HONG KONG: Asian markets Tuesday bounced back from the previous day's big losses despite eurozone uncertainty after voters kicked out the ruling parties of France and Greece in a backlash against austerity.
The euro also managed to hold up as investors digested the results from Sunday, with some analysts suggesting the initial panic, which saw the single currency dive to a three-month low against the dollar, may have been too early.
However, the European problem remains in focus after Greek conservatives failed to form a government, paving the way for anti-austerity leftists to try to form a coalition.
Tokyo climbed 0.58 percent by the break, Hong Kong added 0.33 percent, Sydney gained 0.18 percent and Seoul was 0.50 percent higher, although Shanghai skidded 0.43 percent.
Regional investors sold heavily on Monday after France's Nicolas Sarkozy was ousted by Socialist Francois Hollande, who ran on a platform of spending instead of new cuts to boost the country's economy and tackle its huge deficit.
That came as the two main parties in Greece -- the conservative New Democracy and the left-wing Pasok -- were heavily beaten in a general election, with those opposed to austerity winning almost 60 percent support.
On Monday New Democracy failed in its attempt to form a coalition with the anti-austerity Syriza party, which would now be tasked with forming a government itself. The development has opened up the likelihood of fresh elections, adding to uncertainty. (AFP)