Asian markets up after heavy sell off

Asian markets climbed on Tuesday and the euro regained some losses as traders cooled the heavy sell-off seen recently because of fears over the eurozone.

With not much to boost sentiment following the weekend, analysts said that there was a chance to buy after the majority of regional bourses dropped into negative territory, the first time they have done so this year. Investors were hoping finance ministers may take steps to combat the debt crisis in Europe in a conference call later on Tuesday.

Tokyo finished on 86.37 points, or up 1.04 per cent, at 8,383.00, Hong Kong had climbed by 0.54 per cent, and Sydney closed on 58.7 points, or 1.47 per cent, higher at 4,043.7 following the central bank’s decision to reduce interest rates. Seoul finished on 18.72 points, up 1.05 per cent, at 1,801.85, although Chinese shares remained flat during afternoon trade.

In spite of the gains, signs of concern remained about the worsening global outlook. Australia reduced interest rates by 25 basis points to 3.50 per cent because of worries over the crisis in Europe and cooling growth in China, a key trade partner. The cut comes on top of the Reserve Bank of Australia’s 50 basis-point cut announced in May and sees them at a level last seen in November 2009 during the booming mining economy.