Asia markets up on Greece hopes
Asian markets mostly rose Monday after Greece gave creditors new proposals on reforming its bailout, fueling hopes of averting a default and possible exit from the eurozone.
The euro also advanced after Brussels said it had received the plans a day before a emergency European summit Monday, with the office of Greek Prime Minister Alexis Tsipras calling it a “mutually beneficial deal.”
Tokyo rallied 1.26 percent, or 253.95 points, to 20,428.19 and Seoul gained 0.40 percent, or 8.20 points to 2,055.16, while Sydney reversed early losses to add 0.24 percent, or 13.20 points, to 5,610.20.
Hong Kong jumped 1.20 percent, or 320.32 points, to 27,080.85.
Shanghai was closed for a public holiday.
The news also sent European shares soaring in early trade. Athens surged more than 7 percent, Germany and Paris each jumped more than 3 percent and London was up 1.40 percent.
While it is not clear what concessions have been offered, Martin Selmayr, the head of the cabinet of European Commission President Jean-Claude Juncker, said the Athens proposal offered “a good basis for progress.”
However, he underscored the tumult surrounding the deal by describing the negotiations as a “forceps delivery.”
The plans were submitted after Tsipras held talks with German Chancellor Angela Merkel, French President Francois Hollande and Juncker.
Analysts said the move was cheered in Asian trading rooms. “Originally there wasn’t going to be one, so the fact that there’s a new proposal on the table appears to be seen favorably,” Shoji Hirakawa, chief equity strategist at Okasan Securities Co. in Tokyo, told Bloomberg News.
The heads of the 19 eurozone countries will hold an emergency summit in Brussels later Monday, under pressure to prevent Greece from defaulting on its debt.
If the two sides are unable to agree a deal, Greece will likely default on an IMF debt payment of around 1.5 billion euros due on June 30, leading to the possibility of it crashing out of the eurozone.
Greece said its new proposals were aimed at reaching a “definitive solution” to end the standoff with creditors.
On Monday morning France’s finance minister Michel Sapin hailed the “quality” work around Athens’ latest proposals. He told French radio: “I see the work that has been done. It is quality work,” adding that talks were proceeding in “good conditions.”
EU economic affairs commissioner Pierre Moscovici said the fate of Greece and the euro would “largely be decided” Monday, adding that he believed a deal could be reached.
The European Central Bank will also meet to discuss whether to raise the level of emergency funding to Greek lenders again, as the country’s banking system faces a run by customers withdrawing their cash.
Gold fetched US$1,195.56 compared with US$1,202.66 late Friday. In other markets: — Mumbai rose 1.52 percent, or 414.04 points, to end at 27,730.21.
Axis Bank rose 3.62 percent to 572.00 rupees, while telecom major Bharti Airtel fell 2.25 percent to 424.20 rupees.
— Singapore closed up 0.43 percent, or 14.17 points, to 3,315.13.
Real estate developer Capitaland gained 0.89 percent to SG$3.39 while Oversea-Chinese Banking Corporation rose 0.60 percent to SG$10.13.
— Jakarta ended down 0.52 percent, or 25.75 points, at 4,959.25.
Bank Danamon Indonesia gained 0.34 percent to 4,370 rupiah, while palm oil giant Astra Agro Lestari dropped 2.65 percent to 22,050 rupiah.
— Malaysia rose 0.64 percent, or 10.99 points, to 1,732.76.
Maybank added 0.43 percent to 9.34 ringgit, Tenaga Nasional gained 1.87 percent to 13.10 while Top Glove lost 0.15 percent to 6.59 ringgit.
— Bangkok added 0.84 percent, or 12.60 points, to close at 1,504.06.
Coal producer Banpu slipped 0.96 percent to 25.75 baht while Airports of Thailand rose 2.07 percent to 296.00 baht.
— Wellington fell 0.17 percent, or 9.73 points, to 5,772.04.
Fletcher Building was down 0.84 percent at NZ$8.26 and Spark was unchanged at NZ$2.83.
— Manila rose 0.10 percent, or 7.97 points, to 7,609.14.
Universal Robina added 1.01 percent to 200.00 pesos, Manila Electric advanced 1.75 percent to 290.00 pesos and BDO Unibank ended 0.18 percent up at 110.00 pesos.