Asian markets gain as crude eases, concerns remain

Asian markets gained on Wednesday as oil prices eased after OPEC said they may consider producing more oil if the demand rises. However, investors remained jittery as crisis in Libya continued.

Japan's Nikkei added 64 points to 10,589. Earlier in the day, the index crossed an important resistance level. Investors continued to take cautious steps ahead of Friday's Nikkei futures & options expiry, leading to thin volumes.

Markets in Japan brushed off an earthquake in the northern coast and cheered better-than-expected machinery orders data. January core machinery orders increased 4.2% (m-o-m) as against a 1.7% rise in December.

The Organization of the Petroleum Exporting Countries (OPEC)  may boost supply to offset the disruption in Libya. The move signals the group's determination to control oil prices.

Oil prices dipped for the third consecutive day to $113.65 a barrel.

"Oil has stopped rising for now, but it hasn't really retreated to levels that allow aggressive buying in risky assets, so investors will still be jittery," said Hiroichi Nishi, general manager at Nikko Cordial Securities.

Energy stocks succumbed after its recent rally as oil prices dropped.

Hang Seng gained 98 points at 23,810. Seoul Composite and Taiwan Weighted remained almost unchanged. Shanghai Composite managed to close on a flat note after 3% rally in the last three days, rising above the key 3,000-points level in the process. Dropping commodity prices led to losses for coal and gold producers. Banking stocks remained strong.

Meanwhile, Euro fell against the $ after Moody's rating downgrade for Greece. European sovereign debt crisis spooked investors in Asia and Europe. European bourses were flat in late noon trades. FTSE dropped six points to 5,968. CAC and DAX were up around four points each at 4,020 and 7,202, respectively.