Asia indices encouraged by euro deal Asian indices started the third quarter on a bright note as investors cheered the outcome of the European summit while improving business sentiment in Japan helped steel and construction stocks. Exporters and resource stocks led strong early gains after traders in the region got their first chance to react to the detailed agreement by European leaders to tackle the region's debt problems. IN Asia-Pacific Equities But as the session developed, risk appetite waned somewhat as the sense of relief faded, leaving indices with modest overall gains by the close of trade. Overall, the MSCI Asia Pacific index advanced 0.4 per cent to 227.4. Tokyo's Nikkei 225 was unable to hold an intraday high that took it to its best level in almost two months as investors were quick to take profits. It ended the day flat at 9,003.48. But after the Tankan business-sentiment index beat estimates, with large manufacturers expecting conditions to improve further in the third quarter, Japanese construction and shipping stocks held gains. Sumitomo Chemical was the best single gainer on the index, up 2.9 per cent at Y250. In China, improving manufacturing data was not enough to offer the Shanghai Composite support throughout the session, as the government purchasing managers index was not as bad as feared, but nonetheless hit a seven-month low. The stock index finished flat at 2,226.11, with resource stocks taking the biggest overall hit. Sinopec fell 0.8 per cent to Rmb6.250. Elsewhere in the region, Seoul's Kospi was 0.1 per cent weaker at 1,851.65. Sydney's S&P/ASX 200 was 1 per cent higher at 4,133.00 and Hong Kong's Hang Seng remained closed for a public holiday.