Mar­kets gain amid stim­u­lus hopes

The China Post - - MARKETS -

Euro­pean shares rose Mon­day, shrug­ging off un­ease over the Greek debt sit­u­a­tion and re­newed signs of weak­ness in the U.S. econ­omy, af­ter Shang­hai’s bench­mark jumped nearly 5 per­cent on ex­pec­ta­tions of new stim­u­lus mea­sures.

Ger­many’s DAX edged 0.2 per­cent higher to 11,434.89 and the United King­dom’s FTSE picked up 0.1 per­cent to 6,992.60. France’s CAC-40 added 0.6 per­cent to 5,035.62.

Wall Street looked poised to re­coup Fri­day’s losses which were trig­gered by news that the U.S. econ­omy shrank in the first three months of the year. Dow fu­tures were up 0.2 per­cent at 18,042.00. S&P 500 fu­tures added 0.1 per­cent to 2,108.20.

Greece’s ne­go­ti­a­tions with its Euro­pean cred­i­tors on re­forms it must make to get a vi­tal 7.2 bil­lion euro (US$7.8 bil­lion) pay­ment from the bailout plan keep­ing it afloat dragged on past the week­end. Greek Prime Min­is­ter Alexis Tsipras spoke with the French and Ger­man lead­ers on Sun­day in their sec­ond con­fer­ence call in three days to dis­cuss progress in the talks, Greek of­fi­cials said.

Tokyo stocks rose again, ex­tend­ing the bench­mark in­dex’s rise to a 12th straight day, its long­est in more than a quar­ter of a cen­tury. The Nikkei 225 at the Tokyo Stock Ex­change spent much of the day in neg­a­tive ter­ri­tory be­fore edg­ing up 0.03 per­cent, or 6.72 points, at the close to 20,569.87.

That marked its long­est win­ning streak since a 13-day run in Fe­bru­ary 1988 dur­ing the height of Ja­pan’s stock mar­ket bub­ble.

The broader Topix in­dex of all first-sec­tion shares climbed 0.29 per­cent, or 4.91 points, to 1,678.56. Deal­ers said the mar­ket was tak­ing an up­beat view on Ja­panese firms’ re­cent earn­ings.

Toy­ota closed 0.97 per­cent lower to 8,520 yen, Sony fell 1.02 per­cent to 3822.5 yen while Ja­pan’s big­gest bank Mit­subishi UFJ rose 1.50 per­cent to 935 yen and Toshiba was up 3.28 per­cent to 450 yen, af­ter the lead­ing Nikkei busi­ness daily said the con­glom­er­ate may re­store a div­i­dend can­celled in the wake of an ac­count­ing probe.

But Syd­ney dropped 0.72 per­cent, or 41.8 points, to close at 5,735.4 and Seoul fell 0.59 per­cent, or 12.43 points, to 2,102.37.

Sin­ga­pore, Welling­ton and Bangkok were closed for public hol­i­days.

Hong Kong shares closed 0.63 per­cent higher, while Shang­hai surged al­most 5 per­cent af­ter of­fi­cial data in­di­cated a pick-up in Chi­nese man­u­fac­tur­ing ac­tiv­ity in May.

The bench­mark Hang Seng In­dex added 172.97 points to 27,597.16 on turnover of HK$164.84 bil­lion (US$21.27 bil­lion).

In main­land China the bench­mark Shang­hai Com­pos­ite In­dex surged 4.71 per­cent, or 217.00 points, to end at 4,828.74 on turnover of 934.5 bil­lion yuan (US$152.7 bil­lion).

The Shen­zhen Com­pos­ite In­dex, which tracks stocks on China’s sec­ond ex­change, gained 4.79 per­cent, or 133.71 points, to 2,926.96 on turnover of 829.9 bil­lion yuan.

Shang­hai plunged 6.5 per­cent on Thurs­day due to con­cerns over stricter re­quire­ments by se­cu­ri­ties firms for mar­gin trad­ing — through which in­vestors bor­row money to trade stocks.

In a re­port re­leased on Fri­day, China’s cen­tral bank said it would con­tinue to pro­mote sta­ble and healthy devel­op­ment of the stock mar­ket as it looks to strengthen the role of the fi­nan­cial mar­kets to sta­bi­lize eco­nomic growth.

Se­cu­ri­ties firms were among the big­gest gain­ers in Shang­hai. Citic Se­cu­ri­ties jumped 7.05 per­cent to 32.51 yuan while China Mer­chant Se­cu­ri­ties added 5.47 per­cent to 31.98 yuan.

Banks also rose in Shang­hai. Bank­ing gi­ant ICBC gained 3.16 per­cent to 5.23 yuan while China Con­struc­tion Bank ad­vanced 5.02 per­cent to 6.69 yuan.

Gold fetched US$1,185.80 com­pared with US$1,190.33 late Fri­day. In other mar­kets: — Manila ended 1.19 per­cent, or 89.91 points, higher at 7,670.37.

— Jakarta ended down 0.05 per­cent, or 2.56 points, at 5,213.82.

Miner Aneka Tam­bang gained 1.97 per­cent to 775 ru­piah, while In­done­sian cig­a­rette man­u­fac­turer Gu­dang Garam fell 0.21 per­cent to 47,000 ru­piah.

— Kuala Lumpur ended down 0.24 per­cent, 4.11 points, at 1,743.41.

Bri­tish Amer­i­can Tobacco fell 1.77 per­cent to 60.90 ring­git, Gent­ing Malaysia lost 0.24 per­cent to 4.24 ring­git while Public Bank added 0.22 per­cent to 18.54 ring­git.

— Mumbai rose marginally by 0.07 per­cent, or 20.55 points, to end at 27,848.99.

En­gi­neer­ing ma­jor Larsen Toubro rose 3.03 per­cent to 1,705.50 ru­pees, while Sun Phar­ma­ceu­ti­cal In­dus­tries fell 8.99 per­cent to 878.95 ru­pees.

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