Asian stocks slip amid euro uncertainty

Asian stocks drifted mostly lower today, as persistent worries over European policymakers’ ability to contain the continent’s simmering debt crisis outweighed a big US rally.

Japan’s Nikkei 225 index gained 0.3% to 8,565.15 but South Korea’s Kospi dropped 0.1% to 1,852.87. Hong Kong’s Hang Seng was nearly unchanged at 18,886.45.

Australia’s S&P/ASX 200 fell 0.4% to 4,058.30. Benchmarks in New Zealand and Singapore fell. Taiwan and mainland China’s Shanghai Composite Index rose slightly.

Some markets saw a small bounce in early trading following a US rally on comments by a Federal Reserve official in support of more measures to stimulate the economy.

But the optimism soon faded. Investors are still wary about the situation in Europe.

In Spain, ratings agency Fitch downgraded 18 banks and benchmark borrowing hit its highest level.

In Greece, investors are nervously looking ahead to an election on Sunday to see if a party that has vowed to throw out the country’s bailout agreement will win.

“Ahead of the Greek election, the market will likely continue to be range-bound, with support from the hope of more stimulus,” strategists at Credit Agricole CIB said in a research note.