Asian stocks
struggled to maintain their gains on Tuesday as investors worried that Italy could fall next under the pressure of Europe's debt crisis, even though Greece seemed to be edging
back from trouble as another bailout looked imminent.
Benchmark oil hovered above $95 per barrel, while the dollar was higher against the euro and the yen.
Japan's Nikkei 225 index fell 1.3 per cent to 8,651.48. South Korea's Kospi swung into negative territory midsession, slipping 0.9 per cent to 1,902.64. Hong Kong's Hang Seng was 0.1 per cent higher at 19,715.93 and Australia S&P/ASX 200 rose 0.5 per cent to 4,293.80.
Benchmarks in Malaysia, Indonesia, the Philippines and New Zealand were higher. Shares in mainland China and Singapore swung between gains and losses much of the session.
Wall Street finished higher on Monday on news that Greece would receive the latest installment of emergency aid as long as the country's two main parties commit to implementing economic reforms agreed to by the country's previous government.
The Dow rose 0.7 per cent to close at 12,068.39. The Standard & Poor's 500 index rose 0.6 per cent to 1,261.12. The Nasdaq rose 0.3 per cent to 2,695.25.
Meanwhile, as
Greece's economy hobbled along on life support, worries began to surface about Italy, where the prospect of financial disaster was real because of Rome's huge debts and slow growth.
Unlike Greece, Ireland and Portugal - the three countries that Europe has already bailed out - Italy's economy could be too large to rescue.
Soaring borrowing rates in the past week have intensified pressure on Premier Silvio Berlusconi to resign.
The euro was lower at $1.3745 from $1.3761 on Monday in New York. The dollar was slightly higher at 78.04 yen from 78.02 yen.
With inputs from agencies
Special 
