Asia stocks rebound on bargain-hunting, but investors wary of Europe’s debt crisis

Asian stocks up, wariness over Europe debt crisis

TOKYO — Most Asian stock markets rebounded Wednesday on bargain-hunting following steep losses, but investors traded with caution on growing fears that Europe’s debt crisis could hamper global economic growth.

Japan’s benchmark Nikkei 225 stock average rose 25.57 points, or 0.3 percent, to 9,485.46 in the morning session after tumbling 3.1 percent to a six-month low Tuesday.

South Korea’s Kospi index slipped 0.3 percent to 1,555.62 while Australia’s S&P/ASX 200 index was up 1.3 percent at 4,341.30.

Hong Kong’s Hang Seng index rose 1 percent to 19,177.34. Benchmarks in mainland China, Singapore and Taiwan posted gains in early trading.

Apart from worries over Europe’s fiscal crisis, Asian markets have been hit by escalating tensions on the Korean peninsula after North Korean leader Kim Jong Il reportedly ordered his military to prepare for combat.

South Korea last week blamed North Korea for a March torpedo attack that sank a South Korean warship, killing 46 sailors.

In New York overnight, the Dow Jones industrials average fell 22.82 points to 10,043.75. Before the closing bell, the Dow briefly lost nearly 300 points.

Investors are jittery that austerity measures by European nations, including Spain and Italy, will not be enough to fix the region’s fiscal problems, and such cost-cutting steps could stifle global economic growth.

In currencies, the dollar fell to 90.04 yen in Tokyo from 90.32 yen in New York late Tuesday. The euro declined to $1.2285 from $1.2372.

Benchmark crude for July delivery was up 76 cents at $69.52 a barrel in electronic trading on the New York Mercantile Exchange.