Asian markets mostly flat after rally

Japan led the region, with the benchmark Nikkei 225 index jumping 2.98 percent to 13,184.96.

Its market was partly playing catch up with other Asian bourses that rose sharply on Monday, when the Tokyo exchange was closed for a national holiday. Investors there also saw Bank of America Corp.'s better-than-expected results as a positive sign for the U.S. financial sector.

Elsewhere, Hong Kong's blue-chip Hang Seng Index was virtually flat, about 0.02 percent lower, at 22,527.48 points. Markets in Australian, South Korean and New Zealand were off around 0.1 percent; China's main-index lost 0.5 percent.

Wall Street ended mixed overnight, with Apple Inc.'s stock falling despite solid earnings results as investors focused on its cautious guidance for the current quarter. American Express Co. shares tumbled as well after it reported a quarterly loss.

After gains over the last two sessions, many Asian markets were now pausing to see how Wall Street reacted overnight, analysts said.

"Investors are waiting for the U.S. markets to go down. That's really affecting performance today," said Ernie Hon, an analyst with ICEA Securities in Hong Kong. "Oil is also putting some pressure on the market."

Light, sweet crude for August delivery rose US$2.16 overnight to settle at US$131.04 a barrel on the New York Mercantile Exchange, and traded near that level in electronic trade Tuesday in Asia.

In Japan, the Nikkei index was boosted by gains in energy-linked stocks on the rebound in oil prices. Automakers and financials also led the way.

Japan's top automaker, Toyota Motor Corp., increased 5.59 percent, and Honda Motor Co. rose 5.26 percent.