Asian markets rebound despite lingering Cyprus worries

Asian markets rebounded strongly overnight, recovering from their worst one day falls since last July, as eurozone contagion fears receded following Cyprus' controversial bailout package.

Japan's Nikkei gained 1.7% after posting a 2.7% decline in Monday's session, while the MSCI Asia Pacific index also stabilised, adding 0.5%. The recovery was led by the banking sector, with Japan's Mitsubishi UFJ advancing 1.3% and Mizuho Financial Group  gaining 1.5%. Investor sentiment was lifted after it emerged EU leaders would give Cyprus more flexibility over a planned bank levy.  However, investors remained wary over its bailout package and its plans to impose a punitive tax on deposit holders. Over in the US, markets ended trading flat, with the Dow Jones industrial aver...