Stock markets in Asia were mixed on Tuesday, with shares in Tokyo gaining over two per cent, as the weaker yen enticed buyers while nerves over Cyprus' bailout plan subsided.

The benchmark Nikkei 225 index closed up 247 or 2.03% at 12,468 while the broader Topix added 1.7% to 1,045 in thinner than usual trading. The Hang Seng retreated 41 points or 0.19% to 22,041 in Hong Kong.

As part of its €10bn bailout announced at the weekend to save the country from default and recapitalise its banking sector, Cyprus proposed imposing a levy on customer accounts.

Stock markets endured a steep sell-off on Monday on worries about contagion to other Eurozone nations such as Spain and Italy.

The controversial plan also enraged Cypriots and prompted fears of a bank run. Cyprus has closed its banks until Thursday.

However by Tuesday market panic about Cyprus receded as the nation's finance ministry announced that bank depositors with savings under €20,000 would be exempt from the levy.

As fears about Cyprus cooled, bargain hunters took the opportunity to scoop up recently sold off stocks such as Canon, Sony and Fanuc. The weaker yen also boosted interest in exporters.

Mazda Motor rallied 5.6% while Nikon Corp gained 3.4% in Tokyo.

In Hong Kong, shares of property developer Wharf beefed up 1.7% while personal computer giant Lenovo rallied 2.7%

Internet heavyweight Tencent dropped 1.5% ahead of its full year results on Wednesday.

Financials were mostly weaker as worries over Cyprus lingered in Hong Kong.

Ping An insurance lost 1.5%, Bank of East Asia fell 0.97%, Bank of China eased 0.6% while Hang Seng Bank retreated 0.16%.



CJ

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