Asian equities display uninspiring cues; Jakarta Composite nosedives over 5%

Stock markets in Asian region displayed mixed trends on the week’s first trading session as investors continued to remain cautious, lacking any catalyst to prop up sentiments. After seeing the sharpest collapse in last six months, the Indonesian benchmark witnessed yet another gut wrenching session of sell-off of over five percent and kept market participants worried. Renewed fears that a potential Greek Euro-zone exit and slowing economic growth in China, the world’s second largest economy, would stall global economic recovery, prompted investors across the Asian region to dump riskier asset classes and turn to safer haven. Cues from US markets over the weekend too remained subdued as investors wary of the risks posed by Europe's debt crisis remained cautious ahead of the extended weekend.

Barring the Indonesian Jakarta Composite, most other equity index in the region did not budge a great deal from their previous closing levels. Chinese markets too were trading lower after official reports showed the nation’s industrial companies' profits fell annually in April. Though, the benchmarks in Hong Kong, Singapore and Taiwan traded with a positive bias, however the upside for them was capped as Spain's deteriorating finances and a possible Greek exit from the euro weighed on investor sentiment, overshadowing an upbeat report on US consumer confidence.

Shanghai Composite eased 2.70 points or 0.12% to 2,330.86, Jakarta Composite got brutally lacerated by 204.34 points or 5.02% to 3,865.68, KLSE Composite inched down 0.64 points or 0.04% to 1,550.48 and Nikkei 225 fell 1.36 points or 0.02% to 8,579.03.

On the other hand, Hang Seng Index gained 69.79 points or 0.37% to 18,783.20, Straits Times Index added 0.16 points or 0.01% to 2,772.91 and Taiwan Weighted rose 25.97 points or 0.37% to 7,097.60.

South Korean markets remained closed on Monday for a public holiday on account of birthday of Gautama Buddha.