Asian shares mixed amid Japan atomic fears

With few catalysts to spur buying, dealers returned their attention to Japan where crews at Fukushima have begun dumping radioactive water into the Pacific Ocean to prevent even more dangerous material from being released.

Tokyo's Nikkei slipped 1.06 per cent, or 103.34 points, to end at 9,615.55, while Sydney gained 0.27 per cent, or 13.3 points, to 4,900.1.

Seoul gained 0.69 per cent, or 14.56 points, to 2,130.43 and Singapore rose 0.50 per cent.

Markets in China, Hong Kong and Taiwan were closed for public holidays.

The losses follow a strong performance on Monday, when investors were buoyed by strong jobs figures out of the United States that suggested recovery in the world's biggest economy was gaining traction.

But despite recent gains since the March 11 quake and tsunami in Japan, concerns linger over the crisis at Fukushima, which has seen radiation emitted into the air, contaminating farm produce and drinking water.

Tokyo Electric Power (TEPCO), which operates the plant, insisted the release of the water -- the equivalent of more than four Olympic-sized swimming pools -- would not harm marine life or seafood safety.

However, the firm's stock price was sent tumbling again, shedding almost 19 per cent amid fears over possible huge compensation claims against it.

The firm has lost more than 80 per cent of its value before the earthquake.

"A couple of weeks ago, the company said all they have to do is to cool the reactors, but the situation doesn't seem to be improving," a trader at a Japanese brokerage told Dow Jones Newswires.

"Compensation to be paid will likely balloon with this contaminated water release."

On currency markets the dollar rose after US Federal Reserve chief Ben Bernanke said a recent rise in inflation would not continue, providing reassurances over the state of the economy.

The euro bought $1.4201 in morning trade, down from $1.4220 in New York late Monday. The single European currency had hit a five-month high of $1.4268 in intraday trade Monday.

The greenback also gained to 84.32 yen from 84.03 yen.

The euro changed hands at 119.75 yen from 119.67.

Bernanke said a jump in US inflation rates for February would be "transitory", adding that medium-term expectations "if anything, will be a bit low."

US February inflation data released last month showed soaring consumer price levels across a large swathe of goods, with costs of staples jumping 0.5 per cent -- the fastest rise since June 2009.

Bernanke's statement also hinted that he was committed to seeing through a $600 billion stimulus package expiring in June, going against fellow Federal Open Market Committee members' calls to cut it short and raise interest rates as the economy recovered.

Oil prices edged lower on profit-taking but the troubles in Libya and the Middle East continued to provide support.

Oil slid in afternoon Asian trade, with New York's main contract, light sweet crude for delivery in May, down 34 cents to $108.13 per barrel.

Brent North Sea crude for May delivery fell 27 cents to $120.79.

In other markets:

-- Manila fell 1.01 per cent, or 42.34 points, to 4,167.09.

Metropolitan Bank fell 0.6 per cent to 68.00 pesos and Philippine Long Distance Telephone shed 2.0 per cent to 2,352.

-- Wellington gained 0.29 per cent, or 9.87 points, to 3,469.38.

Fletcher Building added 0.9 per cent to NZ$9.41 and Air New Zealand rose 0.9 per cent to NZ$1.14.