Asian stocks erased early modest gains on Tuesday, while the euro steadied but remained vulnerable after overnight comments from the European Central Bank chief heightened expectations of easing steps in the euro zone.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dipped about 0.1 percent, after opening higher, as investors locked in profits following its rise to a one-year high on Monday. Japan’s Nikkei stock average .N225 was a regional standout, adding about 0.9 percent after marking its highest intraday level since early April.
“Short covering has been continuing since last week’s strong China PMI data and U.S. housing data,” said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. “The main buyers are short-term investors like derivatives players and hedge funds.”
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