Most Asian markets closed little changed Tuesday, as a gain in oil prices and mixed results from U.S. companies led many investors to hold back after a two-day rally and wait for direction from Wall Street.
Japan led the region, with the benchmark Nikkei 225 index jumping 2.98 percent to 13,184.96.
Its market was partly playing catch up with other Asian bourses that rose sharply on Monday, when the Tokyo exchange was closed for a national holiday. Investors there also saw Bank of America Corp.'s better-than-expected results as a positive sign for the U.S. financial sector.
Elsewhere, Hong Kong's blue-chip Hang Seng Index was virtually flat, about 0.02 percent lower, at 22,527.48 points. Markets in Australian, South Korean and New Zealand were off around 0.1 percent; China's main-index lost 0.5 percent.
Wall Street ended mixed overnight, with Apple Inc.'s stock falling despite solid earnings results as investors focused on its cautious guidance for the current quarter. American Express Co. shares tumbled as well after it reported a quarterly loss.
After gains over the last two sessions, many Asian markets were now pausing to see how Wall Street reacted overnight, analysts said.
"Investors are waiting for the U.S. markets to go down. That's really affecting performance today," said Ernie Hon, an analyst with ICEA Securities in Hong Kong. "Oil is also putting some pressure on the market."
Light, sweet crude for August delivery rose US$2.16 overnight to settle at US$131.04 a barrel on the New York Mercantile Exchange, and traded near that level in electronic trade Tuesday in Asia.
In Japan, the Nikkei index was boosted by gains in energy-linked stocks on the rebound in oil prices. Automakers and financials also led the way.
Japan's top automaker, Toyota Motor Corp., increased 5.59 percent, and Honda Motor Co. rose 5.26 percent.
Banking giant Mizuho Financial Group Inc. added 3.33 percent. Nippon Oil Corp., Japan's largest refiner, jumped 4.59 percent.
Hong Kong's session was marked by volatility and thin trading volume.
Airlines were lower because of the firm oil prices. Cathay Pacific lost 3.2 percent, and China Southern slipped 4.3 percent.
In other stocks, computer maker Lenovo dropped more than 5 percent after JPMorgan downgraded the stock to "neutral," citing weak demand in China. Aluminum Corp. of China, known as Chalco, shed 3.3 percent on an analyst downgrade as well.
Chinese stocks had a mixed performance as refiners and airlines fell on oil worries. Other major issues were largely unchanged.
The benchmark Shanghai Composite Index fell 0.5 percent to close at 2,846.12.
China Petroleum & Chemical Corp., also known as Sinopec, Asia's biggest refiner by volume, slid 2.1 percent. That followed a report by China's petroleum industry association that losses at Chinese refiners would increase sharply in the first half of the year due to government controls that limit their ability to pass on rising crude costs to consumers.
China's biggest oil producer, PetroChina Ltd., fell 1.2 percent. Air China Ltd., China's biggest airline, fell 2.7 percent. China Eastern Airlines Corp. dropped 1.8 percent.
Other industries saw mixed results. Industrial & Commercial Bank of China Ltd., the country's biggest commercial lender, fell 0.79 percent while No. 2 Bank of China Ltd. rose 0.25 percent.
In currencies, the dollar traded at 106.50 yen midafternoon in Tokyo, little changed from 106.49 yen late Monday in New York. The euro stood at US$1.5922, compared with US$1.5917.
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