Buoyed by Greek election results, that has at least dispelled concerns of the country exiting euro currency union, Asian and European stocks climbed as much as two per cent earlier in the day.
While most of the major Asian markets, barring India, closed with significant gains, the rally in European stocks seemed to fizzle on concerns about Spanish and Italian debt.
From London to Frankfurt, shares were either flat or marginally lower after giving away the early gains. London Stock Exchange's FTSE 100 dipped to 5,482.22 points while the Euro Stoxx 50 -- benchmark banking index -- slightly dropped to 2,177.34 points.
France's benchmark Cac 40 was slightly higher at 3,096.29 points. German key index Dax too was marginally up at 6,276.60 points.
The election results from Greece, where the pro-bailout New Democracy Party and socialist PASOK party are all set to form a coalition government, came as a relief for edgy global financial market since fears of the nation exiting euro zone has receded, at least for now.
However, the rising Spanish and Italian bonds yields have spooked investor sentiment. Higher yields indicate the rising risk perception about these bonds.
More From This Section
Earlier in the day, majority of the Asian shares closed in the positive territory. Japan's Nikkei 225 jumped nearly two per cent to end at 8,721.02 points while Hong Kong' Hang Seng went up one per cent to 19,427.81 points.
South Korean index Kospi rose about two per cent to close at 1,891.71 points.
India's 30-share Sensex tumbled 1.44 per cent to 16,705.83 points as investors were disappointed by the Reserve Bank's decision to key rates unchanged contrary to hopes of relaxed monetary policy to bolster the slowing economy.