By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- Asian markets mostly saw losses on
Tuesday, as optimism over a financial rescue deal struck between
Cyprus and its international lenders proved to be short lived.
Japan's Nikkei Stock Average declined 0.4%, Australia's
S&P/ASX 200 index lost 0.9% and South Korea's Kospi edged up
0.2%.
Stocks jumped in the Asia trading day on Monday after Cyprus
signed a deal to secure financial aid from its lenders which
protected insured deposit holders from paying for the deal.
However, European and U.S. stock markets ended lower on Monday
after later reports suggested that deposit holders in other ailing
European economies may be at risk in the future. Here's the gloss
on those Dutch minister's Cyprus comments.
"The relief rally that followed the 10 billion euros ($13
billion) Cyprus deal made way for growing concerns that this
approach may become the 'new norm' for any future bailout of
troubled banks," said Matthew Sherwood, head of investment research
at Perpetual Investments.
"More importantly, this demonstrates that government funds for
bank bailouts are near exhaustion and that the rules can be
re-written at any time by any authority," Sherwood added.
The dollar (USDJPY) traded at 94.09 yen early Tuesday, down 4%
so far this week as the Japanese unit saw some safe-haven
buying.
Weighing on the Japanese index Tuesday were real estate firms,
with Tokyu Land Corp. down 3.4% and Heiwa Real Estate Co. down
1.8%.
Exporters were also putting in a weak performance, with Mazda
Motor Corp. (7261.TO) down 4.4%, while Sony Corp. (SNE) moved lower
by 2.6%.
Amid the losses for Japanese exporters, their Korean rivals
advanced, with car maker Hyundai Motor Co. (HYMTF) moving higher by
0.2% and consumer electronics giant Samsung Electronics Co. (SSNLF)
rising 0.4%.
Miners dropped sharply in Australian trading, with Rio Tinto
Ltd. (RIO) down 2%, Paladin Energy Ltd. , off 3.5%, and PanAust
Ltd. lower by 4.4%.
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