Asian stock markets were mixed on Tuesday, with financials dragging the Hong Kong market lower while Australia and S.Korea were supported by gains on Wall Street as global investors held out hope that a bailout will materialize for debt-ridden Greece.
Japan's Nikkei average was flat on Tuesday after giving up early gains, with automakers such as Toyota Motor weighing on the market even as chip-linked stocks rose to stem further losses.
Astellas Pharma lost 1.4 percent after launching a $3.5 billion hostile bid for U.S. firm OSI Pharmaceuticals
to gain access to blockbuster Tarceva cancer drug, in the latest move by a Japanese drugmaker to expand overseas.
But trade was thin and analysts said investors were wary after a wave of data cast doubt on the pace of the U.S. economic recovery, even though some were hoping that Greece may be nearing a deal with EU governments to get some kind of emergency aid.
There was speculation that a visit to Athens by EU Economic Affairs Commissioner Olli Rehn and European Central Bank Executive Board member Juergen Stark could move EU governments closer to a deal, but uncertainty remained over whether the other governments would agree on support.
Hong Kong shares fell on Tuesday, with selling triggered by disappointing HSBC earnings dominating trade, but bargain hunters may snap up Chinese banks on hopes China's loose monetary policy will stay in place.
The benchmark Hang Seng Index was down 0.75 percent at 20,898.46.
HSBC fell more than 6 percent to a session low of HK$80.60, its lowest in more than two weeks, after its 2009 profit of $7.1 billion compared with $9.3 billion in 2008, short of the $11.4 billion forecast in a Thomson Reuters I/B/E/S poll.
HSBC unit Hang Seng Bank fell 5.6 percent to a three-week low after the bank reported a 6.2 percent drop in 2009 profit to HK$13.22 billion, against consensus forecast of HK$13.29 billion.
China Merchants Bank rose 5.1 percent to HK$20.80, its highest since Jan. 8, before steadying at HK$20.25. The country's sixth-largest bank said it would launch a previously announced A- and H-share rights issue this week to raise 22 billion yuan ($3.2 billion) to consolidate its capital base.
In Southeast Asia, the Straits Times Index rose 0.2 percent to 2779.09 points.
