Asia stocks mostly lower as euro zone debt woes weigh

Investing.com - Asian stock markets were mostly lower on Tuesday, as renewed concerns over the sovereign debt crisis in the euro zone and global growth worries continued to weigh on investor confidence.

During late Asian trade, Hong Kong's Hang Seng Index eased up 0.1%, Australia’s ASX/200 Index added 0.2%, while Japan’s Nikkei 225 Index slumped 0.8%.

Appetite for riskier assets weakened on Monday amid mounting fears over the outlook for global economic growth.

Weak manufacturing data out of the euro zone and China, combined with political uncertainty in France and the Netherlands prompted investors to shun riskier assets, driving global equities lower.

There have been renewed concerns of further debt contagion in the euro zone in recent weeks amid fears Spain will be the next in the euro zone to require a bailout.

The news weighed on financial sector stocks in Japan, with Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group slumping 2.3% apiece, while investment bank Nomura Holdings declined 2.6%.

Exporters with high exposure to Europe retreated, with digital camera maker Canon down 1.05% and Sony dropping 1.65%.

On the upside, technology firm Advantest rallied 4.45% after the Nikkei Newspaper said that the chip equipment maker was set to report strong quarterly sales and a return to operating profit.  

Shares in All Nippon Airways climbed 4% after saying it would likely double its dividend to JPY4 per share for the year ended March 31 after hiking its profit forecast for the period due to cost-cutting and strong demand.

Elsewhere, shares in Hong Kong swung between modest gains and losses throughout most of the session.

Trading volumes were light according to market participants as traders stuck to the sidelines ahead of a number of key corporate earnings later in the week.

Financial sector stocks and property developers were mixed, with Sino Land climbing 2.5% and China Construction Bank gaining 0.5%, while Industrial and Commercial Bank of China dropped 0.8% and China Overseas Land and Investment down 0.95%.

Meanwhile, in Australia, shares rose on the back of a report showing that consumer price inflation rose a modest 0.1% in the first quarter, far below expectations for a 0.7% increase.

The softer-than-expected inflation reading opened the door for a rate cut by the Reserve Bank of Australia as early as next week, boosting shares in the financial sector.

Westpac Banking Group surged 1.8%, ANZ Banking Group rose 1.2% and Commonwealth Bank of Australia added 0.5%.

Shares in conglomerate Wesfarmers advanced 1.9% after sales at its Coles grocery store chain rose nearly 5% in the third quarter.

On the downside, gold miner Newcrest Mining saw shares tumble 3.7% after the company cut its full-year output guidance after heavy rains hit production at key operations.

Looking ahead, European stock markets were set to rebound from heavy losses on Monday, but gains were expected to be kept in check amid ongoing concerns over the debt crisis in the euro zone.

The EURO STOXX 50 futures pointed to a gain of 0.5%, France’s CAC 40 futures indicated a rise of 0.4%, Germany's DAX futures added 0.6%, while London’s FTSE 100 futures edged 0.3% higher.

Later in the day, the euro zone was to produce official data on industrial new orders, followed by a report on the business climate in Belgium.

In the U.S., a report was to be released on house price inflation, as well as a Conference Board report on consumer confidence and government data on new home sales.