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 Oil prices fell below $94 a barrel, while the dollar was higher
against the euro and the yen.
Shares were mostly lower in early European trading. Britain's FTSE
100 fell 0.1 percent to 5,770.34. Germany's DAX added 0.2 percent to
7,296.54, while France's CAC-40 was down 0.1 percent at 3,872.88.
Wall Street was set to move lower after four sessions of gains, with
Dow Jones industrial futures losing 0.1 percent at 12,076 and S&P
500 futures 0.2 percent down at 1,285.70.
Investor sentiment shriveled after Amsterdam-based Royal Philips
Electronics NV issued a profit warning, saying worse-than-expected
demand in Western Europe hurt its performance in the second quarter.
Earlier in Asia, markets were generally higher as the euphoria from
a vote of confidence in the Greek government helped push markets up.
Japan's Nikkei 225 index gained 1.8 percent to close at 9,629.43,
with export-focused stocks shooting up on a weakening yen, which
makes products heading overseas less expensive.
Consumer electronics giant Sony Corp. jumped 3.7 percent. Toshiba
Corp. rose 2.8 percent, and Hitachi Ltd. was up 3.1 percent.
Confidence was boosted after the Greek government won a crucial vote
of confidence, raising the likelihood that the country will push
through budget cuts required to get the latest installment of
emergency loans. Worries that a default by Greece could lead to a
wider financial crisis have been dragging on markets since early
May.
"In the short term, people have become more optimistic because the
Greek crisis seems to be resolved," said Castor Pang, head of
research at Core Pacific-Yamaichi in Hong Kong.
He said markets would remain "calm" if the U.S. Federal Reserve,
which began a two-day policy meeting Tuesday, does not announce
another round of bond buying, or quantitative easing, to help boost
the economy once the current program ends late this month.
Resources and heavy machinery producers -- companies whose profits
are closely tied to global economic growth -- had strong gains. Hong
Kong-listed Zijin Mining Group, China's biggest gold miner, rose 2.2
percent. Australia's BHP Billiton, the world's largest mining
company, rose 1.1 percent. Japan's Komatsu Ltd., one of the world's
leading equipment makers, jumped 2.5 percent.
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 Hong Kong's Hang Seng was marginally higher at 21,859.97 and South
Korea's Kospi rose 0.8 percent to 2,063.90. Australia's S&P/ASX 200
gained 0.5 percent to 4,532.60. Benchmarks in Taiwan, Indonesia and
the Philippines also rose.
Mainland Chinese shares were mixed, overshadowed by a government
forecast that inflation will climb further in June due to massive
flooding in some regions.
The benchmark Shanghai Composite Index edged 0.1 percent higher to
2,649.30 while the Shenzhen Composite Index was little changed at
1,088.30. Shares in power generators, steel and real estate lead the
declines, while a slight advance by PetroChina, the Shanghai
benchmark's heaviest-weighted share, helped offset losses in other
sectors.
On Wall Street Tuesday, the S&P 500 index rose 1.3 percent to close
at 1,295.52. The last time the S&P rose four days straight was at
the end of May. The Dow Jones industrial average rose slightly less
than 1 percent to 12,190.01. The Nasdaq composite rose 2.2 percent
to 2,687.26.
Benchmark oil for August delivery was down 29 cents to $93.88 a
barrel in electronic trading on the New York Mercantile Exchange.
The contract rose 54 cents to settle at $94.17 on Tuesday.
In currencies, the euro slipped to $1.4389 from $1.4416 in late
trading in New York. The dollar strengthened to 80.18 yen from 80.13
yen.
[Associated
Press; By PAMELA SAMPSON]
Copyright 2011 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed.
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