Asian Markets Turn Mixed as Caution Sets In

Asian markets lost steam on Tuesday to come off their early highs following solid gains on the U.S. market and confirmation that CIT Group had secured $3 billion in financing.

The Japanese market roared back to life in the afternoon session to hit a two-week closing high. The Nikkei 225, playing catch-up after a long weekend holiday, ended up 2.7 percent at 9652.02, higher while the broader Topix rose 2.7 percent to finish at 901.55. Investors turned their attention to politics as Prime Minister Taro Aso's  dissolved parliament's lower houseon Tuesday for an election expected on Aug. 30.

Japanese exporters rose broadly on optimism for the U.S. economy, with Canon up 3.6 percent and Panasonic leaping 5.7 percent. Toyota Motor

shares raced up 3.1 percent after saying it plans to overhaul its U.S. manufacturing strategy to account for idle capacity and a change in corporate priorities.