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April 2nd, 2013 
Peter Nolan
ASIAN markets have been mixed in the first full session after the Easter break, with Japanese shares sinking for a second straight day as the yen extends its recent gains.
The greenback came under renewed selling pressure on Tuesday after a weak set of US manufacturing data raised concerns about the economy, while the euro remains under pressure owing to political deadlock in Italy.
Tokyo fell 1.08 per cent, or 131.59 points, to 12,003.43 – a day after tumbling more than two per cent – while Sydney ended 0.38 per cent higher, adding 19.0 points to 4,985.5. Seoul lost 0.49 per cent, or 9.84 points, to 1,986.15.
Hong Kong rose 0.31 per cent, or 68.19 points, to 22,367.82 but Shanghai ended down 0.30 per cent, or 6.66 points, at 2,227.74 – its lowest finish since December 27.
Regional markets staged a slight rebound after suffering a sell-off over the past few weeks on the back of the bailout saga in Cyprus, which raised fears the eurozone crisis could flare up again, while Italy struggles to form a government more than a month after an election.
An improvement in manufacturing activity across Asia, including China, provided a little support, but news of a slowdown in the United States weighed on sentiment.
The US Institute for Supply Management said its manufacturing sector activity index came in at 51.3 in March, below the 54.0 per cent expected by analysts.
While anything above 50 indicates growth, the slowdown has raised fears over the strength of recovery in the world’s number one economy.
On Wall Street the Dow dipped 0.04 per cent and the S&P 500 gave up 0.45 per cent, in the first trading session since the two indexes closed at record highs on Thursday. The Nasdaq sank 0.87 per cent.
In New York forex trade on Monday the dollar slipped to 93.27 yen from 94.20 yen at the end of last week, while the euro also edged up to $1.2847 from $1.2818.
By mid-morning on Tuesday in Tokyo the greenback was quoted at 92.86 yen, while the euro sat at $1.2834.
The single currency was at 119.20 yen on Tuesday, from 119.82 yen on Monday.
The recent pick-up in the yen has hit Tokyo shares, which enjoyed a near 20 per cent rise over the first three months of 2013.
Investors have decided to shift back into the yen after selling it for several months on expectations the Bank of Japan’s new governor will introduce a more aggressive monetary easing policy.
Haruhiko Kuroda will lead his first policy meeting this week but analysts say markets have already priced in big spending measures and anything he announces will likely fall short of most expectations.
However, Atsushi Hirano, head of FX sales in Japan at the Royal Bank of Scotland, told Dow Jones Newswires: “There aren’t any big reasons for this selling. I doubt the sell-off will continue for long.”
Oil prices slipped, with New York’s main contract, West Texas Intermediate (WTI) light sweet crude for delivery in May, down 38 cents to $96.69 a barrel in the afternoon and Brent North Sea crude for May dropping 33 cents to $110.75.
Gold was at $1,599.32 an ounce at 0810 GMT (1910 AEDT) compared with $1,597.90 late on Monday.
In other markets:
– Taipei rose 0.18 per cent, or 13.94 points, to 7,913.18.
MediaTek gained 2.05 per cent to Tw$348.0 while Taiwan Semiconductor Manufacturing Co was 0.50 per cent lower at Tw$100.5.
– Manila closed 1.33 per cent lower, shedding 91.16 points to 6,748.43.
Ayala Land led the retreat, falling 1.91 per cent to 30.80 pesos, while Alliance Global Group dropped 0.24 per cent to 20.85 pesos and SM Investments eased 1.74 per cent to 1,130 pesos.
– Wellington fell 0.26 per cent, or 11.34 points, to 4,411.41
Contact Energy fell 3.3 per cent to NZ$5.51, while Kiwi Income Property lost 3 per cent to NZ$1.14, although Telecom was up 1.07 per cent at NZ$2.36.
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