Asia stocks swing between gain, loss as Greece weighs on outlook

Asian stocks swung between gains and losses, with the regional benchmark index trading near a five month high, as investors await the outcome of a second round of negotiations in Greece.

Japan Tobacco Inc paced advancing shares after the company raised its earnings forecast. Chinese stocks dropped as the Ministry of Industry and Information Technology said the world’s second-largest economy faces more uncertainty.

The MSCI Asia Pacific Index gained 0.1 per cent to 124.99 at 12:39pm in Tokyo after falling as much as 0.1 per cent and rising as much as 0.3 per cent. Hong Kong’s Hang Seng Index erased gains to swing between gains and losses.

Japan’s Nikkei 225 Stock Average fell 0.3 per cent, while the broader Topix Index advanced 0.2 per cent. Australia’s S&P/ASX 200 Index fell 0.4 per cent, erasing an earlier rally, after the nation’s central bank unexpectedly kept its benchmark interest rate unchanged. South Korea’s Kospi Index climbed 0.1 per cent.

Greek Prime Minister Lucas Papademos began a second round of negotiations with international creditors in Athens to stave off default as political leaders waver on budget measures.

Greece still needs to detail €600 million ($787m) of fiscal measures for 2012, a government official said in Athens yesterday.