Asia Pacific Markets Volatile with Mixed Closes (MarketWatch) (04-03-2008)

HONG KONG (MarketWatch) -- Asian markets were volatile on Tuesday; Australian stocks declined on financials after the rate hike by the central bank, while Indian stocks recouped some of their losses from the previous session.

Japanese shares also turned volatile, as the Nikkei seesawed between negative and positive on declines by financials such as Mizuho Financial Group (-1.89%) which were offset by bargain buying in exporters. Hong Kong stocks reversed early gains on China-related issues such as China Life Insurance Co.

Australia's S&P/ASX 200 ended 0.5% lower at 5,380.30, taking its losses into a fourth session. Here, banking shares recovered in late trading, after moving in negative territory for most of the session.

The Reserve Bank of Australia Tuesday lifted its benchmark lending rate by a quarter percentage point to 7.25%, the highest level since December 1994, citing rising inflationary pressures against a backdrop of cooling global growth. The move was expected.

Elsewhere in the region, the Nikkei 225 was hardly changed and closed at 12,992.28. The broader Topix index declined 0.4% to 1,265.66.

In Hong Kong, the Hang Seng Index dropped 1.4% to 23,265.53 by late afternoon, unable to sustain early gains after rising as high as 23,923.20., while the Shanghai Composite index dropped 2.6% to 4,322.35, also giving up early advances.

Source: MarketWatch