94 points or 0.3% to 1,156.

Dollar was mixed today, appreciating near 1.2600 initially and then slipping above 1.2700. Crude oil trades sideways with a rally above $76 facing tough resistance at $76.81 mark. Light sweet crude oil futures for June delivery trade at $76.66 a barrel in electronic trading, up 29 per barrel from previous close at $76.37 a barrel in New York on Tuesday.