Investing.com - Asian stocks were mixed on Wednesday, dropping on concerns a Spanish bank bailout fund may not be enough to solve the country's debt problems but buoyed on better-than-expected Japanese machinery data.
During Asian trading on Wednesday, Hong Kong's Hang Seng Index was down 0.11%, Australia's S&P/ASX200 was down 0.35%, while Japan’s Nikkei 225 Index was up 0.58%.
In Japan, core machinery orders rose by 5.7% in April, outpacing market calls for a 2.1% gain, which sent the yen falling against the dollar and stocks rising albeit at a tempered pace, as a cooing Chinese economy and a still-strong yen may crimp Japan's export sector.
Gains made in U.S. markets earlier pushed Japanese stocks up as well.
Still, uncertainty still gripped global markets just days in wake of a EUR100 billion bailout arranged by eurozone finance ministers for Spain to recapitalize its banks.
Concerns grew that Spain will still run into problems servicing its overall debt burden despite the rescue package.
Yields on Spanish 10-year bonds climbed to a record high of 6.82% in European trading earlier, not far from the 7% threshold that led to bailouts in Greece, Ireland and Portugal.
The yield on Italian 10-year bonds climbed to 6.27%, up from 6.17% earlier in U.S. and European sessions, which sparked selling in equities markets and demand for dollars as a safety play in Asia.
Meanwhile in Greece, elections will take place on June 17, when voters will elect a new parliament.
A strong showing by leftist politicians in favor of ditching austerity measures could lead to a coalition government willing to risk an end to bailout money by scrapping painful austerity measures such as tax hikes and wage cuts.
Such a scenario could see Greece abandoning the euro.
In Hong Kong, top decliners included Esprit Holdings, down 22.11%, Hang Lung Properties, down 2.56%, and Henderson Land, down 2.11%.
In Australia, top decliners included Cabcharge Australia, down 10.87%, Sundance Resources, down 9.33%, and art Energy, down 4.00%.
European stock futures indicated a lower opening.
France's CAC 40 futures pointed to a loss of 0.33%, while Germany's DAX 30 futures signaled a loss of 0.22%. Meanwhile, in the U.K., the FTSE 100 futures indicated a loss of 0.43%.
Dow Jones Industrial Average futures were up 0.34% while the S&P 500 futures were up 0.37%.
Later Wednesday, the eurozone will unveil official data on industrial production, while Germany is to hold an auction of 10-year government bonds.
The U.S. will release official data on retail sales as well as reports on producer price inflation, business inventories and crude oil stockpiles.
During Asian trading on Wednesday, Hong Kong's Hang Seng Index was down 0.11%, Australia's S&P/ASX200 was down 0.35%, while Japan’s Nikkei 225 Index was up 0.58%.
In Japan, core machinery orders rose by 5.7% in April, outpacing market calls for a 2.1% gain, which sent the yen falling against the dollar and stocks rising albeit at a tempered pace, as a cooing Chinese economy and a still-strong yen may crimp Japan's export sector.
Gains made in U.S. markets earlier pushed Japanese stocks up as well.
Still, uncertainty still gripped global markets just days in wake of a EUR100 billion bailout arranged by eurozone finance ministers for Spain to recapitalize its banks.
Concerns grew that Spain will still run into problems servicing its overall debt burden despite the rescue package.
Yields on Spanish 10-year bonds climbed to a record high of 6.82% in European trading earlier, not far from the 7% threshold that led to bailouts in Greece, Ireland and Portugal.
The yield on Italian 10-year bonds climbed to 6.27%, up from 6.17% earlier in U.S. and European sessions, which sparked selling in equities markets and demand for dollars as a safety play in Asia.
Meanwhile in Greece, elections will take place on June 17, when voters will elect a new parliament.
A strong showing by leftist politicians in favor of ditching austerity measures could lead to a coalition government willing to risk an end to bailout money by scrapping painful austerity measures such as tax hikes and wage cuts.
Such a scenario could see Greece abandoning the euro.
In Hong Kong, top decliners included Esprit Holdings, down 22.11%, Hang Lung Properties, down 2.56%, and Henderson Land, down 2.11%.
In Australia, top decliners included Cabcharge Australia, down 10.87%, Sundance Resources, down 9.33%, and art Energy, down 4.00%.
European stock futures indicated a lower opening.
France's CAC 40 futures pointed to a loss of 0.33%, while Germany's DAX 30 futures signaled a loss of 0.22%. Meanwhile, in the U.K., the FTSE 100 futures indicated a loss of 0.43%.
Dow Jones Industrial Average futures were up 0.34% while the S&P 500 futures were up 0.37%.
Later Wednesday, the eurozone will unveil official data on industrial production, while Germany is to hold an auction of 10-year government bonds.
The U.S. will release official data on retail sales as well as reports on producer price inflation, business inventories and crude oil stockpiles.