Asian markets recover after heavy losses (AFP) (26-05-2010)

HONG KONG (AFP) – Asian stocks staged a recovery on Wednesday as bargain hunters went shopping after the huge losses on the previous session, although gains were limited by lingering fears about European debt and tensions on the Korean peninsula.

Seoul closed 1.36 percent, or 21.29 points, higher at 1,582.12 after plunging Tuesday following unconfirmed reports that the North had put its civilians and army on combat alert.

Tokyo's Nikkei ended 0.66 percent, or 62.77 points, higher at 9,522.66 and Sydney picked up 0.98 percent, or 41.9 points, to close at 4,307.2.

Shanghai added 0.31 percent and Hong Kong was up 1.20 percent by the break. Singapore was 1.78 percent up.

Fears persisted about tensions on the Korean peninsula, after Pyongyang said it was cutting all ties with its neighbor.

It was the latest phase of a row that began last week when an international panel concluded a North Korean submarine had torpedoed one of Seoul's warships in March.

The South announced a package of reprisals on Monday but the North has threatened full-scale war if there is any attempt to punish it.

Source: AFP