Asian stocks mixed as caution offsets encouraging economic data; European shares lower

Asia stocks mixed amid caution; Europe opens down

HONG KONG — Asian stocks were mixed Tuesday as a mood of caution following a three-month rally offset more signs that the global recession is starting to let up. European markets fell in early trade.

Oil prices hovered around $68, while Japanese car companies like Toyota and Nissan climbed after General Motors Corp.’s bankruptcy removed some uncertainty about the fate of this once-mighty American corporate icon.

Investors got another dose of positive U.S. economic news overnight with better-than-expected readings on manufacturing, consumer spending and construction spending. Gauges of manufacturing in Europe and Britain were similarly less dismal.

For some traders that reinforced what upbeat surveys about China’s manufacturing indicated the day before: that global economic activity is stabilizing.

Evidence to that effect has helped push world equities markets sharply higher since March, with some emerging markets like China and India up more than 50 percent for the year. Liquidity brought on by government measures has only accelerated money into stocks — hot money some market watchers say could continue flowing for some time.

“So many investors think the markets have already seen the worst … there’s just so much money waiting to buy,” said Khiem Do, a Hong Kong-based fund manager who helps oversee about $8.5 billion of Asian equities at Baring Asset Management.

In early European trade, Britain’s FTSE 100 lost 1.1 percent, Germany’s DAX fell 0.2 percent and France’s CAC-40 was down 0.5 percent. U.S. stock futures were down slightly, pointing to a lower open on Wall Street. Dow futures were down 21 points, or 0.2 percent, to 8,667 while S&P 500 futures were down 2.2, or 0.2 percent, to 936.90.

Earlier in Asia, Japan’s benchmark Nikkei 225 stock average added 26.56 points, or 0.3 percent, to 9,704.31, setting a fresh eight-month high. Australia’s index added 1.6 percent and Shanghai’s benchmark was up 0.1 percent.

But Hong Kong’s Hang Seng lost 2.7 percent to 18,389.08 after jumping 4 percent the previous session. South Korea’s Kospi gave up early gains to trade down 0.2 percent amid more concerns North Korea is preparing to launch three or four medium-range missiles.

Elsewhere, India’s Sensex was off 0.5 percent and Singapore’s market lost 0.4 percent.

In New York overnight, the Dow rose 221.11, or 2.6 percent, to 8,721.44, its highest close since early January. The Standard & Poor’s 500 index rose 23.73, or 2.6 percent, to 942.87, while the Nasdaq composite index rose 54.35, or 3.1 percent, to 1,828.68.

Oil prices were down slightly in Asian trade, the benchmark contract off 65 cents at $67.92 a barrel. The contract surged $2.27 overnight.

In currencies, the dollar was higher at 96.44 yen from 96.39 yen, while the euro slipped to $1.4122 from $1.4167.