Shares trim gains in choppy trade, Spain drags


13/06/2012 08:11 AST  Guardian.co.uk

Asian shares trimmed earlier gains in choppy trade on Wednesday, with worries over contagion from Spain's banking sector heightening after the country's bond yields hit record peaks.

MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> inched up 0.1 percent to 396.76, after earlier climbing as much as 0.4 percent.

The index has since Monday held above its 21-day moving average, a short-term technical level closely followed by hedge funds and investment banks. But it faces firm resistance at 401.50, where rebound attempts failed twice in late May.

Australian shares <.AXJO> reversed course to fall 0.5 percent, leading declines in Asia. "I'm not even thinking about upside at the moment. It's more a case of switching ... out of riskier stocks into more defensive names," said Phillip Weinberg, a dealer at Karara Capital in Melbourne.

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