Equity indices in Asia finally showed some recovery on Tuesday as sentiments in the region got buttressed on hopes that the US economy will pick up pace and grow by around 2% to 2.5% next year, buoying the prospects for the region's exporters. Though all major indices in the region traded on a positive note, their gains were less pronounced as concerns over Euro-zone debt crisis persisted even as regional tensions after the death of North Korea's Kim Jong-Il subsided. ECB President's remarks that the European economic outlook faced substantial downside risks weighed on sentiments keeping the upside momentum for the major indices in the region under check. The Euro-zone finance ministers agreed on a 150 billion euro contribution to the IMF to help support debt markets but the resource fell short of the 200 billion euros proposed at the December 9 EU leaders’ summit.
The benchmark in South Korea, which got thrashed by around three and half a percent in the previous session, bounced back in the session and traded with around a percent gains however, upside chances for the index was limited as uncertainties regarding the North Korea lingered. Shares in Japan snapped a five- day losing streak, and traded with around half a percent gains as reports suggested the US economy is in a better shape than forecasted earlier.
Shanghai Composite added 3.45 points or 0.16% to 2,221.68, Hang Seng climbed 98.25 points or 0.54% to 18,168.46, Jakarta Composite rose 8.83 points or 0.23% to 3,779.11, Nikkei 225 gains 47.46 points or 0.57% to 8,343.58, Straits Times inched up 2.73 points or 0.10% to 2,620.82, Seoul Composite surged 16.52 points or 0.93% to 1,793.45 and Taiwan Weighted ascended 40.21 points or 0.61% to 6,673.54.