Asia stocks mixed amid caution; Europe gains

HONG KONG – Asian stocks were mixed Wednesday amid investor caution following the recent advance in the region's markets. European shares rose modestly in early trade.

Gold, meanwhile, set another record high and crude oil prices strengthened as the dollar resumed its slide, falling against the yen and the euro.

The directionless trade in Asia followed an erratic session on Wall Street and a string of recent gains as the weakening dollar increased investor appetite for stocks and commodities like gold and oil, which are priced in greenbacks and can provide a hedge against a frail U.S. currency.

But after several indexes touched new highs for the year, investors have become worried about the market overheating and started to book profits. There's a lack of conviction among many investors about the market's direction, analysts said.

"The markets are pretty much stretched," said Belle Liang, head of research at Core Pacific-Yamaichi International. "It's very hard to gauge where the market is going at this moment. You never know when the liquidity will dry up."

Early going in Europe, Britain's FTSE 100 rose 0.2 percent, Germany's DAX was up 0.4 percent and France's CAC 40 climbed 0.5 percent.

Japan and Hong Kong led the Asia's declines, with Tokyo's Nikkei 225 stock average losing 53.13 points, or 0.6 percent, to 9,676.80 and Hong Kong's Hang Seng shedding 73.82, or 0.3 percent, to 22,840.33.

Markets in India, Indonesia, Singapore and Thailand also fell.

Among higher markets, South Korea's key index rose 1.1 percent to 1,603.97 and Shanghai's benchmark was up 0.6 percent to 3,303.23. Shares in Taiwan and Australia were modestly higher as well.

Overnight in the U.S., the Dow Jones industrial average rose 30.46, or 0.3 percent, to 10,437.42.

The broader Standard & Poor's 500 index rose 1.02, or 0.1 percent, to 1,110.32, while the Nasdaq composite index rose 5.93, or 0.3 percent, to 2,203.78.

U.S. futures pointed to a slightly lower open Wednesday on Wall Street. Dow futures were down 3 points at 10,395 and S&P futures were off 1.1, or 0.1 percent, at 1,106.30.

Oil prices rose further, closing in on $80 barrel in Asia after an unexpected drop in U.S. crude supplies suggested demand could be improving.

Benchmark crude for December delivery was up 51 cents to $79.66 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 24 cents to settle at $79.14 on Tuesday.

Gold was trading up 0.6 percent at a new record of 1146.5.

In currencies, the dollar fell to 89.11 yen from 89.24 yen. The euro rose to $1.4917 from $1.4874.