Euro shakes off Greece woes in Asia, stocks rise

The China Post - - BUSINESS INDEX & -

The euro edged up in Asia Wed­nes­day de­spite Greece hit­ting out at its cred­i­tors as its debt re­form talks re­main in stale­mate, while stocks mostly rose af­ter a pos­i­tive lead from Wall Street ahead of a Fed­eral Re­serve pol­icy meet­ing.

With the re­lease of some dis­ap­point­ing U.S. data and the Greek cri­sis drag­ging on, an­a­lysts said deal­ers are hop­ing the Fed puts back a rate hike, which is ex­pected by the end of the year.

Shang­hai surged 1.65 per­cent, or 80.47 points, to 4,967.90 and Hong Kong added 0.70 per­cent, or 187.09 points, to close at 26,753.79

Syd­ney rose 1.08 per­cent, or 59.6 points, to close at 5,595.4 and Seoul ended 0.30 per­cent higher, adding 6.14 points to 2,034.86. Tokyo eased 0.19 per­cent, or 38.67 points, to 20,219.27.

Fears Athens will de­fault and crash out of the eu­ro­zone in­creased Tues­day when Greek Prime Min­is­ter Alexis Tsipras ac­cused cred­i­tors of try­ing to “hu­mil­i­ate” his coun­try and said the IMF bore “crim­i­nal re­spon­si­bil­ity” for aus­ter­ity mea­sures that plunged it into re­ces­sion.

His out­burst comes af­ter talks be­tween the two sides broke down Sun­day and have yet to restart, and led to calls for him to tone down his rhetoric to reach an agree­ment.

With the stale­mate show­ing no signs of end­ing, U.S. Trea­sury Sec­re­tary Ja­cob Lew told Tsipras in a phone call Tues­day he should make “a se­ri­ous move to reach a prag­matic com­pro­mise with its cred­i­tors.”

Fail­ing to reach a deal “would cre­ate im­me­di­ate hard­ship for Greece and broad un­cer­tain­ties for Europe and the global econ­omy,” Lew warned, ac­cord­ing to a state­ment from the Trea­sury.

An­a­lysts said the cri­sis would likely be in fo­cus when the Fed con­cludes its meet­ing l ater Wed­nes­day, with its head Janet Yellen due to hold a news con­fer­ence soon af­ter. Deal­ers are hop­ing for some clearer guid­ance on its plans for rais­ing in­ter­est rates, with fears a hike too soon could hit the global econ­omy.

“I ex­pect there to be a sense of re­lief if Yellen says that they won’t hurry into rate hikes, or says some­thing sup­port­ive to­wards a re­cov­ery in the U.S. econ­omy,” Hiroichi Nishi, a man­ager of in­vest­ment re­search and ser­vices at SMBC Nikko Se­cu­ri­ties in Tokyo, told Bloomberg News.

“The mar­ket con­tin­ues to be wary of Greece’s pos­si­ble de­fault.”

And Shane Oliver, the head of in­vest­ment strat­egy at AMP Cap­i­tal In­vestors Ltd. in Syd­ney, added: “Yellen is un­likely to come across as overly hawk­ish given the Greek sit­u­a­tion.”

A strong run of re­cent data has in­creased ex­pec­ta­tions for a rate rise as soon as Septem­ber but this has been slightly tem­pered by be­low-forecast re­ports this week on hous­ing starts and fac­tory out­put.

On Wall Street, the Dow rose 0.64 per­cent, the S&P 500 added 0.57 per­cent and the Nas­daq ad­vanced 0.51 per­cent.

Gold fetched US$1,178.47 com­pared with US$1,183.25 late Tues­day. In other mar­kets: — Mum­bai closed up 0.55 per­cent, or 146.15 points, at 26,832.66.

Tata Steel soared 3.62 per­cent to 305.10 ru­pees while Vedanta Ltd plunged 3.14 per­cent to 173.00 ru­pees.

— Bangkok added 0.77 per­cent, or 11.51 points, to 1,514.79.

Coal pro­ducer Banpu climbed 0.97 per­cent, or 0.25 baht, to 26.00 baht, while Bangkok Bank gained 0.28 per­cent, or 0.50 baht, to 180.00 baht.

— Sin­ga­pore closed up 0.84 per­cent, or 27.82 points, to 3,325.91.

Sin­ga­pore Tele­com gained 1.21 per­cent to SG$4.20 while real es­tate devel­oper Cap­i­taland fell 0.30 per­cent to SG$3.32.

— Jakarta ended up 1.50 per­cent, or 73.154 points, at 4,945.75.

Taxi op­er­a­tor Blue Bird Tbk gained 1.27 per­cent to 8,000 ru­piah, while palm oil gi­ant As­tra Agro Les­tari fell 1.75 per­cent to close at 22,500 ru­piah.

— Malaysia’s key stock in­dex closed 0.27 per­cent, or 4.62 points higher, at 1,726.86.

May­bank added 0.55 per­cent to 9.20 ring­git, Telekom gained 0.30 per­cent to 6.74 while Te­naga lost 0.45 per­cent to 13.16 ring­git.

— Welling­ton fell 0.60 per­cent, or 34.67 points, to 5,779.26.

Fletcher Build­ing was down 2.39 per­cent at NZ$8.17 and Spark slipped 1.80 per­cent to NZ$2.735.

— Manila closed 0.44 per­cent higher, adding 30.83 points to 7,536.31.

Uni­ver­sal Robina Corp. rose 5.49 per­cent to 192 pe­sos but Al­liance Global Group fell 0.22 per­cent to 22.45 pe­sos.

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