Asian stocks moved higher on Tuesday
Asia stocks moved higher Tuesday to
take back some losses made the previous day, when investors reacted to news
that a bailout for Cyprus would include a tax on bank deposits.
Japan’s Nikkei Stock Average rose
2%, South Korea’s Kospi advanced 0.6%, and Australia’s S&P/ASX 200 index rose 0.5%.
Hong Kong’s Hang Seng Index also
ticked up 0.5%, while the Shanghai Composite index advanced 0.3%.
Monday’s market action saw U.S.
stocks fall but then creep back to end well off session lows. Earlier in the
global day, Asian investors had suffered deep losses on news that Cyprus
planned a one-off tax on bank deposits as part of a 10 billion euro ($12.9
billion) bailout deal, agreed with international creditors.
“Markets look a bit calmer as the
panic following the news of levy of bank deposits in Cyprus as part of a €10
billion bailout for the country, eased,” Crédit Agricole’s Asia head of global
market research Mitul Kotecha said of Tuesday’s early stock action.
“There’s no sign of bank runs
elsewhere in the euro zone, and the go-ahead to make the deposit levy more
progressive while maintaining the total amount at around €5.8 billion has
helped to calm tensions,” said Kotecha.
